Priceline.com's Woes Could Bring Space Back to Market in Connecticut

NORWALK, CT-The news that two licensees of Priceline.com were shutting down caused investors to scramble as the Web-based discount service firm’s stock price tumbled all day on trading on the NASDAQ market on Thursday.

However, some of the discussion in real estate circles in Fairfield County was that the company’s troubles could bring some much needed space back on the market. On Thursday, Priceline licensees Priceline Web House Club and Perfect Yardsale Inc. were going out of business. Priceline Web House Club offered groceries and gasoline, while Perfect Yardsale offered used merchandise to consumers on Priceline.com’s Web site.

Priceline.com officials released a statement to calm investors’ fears and explained that the company is still very strong and exploring new opportunities despite the licensee closings. However, the company did not return phone calls for comment by GlobeSt.com on the real estate ramifications the two licensee closings would have on the firm.

Real estate sources told GlobeSt.com that Priceline Web House Club earlier this year signed a series of lease transactions at the former Greenwich American Centre totaling approximately 130,000 sf. The firm occupies space in two buildings at the 605,000-sf complex that at one time was the home of the American Can Company. Brokers, who asked not to be identified, said that this space may become available on the sublease market now that the company plans to shut its doors in the next 90 days.

The operations of Perfect Yardsale Inc., are housed at Priceline.com’s corporate headquarters at 800 Connecticut Ave. in Norwalk. Priceline.com occupies a total of 130,000 sf of space in the 403,000-sf office property. The firm also leases approximately 140,000 sf at High Ridge Office Park in Stamford as well as 47,000 sf on Danbury Road in Wilton and about 32,000 sf of space at the Merritt 7 complex in Norwalk.

Earlier this year, Priceline.com had been seeking to consolidate its offices into one location and had been searching for properties in Connecticut and Westchester County, NY However, the firm found few available properties that would satisfy its requirement of approximately 400,000 sf of contiguous space, brokers say.

Area brokers contend that if some space affiliated with Priceline.com does come back on the market, it would be filled quickly due to the high demand for office space in Fairfield and Westchester counties. Although area brokerage firms have yet to release their third quarter office availability statistics, brokers say that both markets are very tight especially for large space requirements.

Priceline.com, which in the past year saw its stock sell as high as $104.25 per share closed at the end of trading on Thursday at $5.81 per share down $3.56 for the session.