Fairfield, Westchester office markets continue on slow path to recovery

Recovery in Fairfield and Westchester’s office markets continued at a slow pace during the second quarter of 2011, according to a second-quarter office market report from Rhys (see report below).

The quantity of available office space in Fairfield County amounted to 1.1 million square feet during the quarter, 5 percent less than the first quarter and 6.4 percent less than in the same period last year at the same time. Availability rates dropped to 20.7 percent over the past four consecutive quarters. Leasing activity jumped 24.3 percent over the first quarter, thanks in large part to a 227,998-square-foot lease signed by Bridgewater Associates at 20 Westport Road in Wilton.

The amount of space available in Westchester County remained slightly above 7 million square feet, with the availability rate stuck at 17.5 percent, the report says. Leasing activity declined 9.8 percent to around 700,000 square feet from around 800,000 square feet in the first quarter. To put those figures in perspective however, it is important to remember that 540,000 square feet of the 782,814 leased in the first quarter was the PepsiCo. renewal at 1 Pepsi Way. — Katherine ClarkeRhys 2q 2011 Office Market Report