Large Amounts of Sublease Space Added to Suburban Office Market – Opportunistic Time for Tenants
NORWALK, Conn. /CitizenWire/ — 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 23rd semi-annual Lower Fairfield County Office Space Availability Poster.
The full-size poster depicts silhouettes of 96 buildings with a total inventory of 18.2 million square feet (sf) and tracks changes in office space availability from Year-End 2020 to Mid-Year 2021 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.
This report shows there was a 1.9 percentage point increase in total availability during the first half of 2021, from 27.8% at Year-End 2020 to 31.7% at Mid-Year 2021. Interestingly, of the 361,923 sf increase in total availability, 88% is due to new sublease space added to the market.
The following refers to the poster’s “availability rate” at Year End 2020 vs. Mid-Year 2021 in each market surveyed:
* Stamford increased from 34.1 to 35.1%. Of the 31 buildings surveyed, 11 experienced a decrease in available square footage, 12 had an increase and 8 were unchanged. 300 Atlantic Street, 1 Landmark Square, and 677 Washington Boulevard combined added 157,672 sf of available space.
* Norwalk increased from 34.6% to 35.8%. Of the 20 buildings surveyed, 7 experienced a decrease in available square footage, 9 had an increase and 4 were unchanged. 383 Main Avenue, 201 Merritt 7 and 401 Merritt 7 combined added 81,883 sf of available space.
* Greenwich increased from 16.1% to 21.8%. Of the 25 buildings surveyed, 9 experienced a decrease in available square footage, 7 had an increase and 9 were unchanged. 1 American Lane, 100 West Putnam Avenue, and 411 West Putnam Avenue combined added 249,173 sf of available space.
* Westport, the strongest of the four markets, increased from 12.6% to 13.6%. Of the 20 buildings surveyed, 3 experienced a decrease in available square footage, 7 had an increase and 10 were unchanged. 500 Post Road E, 276 Post Road W, and 315 Post Road W combined added 17,725 sf of available space.
“Over the past five years, this is only the second time that all four sub-markets have shown an increase in availability,” stated John P. Hannigan, a principal at Choyce Peterson. “The total availability increased by 1.9 percentage points over the past six months. And in the twelve-month period (July 1, 2020 – June 30, 2021) it increased by 3.9 percentage points. With an abundance of office space available in the market, tenants can choose between a wide geographic, quality and price range. Free rent, landlord funded build outs, and discounted rent continue be favorable deal terms for tenants in today’s market.”
Adam Cognetta, a vice president at Choyce Peterson noted, “While availability is up, office leasing inquiries remain strong with some tailwinds courtesy of recent Lower Fairfield County HQ relocation announcements. Companies with foresight on headcount, performance, and utilization of space in markets with high availability rates are best positioned to lock-in attractive, long-term deals. Firms or organizations lacking that visibility still have plenty of shorter-term, turn-key options via both direct space and sublease alternatives. We remain cautiously optimistic as the lasting effects of work-from-home and post-pandemic workplace take shape.”
To view the poster, click on the following link: http://www.choycepeterson.com/officeposter
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.
MEDIA CONTACTS:
John P. Hannigan
Principal
203-961-8175
Choyce Peterson, Inc.
jhannigan@choycepeterson.com
www.choycepeterson.com
Adam M. Cognetta
Vice President
203-961-8173
203-961-8173
acognetta@choycepeterson.com
www.choycepeterson.com
MULTIMEDIA:
*IMAGE link for media: https://www.Send2Press.com/300dpi/21-0719s2p-choycep-chart-300dpi.jpg
*Caption: Choyce Peterson’s Mid-Year 2021 Lower Fairfield County Office Space Availability Poster.
Learn More: https://www.choycepeterson.com/
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