What area is your expertise?
Connecticut — Fairfield County.
What trends do you see presently in office development in your area?
Slow to moderate growth in office demand. An adequate supply of product is available but not many “lookers.”
Who are the active office developers in your area?
Very little new development. Mostly local developers without national recognition e.g. Building and Land Technology of Norwalk and The Davis Company, also of Norwalk.
Please name one or two significant office developments in your area. What impact will these projects have on the market?
Blackrock Realty’s new railroad station project is underway in Fairfield that will become Fairfield Metro Center office park. The 100 Fairfield Metro Center building will encompass the first phase of the development and contain 200,000 square feet of Class A office space. A pavilion building on-site will add another 70,000 square feet to the overall development. Phase I is scheduled for completion in 2009.
Where is the majority of development taking place? Why is this area doing well?
Lower Fairfield County. It’s located along the commuter route to New York City.
What area do you expect to be the next big development market? Why?
The 33-acre Wilton Corporate Park will expand with the addition of 40 and 60 Danbury Road consisting of 161,222 square feet and 81,000 square feet respectively. The developer is The Davis Company. The former is schedule for completion in 2008, and the later in 2009. This is a desirable bedroom community in within commute range of NYC and Stamford.
What areas are doing well in terms of office leasing? Which areas are struggling with office leasing?
The greater Danbury area is struggling. Lower Fairfield County is doing better.
Please give a measure of office vacancy rates. Please give a measure of available sublease space.
Danbury area overall vacancy rates are running between 15 to 18 percent, the highest in Fairfield County. Overall Fairfield County rates are slightly lower at around 12 percent.
What impact do current interest rates have on the office market? What predictions do you have for interest rates and their effect on the office market in the next year?
Lower rates will help stimulate and encourage investment. We don’t expect much change in 2009.
What is the status of job growth/(un)employment rates and what bearing will it have on the office market?
Growth is slow to negative. Slow growth will adversely impact office development.
Is there any type of office tenant absorbing a majority of space? What industries do you expect to expand in the next year to absorb a great deal of office space? What areas will be affected?
Technology and energy-related companies have the greatest potential for growth. No particular area is affected more than any other.
Submitted by Garland Warren, senior vice president with the Bethel, Conn., office of CBC Scalzo Group/ONCOR International.