When Chelsea Piers settled on Stamford for its first expansion outside of New York City, the sports entertainment giant cited the availability of the former Clairol plant that offered a unique ”“ if not quite tailor-made ”“ facility for the purpose.
In its home base of New York City, officials want to know whether the supply of lower-tier space is suitable for the needs of companies in emerging or growth economies ”“ a question equally applicable to Fairfield County and by extension Connecticut.
With so-called Class A office space largely commanding the attention of the tri-state area real estate community, the New York City Economic Development Corp. (NYCEDC) is quietly assessing the viability of its lesser Class B office and bottom tier Class C space, recognizing the appeal of low-cost quarters for startups and other companies requiring varying bare-bones space with curbside appeal, and the flexibility to renovate it to suit their needs.
The vacancy rate on Class B office space in Fairfield County hovers around 23 percent, a few points behind countywide vacancy rate for Class A space. In all, some 2 million square feet of Class B space is available locally.
In a 110-page request for proposals, NYCEDC is soliciting consultants to lead an analysis of that component of its commercial real estate market, including in boroughs like Brooklyn which have seen a jump in activity by digital media startups and other creative arts companies.
In an initiative launched by its 2011-2012 president Marian Salzman, the recently renamed Fairfield County Communications Association has been promoting Bridgeport as a possible destination for Connecticut companies in the same mold, as part of a wider effort to promote a “creative corridor” running from Stamford to New Haven and beyond.
NYCEDC wants a comparison with a select peer group of cities in “proximate” markets or those otherwise that might compete with New York City for emerging-growth businesses. The organization says a key determinant of the city”™s ability to attract and retain high-growth firms is the availability of affordable and attractive commercial office space in both the Manhattan core and the outer boroughs where the opportunities are ripe for business growth and expansion.
New York had previously commissioned a 2006 study of its lower tier, Class B and Class C office space, and reports in 2007 and 2009 addressing costs of construction and development, respectively. With a week to go before the deadline, NYCEDC had disclosed the names of several interested consultants, none of them based in Connecticut.
If the adequacy of existing buildings remains an intriguing question, it is not one limited to the Class B market. When Westport-based Bridgewater Associates gave the go-ahead for a relocation to Stamford, it bypassed the opportunity to take Building and Land Technology”™s empty BLT Financial Centre at 695 East Main St. in Stamford ”“ which brokers say is among the city”™s best buildings ”“ in favor of building a facility from scratch to suit its needs on BLT waterfront property in Stamford.
And long after Royal Bank of Scotland abandoned its enviable location on the Greenwich harbor to build a new office and trading floor in Stamford, the Greenwich building has only recently started securing tenants after an affiliate of owner General Reinsurance Corp. gutted the building and spent millions of dollars to renovate it for the needs of today”™s businesses.
