When it came time for Callanen International to expand again, less than five years after moving into its present Norwalk headquarters, rather than move the company chose to refit adjacent space in its existing building.
Callanen International, a fashion products vendor owned by Middlebury, Conn.-based Timex Corp., inked a five-year lease in 2003 for 66,000 square feet of space at 145 Woodward Ave. Needing additional space, Callanen opted to stay put by taking 12,000 square feet of additional space at the site, which is owned by Westport-based Wittek Development L.L.C.
With real estate observers predicting a de facto moratorium on the construction of new commercial buildings until credit markets stabilize, building-interior contractors may find themselves in demand as companies refit or expand existing buildings to accommodate staff in a still-growing economy.
In the first half of the year, commercial and institutional construction more than offset weakness in residential building permits this year, according to the Connecticut Center for Economic Analysis (CCEA) at the University of Connecticut. CCEA warned, however, that schools and renovation work dominated contracts, and that the pipeline for new construction appears weak
According to McGraw-Hill Construction, some $388 million in projects was put out to bid in Connecticut last week. With the exception of a $60 million residential complex, most major projects involved schools and municipal buildings, as the state passed a $3 billion bond bill allowing such projects to proceed.
In the case of the Callanen, ADP Services Corp. is the general contractor handling the expansion. Originally started to handle renovations at the Merritt 7 Corporate Park in Norwalk owned by parent company Arthur D. Phelps Inc., ADP today generates about 40 percent of its business at other sites like Nyala Farms Corporate Center in Westport.
As available class A office space continues to contract in Fairfield County, construction buildings have kept busy as landlords have renovated interiors to create additional space and squeeze in additional tenants. Now area construction companies anticipate more business gussying up less-attractive buildings for office use, according to Keith Crosby, vice president of construction at ADP Services.
“You are seeing companies like Wittek buying buildings like this and saying, ”˜Lets convert it for office use,”™” Crosby said. “It was normal back when the dot-coms were around, but it”™s rarer now.”
Arthur D. Phelps Inc. is not the only local developer or office manager with its own construction arm. W&M Construction, a unit of W&M Properties, vies with Stamford-based Signature Construction Group of Connecticut for the status of the largest builder in Fairfield County as measured by number of contracts won in 2006.
Building and Land Technology, a Norwalk company that owns the Towers complex adjacent to Merritt 7, also has a building unit, although in the past it has not strayed off its own properties for business.
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