Commercial leasing activity in Fairfield County and average rental rates for the second quarter were virtually unchanged from the same period a year ago, according to a quarterly market report from RHYS L.L.C.
Fairfield County leasing activity totaled 673,120 square feet in the second quarter, down 0.5 percent from the second quarter of 2012. Similarly, the average rental rate of $33.07 was just barely higher than a year ago, when it was $33.05, according to the RHYS report.
With nearly 11.7 million square feet of available space countywide, the availability rate decreased slightly to 22.26 percent in the second quarter from 22.76 percent the prior quarter and 22.34 percent in the second quarter of 2012.
Demand remained strong for sublet space compared with space available for direct lease. Available sublet space fell to its lowest level since the third quarter of 2008, dropping nearly 12 percent to 1.56 million square feet from 1.76 million square feet a year ago.
“It was a stronger quarter for sublet deals than direct deals once again, which really just goes along with the trend we”™ve seen of companies switching from the longer, five to 10-year deals, to subleased space, where deals tend to be just a year, three at most, and tend to be cheaper as well,” said Eric Griffin, director of research and financial analysis for RHYS, a commercial leasing and management firm based in Stamford.
Griffin said the trend is indicative of the cautious, wait-and-see approach by companies.
In contrast to neighboring Westchester County, Griffin said there was still a smattering of larger deals in Fairfield County during the second quarter.
“We had six deals of more than 20,000 square feet this quarter. Westchester, on the other hand, had only one,” he said. However, he noted that seven spaces of more than 20,000 square feet became available in Fairfield County during the quarter due to companies downsizing or relocating.
The southern submarket, which includes Stamford and Greenwich and accounts for more than half the county”™s available space, saw its availability rate rise 4.9 percent since the second quarter of 2012.
In contrast, the availability rate in the eastern submarket, which includes Bridgeport, Fairfield, Shelton, Stratford and Trumbull, dropped 11.2 percent over the past year, according to the RHYS report.
