It may possess census data to make other towns green with envy, but Greenwich ”“ home to exclusive, high-end retailers ”“ turns out to be closely related to Main Street U.S.A. and its economic woes.
It is a relationship the town appears now to be viewing in the rearview mirror. Whatever may be happening in Sandusky or Steubenville, the Greenwich retail and real estate scenes are gaining traction like Topsiders on a dry dock.
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Mary Ann Morrison, president and CEO of the Greenwich Chamber of Commerce said Greenwich has been no different than any place, having felt its share of effects from the economic downturn.
“This one hit home because we”™re so tied to the financial markets,” said Morrison. “From the fall of ”™08 through the spring of ”™09 people in this town were scared. Spring came around and people became a little more comfortable, knowing that there was going to be a light at the end of the tunnel. How bright that light was going to be, still no one knew, particularly in this town because the real estate market just tanked.”
Morrison said that included residential as well as commercial office space.
Nina Robinson, a lower Fairfield County Realtor with Coldwell Banker Properties, said reports indicate the absorption rate for homes is shortening up, news the industry has been waiting on since early 2009. Robinson said houses that were on the market and were taken off because of lack of interest are appearing again with market prices flattening to a midpoint.
“Comparing last January of only five homes sold in Greenwich to this January of 33, we”™re doing well,” said Robinson. “We”™re not going gangbusters, but we”™re starting to hold our own.”
Robinson said people are still coming to Fairfield County for the taxes, relocating from Westchester County and New York City.
“If you can afford it, buy it,” said Robinson, adding, “Banks are tough, but if you can get approved and can afford it ”¦”
Morrison said commercial real estate is a story all its own in Greenwich.
“Right now we have about a 15 to 17 percent office vacancy rate,” said Morrison. “It”™s a little higher than it is in Stamford right now. When Stamford is offering rates in the upper 20”™s, Greenwich is still in the 50”™s you have business that are going to ask themselves, do I need that Greenwich address?”
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Morrison said for the younger professional set there isn”™t much difference between a ride to Greenwich and a ride to Stamford. “Stamford”™s becoming a lot more walkable. You have RBS and UBS at the train station and they built there because of the space and the ease of getting off the train and I-95.”
Morrison said Nestle Waters is a prime case of leaving Greenwich for Stamford because of space and attractive rates.
“The Greenwich hedge firms will be a different scenario,” said Morrison. “They will want it because their CEO lives here and their client base will look for the Greenwich address.”
Morrison said in Greenwich there is about 700,000 square feet of commercial office space on the market.
“There were some people that were coming in, and they”™re not coming in now because of the financial markets having tanked,” said Morrison. “If you have 700,000 square feet of commercial space that is not being occupied, what does that mean to the employment rate in town? It only increases, which is where we”™re at right now. Greenwich has around an eight percent unemployment rate, which is higher than it”™s been. We”™ve always been lower than the rest but all of this has come home to roost here.”
Morrison said to lower the unemployment rate; the office space must be filled.
“We”™re calculating that there could be as much as 5,000 people a day not working in Greenwich,” said Morrison. “If you”™ve got 5,000 people a day not coming in to Greenwich to work, they”™re not getting their lunch at the local deli, they”™re not going out to lunch a few times a week with clients or colleagues, and they”™re not stopping to buy their special gifts. You see the trickle down of that. That begins to have an impact.”
Morrison said commercial space has begun to be looked at in the start of this year.
“With Greenwich Avenue, a year ago this time nothing was moving,” said Morrison. “Unfortunately some stores closed and nobody was interested in space. Come January of 2010, they”™re taking a look at the Avenue because they want to be there when the rebound comes.”
Morrison said some of the landlords have begun to be more aggressive and give better rates.
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“Rates are predicated on what will be your return, and the Avenue is really picking up, said Morrison.
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Morrison said in addition to a new bank and some smaller retail shops coming to Greenwich Avenue, the street has also recently gained the Ralph Lauren, H.H. Brown Shoes and Apple stores. Morrison said the Apple Store, which opened at the end of November, is a special tenant because of the great draw it has and the trickle-down that draw offers.
“It”™s been shown when an Apple Store opens up, how it puts new energy into the surrounding market,” said Morrison. “To have that kind of synergy is huge; you have the high tech and the classic.”
Ronald Brien, director of leasing for M. H. Heaven Real Estate L.L.C. in Greenwich, said he”™s seeing the smaller storefronts as the first to be leased while the larger empty stores will remain vacant for a while.
Brien said the lower end of Greenwich Avenue is the busiest part of the thoroughfare today.
“The bottom of the avenue has become very desirable at this point,” said Brien.
He said the Versailles Café has moved into a larger space, and a new restaurant, the name of which he would not disclose, has signed on for an 1,800-square-foot space.
One of the most recent beneficiaries of the Apple consumer influence is its new neighbor Toc Toc a “lifestyle” retail store.
Corsican-born designer and co-owner Claire Maestroni has with Toc Toc opened her second Greenwich storefront. Her first store, a furniture and interior design store called Mis en Scene, is at the top of the Greenwich Avenue hill on East Putnam and opened three years ago. Toc Toc is a colloquial French term meaning peculiar or quirky. Maestroni is partnered with French company Robert le Heros in the new venture. The partners fill the store with over a hundred designers”™ items at any one time. The store includes clothing, art and home items. Maestroni said today consumers seem to be more and more interested in finding unique story-driven items and places to spend their money.
“So far the reaction has been great,” said Maestroni. “We keep limited stocks so people keep coming back to see what”™s new and their purchase stays unique. They also take time to listen to us and the stories.”
Maestroni, a former lawyer, said in addition to being close to her other store, the value of the foot traffic that Greenwich Avenue offers was hard to pass up.
“The Apple crowd is a young, styled crowd and they come in here,” said Maestroni. “Also being closer to the station, and more people commuting on the trains, helps us. My experience through the recession is that people are really looking for something different. Of course, the fact that the rents have lowered allows for more entrepreneurs to come to the avenue. I wanted to be in the bottom of the avenue that is having a bit of a revival. It”™s becoming more of a neighborhood feel.”
