As the final Antares blunder at the old UST building sits empty and the offices intended to rent for $150 sq. ft. await new hedge fund clients, alternative A space keeps getting cheaper.
The availability of Class A space has benefitted tenants looking to reduce their rent payments. In Greenwich, asking rents fell to $63.22 per square foot, a decline of nearly $32 from this time last year, according to Robert Caruso, senior managing director of CB Richard Ellis’ Westchester-Fairfield operations.
Much of the decline in Greenwich lease rates could be attributed to the financial crisis that began at the end of 2007 as many boutique financial firms closed, said Joe Caridi at FirstService Williams Commercial Real Estate in Stamford, estimating that there is more than 400,000 square feet of sublease space available in Greenwich.
Asking rents for Class A office space across the county now range from a low of $18.54 per square foot in Fairfield East to a high of $94.30 per square foot in Greenwich’s central business district, while the overall average was $29.49.
What’s commercial real estate have to do with the Greenwich residential market? Consider this:
The slow commercial real estate market has a direct correlation to employment, Caridi said.
“Employment in the Fairfield County market slid again during the third quarter,” he said. “Total employment in the county is down by 3.45 percent since last year, and each of the major sectors that utilize office space registered significant year-over-year declines in employment.”