On hilly Waterview Drive in Shelton, Poulsen Hybrid is planning to build a small wind turbine to power its facility ”“ perhaps an apt metaphor for a city where the commercial real-estate sector kept churning through the doldrums of the recession.
Shelton and neighboring Stratford were the runaway leaders in commercial office leasing activity in the first six months of 2009, according to a new study, as Shelton”™s largest developer inked multiple high-profile deals.
In the past few months, several companies have announced expansions in Shelton, none larger than Hubbell Inc.”™s planned relocation of its corporate headquarters from Orange to 110,000 square feet of space at 40 Waterview Drive, a building being erected by the city”™s dominant developer, R.D. Scinto Inc. That was the largest lease transaction so far this year in Fairfield County, though real estate brokers said there is the potential for a few more similar-size deals in the second half of this year.
In all, 185,000 square feet of space was leased in Shelton and Stratford in the first half, exceeding the activity in Stamford which has more than six times the available office space ”“ and which is far closer to New York City.
Despite the significant volume of activity, an additional 12,000 square feet of space became available in Shelton in the first half of the year, reflecting the cratered economy.
“Commercial real estate traditionally lags behind and reflects the economy, so it”™s no surprise that we”™re still dealing with a difficult market,” said Jim Fagan, a senior managing director of Cushman & Wakefield who leads the company”™s Stamford office. “While the market is still in the midst of a storm as tenants downsize their space needs and leasing activity slows, there are several tenants that are choosing this time and environment to acquire additional space. In fact, there are more than 10 companies currently in the marketplace negotiating on big blocks of space.”
On that expectation, R.D. Scinto is preparing plans for a smaller building on Waterview Drive, and at a June 23 meeting of Shelton”™s planning and zoning commission disclosed it has been in discussions with Ansonia-based Farrel Corp. about relocating into the planned structure. Farrel makes large machines for the processing of rubber and plastics, including mills, extruders and systems that produce pellets.
Despite the moribund economy, CEO Bob Scinto had reason for confidence in pushing ahead with the Waterview developments ”“ it did not take him long to attract a quartet of tenants at 6 Research Drive, after completing the office building last year. Most recently, Playtex Products took 85,000 square feet for 250 employees; Survey Sampling International relocated there from Fairfield bringing 120 workers. General Electric Co. established a backup data site in the building, while Greyhawk created a small research office.
R.D. Scinto”™s original Enterprise Corporate Park complex, the largest in Fairfield County, also continues to see activity. West Hartford-based Blum Shapiro & Co. chose the office park over Southport as a consolidation site for its Fairfield County operations, after acquiring Nishball, Carp, Niedermeier, Pacowta & Co. this past spring. Blum Shapiro took 22,000 square feet of space at 2 Enterprise Drive in Shelton, along with an option to lease an additional 18,000 square feet if it so requires ”“ ultimately the company plans to have 200 employees in Shelton within three years.
That success has stretched over to the company”™s residential business. After gambling by building a luxury high-rise condominium and apartment building in the midst of the office buildings of Enterprise Corporate Park, R.D. Scinto has succeeded in attracting residents to the building according to Katie Scinto, vice president of sales.