Surprising Results During Nine Month COVID-19 Environment
(NORWALK, Conn.) — NEWS: Choyce Peterson, Inc. (www.choycepeterson.com), a full service commercial real estate brokerage firm with a specialization in tenant representation, announced the release of its 22nd semi-annual Lower Fairfield County Office Space Availability Poster. While 2020 started with a high availability rate, it was widely expected that there would be a significant amount of available office space added to the market. This report shows otherwise as there was only a 2.0 percentage point increase in total availability, from 27.8% at Year-End 2019 to 29.8% at Year-End 2020.
The full-size poster depicts silhouettes of 96 buildings with a total inventory of 18.2 million square feet and tracks changes in office space availability from Year-End 2019 to Year-End 2020 in larger, primarily multi-tenanted Class A office buildings in Stamford, Norwalk, Greenwich, and Westport. The unique study illustrates the absorption and give back of direct and sublease space, as well as overall availability statistics.
The following refers to the poster’s “availability rate” at Year End 2019 vs. Year End 2020 in each market surveyed:
* STAMFORD increased from 30.2 to 34.1%. Of the 31 buildings surveyed, 16 experienced a decrease in available square footage, 12 had an increase and 3 were unchanged. Three buildings added a staggering 570,000 square feet of available space: 1 Harbor Point Square (sublease space), 201 Tresser Blvd (Purdue Pharma building) and 301 Tresser Blvd (direct space).
* NORWALK increased from 32.5% to 34.6%. Of the 20 buildings surveyed, 6 experienced a decrease in available square footage, 8 had an increase and 6 were unchanged. 200 Connecticut Avenue and 535 Connecticut Avenue added the most space (94,222 square feet).
* GREENWICH decreased from 18.1% to 16.1%. Of the 25 buildings surveyed, 11 experienced a decrease in available square footage, 6 had an increase and 8 were unchanged. 1 American Lane and 100 West Putnam Avenue combined, decreased their availability by 46,003 square feet.
* WESTPORT, the strongest of the four markets, decreased from 15.9% to 12.6%. Of the 20 buildings surveyed, 6 experienced a decrease in available square footage, 4 had an increase and 10 were unchanged. 55 Post Road West, 276 Post Road West and 285 Riverside Avenue combined, decreased their availability by 41,516 square feet.
“I’m sure this report will perplex many people,” stated John P. Hannigan, a principal at Choyce Peterson. Hannigan continued, “I’ve had numerous conversations with area executives and read many reports about the demise of office space. To date, our regional market has weathered the storm of COVID-19. In fact, two of the four markets surveyed, Greenwich and Westport, have seen a decrease in availability rates. Greenwich benefited from NYC based companies leasing space, while Westport’s absorption was mainly comprised of companies relocating within Fairfield County.”
He added, “With an increase in available space in Stamford and Norwalk, landlords in these markets are now more flexible with financial and business terms when negotiating leases. In fact, in the second half of 2020 we obtained significantly favorable results for our clients including rental rates below the ask and a substantial amount of free rent, with landlords funding and providing a new office buildout based on a tenant’s specifications.”
Adam Cognetta, vice president at Choyce Peterson noted, “While there has been and remains a heavy focus on strong residential market dynamics, commercial office market activity was frozen for most of 2020 and since late fall has been thawing out. We expect the uptick in activity to continue through 2021, partially offset by the longer-term implications of work-from-home flexibility and post-pandemic workplace planning. As leases expire, executives will be focused on evaluating appropriate sizing and lease terms among other key considerations.”
To view the poster visit: https://www.choycepeterson.com/officeposter2020ye
To order a copy of Choyce Peterson’s comparative Silhouette Poster, please call 203-356-9600 or email info@choycepeterson.com.
About Choyce Peterson
Choyce Peterson, Inc., a full service commercial real estate brokerage and consulting firm with offices in Norwalk, CT and Rye Brook, NY, was founded in 1997 and has negotiated millions of square feet of transactions in 42 states and Canada. The Choyce Peterson process delivers comprehensive and creative real estate solutions to ensure clients derive maximum value from their real estate decisions.
Learn more at: https://www.choycepeterson.com/
MEDIA CONTACTS
John P. Hannigan
Principal
203-961-8175
Choyce Peterson, Inc.
jhannigan@choycepeterson.com
Adam M. Cognetta
Vice President
203-961-8173
Choyce Peterson, Inc.
acognetta@choycepeterson.com
Related link: https://www.choycepeterson.com/
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