Summers' time

Ben Summers

Fairfield County had a record year in the office market in 2007 according to CB Richard Ellis. Leasing activity and average asking rents reached all time highs. But, during the first three quarters of '08 the "effects of the current collapse of the financial sector and the dramatic restructuring of the capital markets" is "entirely reversing the direction of the region's office market." Given that more than 26% of the overall office space in the county is occupied by financial services firms, the market has felt the impact of the national credit turmoil more than in previous years. CBRE reported that leasing activity year-to-year was off by more than a million s/f.

Cushman & Wakefield's 3rdQ report notes there is little new construction taking place and vacancy rates remain relatively low. Overall Class A rates registered 13.9%, slightly higher than the 13.3% at the end of 2ndQ, and up from 12.8% in 3rdQ of '07. Asking rents for Class A space at the close of 3rdQ averaged $35.88 psf countrywide, up from 35% at 3rdQ in '07. Although rents have not increased dramatically, concessions (free rent, tenant improvement allowances) have become more generous, resulting in lower rents, overall, for tenants. In a counterintuitive move, Building & Land Technology is moving ahead with construction of 2 office buildings in the Stamford Harbor Pointe Development totaling 400,000 s/f that will be ready for occupancy in '09.

To have big success, you must have big dreams, and you must be willing to take a chance. Sumner Redstone