Recent news: The leasing activity in Connecticut has been very healthy in recent months as evidence by the new leases signed in the marketplace. Some junior anchor box examples include a 24,000-square-foot REI deal in Norwalk; a 37,000-square-foot Stop & Shop Supermarket in West Hartford; a 30,000-square-foot PC Richards deal in Milford; and numerous other deals. Also, the recent sale of the Shaw’s Supermarket sites to existing supermarket chains demonstrate that retailers feel that Connecticut is still a very healthy market.
Another trend, which has been very apparent in Connecticut, has been the surge in franchise concepts leasing smaller spaces within supermarket anchored shopping centers and community centers. Some franchises that are active include Massage Envy, Sport Clips, Robeks, Five Guys, Doctors Express and numerous others.
Submarket update: The luxury-oriented streets (Greenwich Avenue in Greenwich and Main Street in Westport) had a weak 2009. However, the outlook for 2010 is much more promising with recent signature stores openings, including Apple and Ralph Lauren. Leasing activity has increased dramatically and leasing inquiries are at its highest levels since the summer of 2008.
Predictions for the next year: The “Year of Fear” (2009) is over, thankfully, and the “Year of Caution” (2010) is upon us. The leasing activity in Connecticut over next 12 months will be dramatically better than the previous 12 months. Landlords will no longer be inundated with rent reduction requests/tenant defaults and will be turning their attention to making prudent real estate deals. Retailers, on the other hand, will be primarily focusing on profitability and not dramatically increasing store counts. In short, 2010 promises to put both landlords and retailers on the road to a healthy recovery.
— Dominick Musilli, executive vice president with Stamford, Connecticut-based RHYS Commercial.