Average commercial asking rents increased in Greenwich and Stamford, Conn., in the fourth quarter compared to the previous quarter, despite concerns about a slowing office market, according to a CB Richard Ellis year-end report.
In Greenwich, the average asking rent increased 8.5 percent to $66.35 from $72.58. In downtown Stamford, the average asking rent increased 3.9 percent to $41.39 per square foot from $39.76 in the third quarter.
Downtown Stamford’s availability rate, however, increased to 17.1 percent in the fourth quarter from 15.8 percent in the prior quarter. In Greenwich, the availability rate fell from 9 percent to 7 percent. Overall, Fairfield County’s availability rate fell from 12.8 percent in the third quarter to 12.6 percent in the final quarter.
Higher rents in Greenwich drove non-financial tenants to move to less expensive spaces in Stamford, Norwalk and Westchester last year, the report said. Stamford leased 1.5 million square feet last year, more than a quarter of Fairfield County’s total of 4 million-plus square feet. The financial services sector accounted for 42 percent of Fairfield’s leasing activity, up from 34 percent in 2006, while the healthcare sector accounted for 11 percent of leasing. TRD