CBRE: Office Leasing in Fairfield County Stalls Due to COVID-19

23 Jul 2020

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COVID-19 had a significant impact on the Fairfield County office marketin Q2 2020. There was a major slowdown in leasing activity in Q2 2020, with just 136,591 sq. ft., a 50% decrease from Q1 2020 and a 56% decline from Q2 2019.

 

The lack of demand and addition of sublease space coming to market in Fairfield County led to a 150 basis point (bps) quarterly increase in the availability rate to 25.2% in Q2 2020, with 42% of that new availability from sublease space.

 

“Despite setbacks during the second quarter, the Fairfield County office market has begun to see activity from New York City occupiers seeking satellite office space closer to their Fairfield-based workers who are not yet ready to use mass transit,” said CBRE’s Tom Pajolek, an office broker specializing in the Fairfield County market. “We’ve seen several small tenants take space already and anticipate this trend will continue into the third and fourth quarters of the year.”

 

While a boon for the Fairfield market, the modest trend is not a significant factor for leasing demand or occupancy in Manhattan’s 400 million sq.ft. leasing market.

 

The average asking rent of office space in Fairfield County during the second quarter was stable at $34.35 per sq. ft., largely unchanged quarter-over-quarter but down 2% from Q2 2019. Net absorption was negative 617,768 sq. ft., down from the previous quarter’s level of negative 55,800 sq. ft.

 

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.