|
|
|
Suburban Commercial Market Posts Gains
|
Business New Haven
10/4/1999
By: BNH
|
According to second-quarter reports from regional commercial real-estate firms, a strong demand for space in New Haven County's suburban office market helped offset a slower market in the central business district for the first half of 1999. CB Richard Ellis, Cushman & Wakefield and Insignia/ESG all charted signs of improvement due to a healthy statewide economy and local economic growth, creating a demand for office space in New Haven County.
The Insignia/ESG Commercial Market Report stated that Milford and Hamden accounted for 45 percent of total leases for the first six months of the year. Warnaco Inc. leased 94,510 square feet at 470 Wheelers Farms Road in Milford, the largest lease in five years. CB Richard Ellis reported that the New Haven-area office market totaled 10.7 million square feet, with 1.9 million square feet of available space (an 18-percent vacancy rate). According to the company, the market showed a negative 2,000-square-foot absorption at mid-year but did have 41,000 square feet of positive absorption for the second quarter.
Leases in New Haven during the first half of the year included 36,000 square feet at 300 George Street leased by Pirelli Armstrong Tire Co. Formerly owner-occupied by SNET, the George Street building has a total of 555,000 square feet. Even with a less-than-robust city market, the company expects activity to pick up in the second half of the year.
Cushman & Wakefield points to the region's employment base growth to 257,000 jobs and the local unemployment base drop of nearly one percentage point over the past year to three percent as a contributing factor in the health of the commercial market. In addition, the company reported that the foundation of New Haven County's office market lies in its Class A buildings. The overall commercial vacancy rate remained at 14 percent.
In addition to 300 George and the Warnaco deal in Milford, other major transactions as of mid-year included 44,769 square feet leased by Bayer Corp. in Orange, 35,000 square feet in Hamden leased by Highville Mustard Seed Corp., 25,000 square feet in Hamden leased by the New Haven Board of Education and 22,847 in Milford leased by the Commercial Union Insurance Cos.
Major sales during the first half of the year included 36,000 square feet at 802 and 832 Grand Avenue in New Haven, sold by New Haven Savings Bank to Project More. CB Richard Ellis reported that as of June 30 the greater New Haven industrial market totaled 46.7 million square feet, with 6.3 million of available space - a 13.5 percent vacancy rate. The company also sees increasing activity in the area's industrial market and expects that several substantial deals should be signed by year's end.
New Haven Office Market: Mid-Year 1999
Total SF Avail SF Vacancy 2QAbsorp YTD
New Haven 4,820,172 825,755 17.1% (8,766) (8,766)
East Suburbs 409,570 20,700 5.1% (3,800) (3,800)
North Suburbs 3,825,701 593,384 15.3% 10,500 10,500
West Suburbs 1,643,403 430,654 26.2% 43,457 0
Total Suburbs 15,878,674 1,044,738 17.8% 60,157 6,700
Total Market 10,698,846 1,870,493 17.8% 41,391 (2,055)
New Haven Industrial Market: Mid-Year 1999
Total SF Avail SF Vacancy 2QAbsorp YTD
New Haven 6,242,317 625,061 10.0% 85,000 85,000
East District 3,253,036 268,202 8.2% 0 0
North District 24,964,865 2,822,943 11.2% (68,000) 272,000
West District 12,025,010 2,595,285 21.6% (166,729) 66,420
Total Suburbs 40,463,911 5,686,430 14.1% (166,729) 66,420
Total Market 46,706,317 6,311,491 13.5% (81,729) 151,420
Source: CB Richard Ellis
Major Transactions, 1/1/99-6/30/99
Square footage Tenant Address
94,510 Warnaco Inc 479 Wheelers Farms Road, Milford
44769 Bayer Corp. 139 Frontage Road, Orange
35,000 Highville Mustard Seed Corp. 130 Leeder Hill Drive, Hamden
30,680 Pirelli Tire LLC 300 George Street, New Haven
25,000 New Haven Bd. of Ed 130 Leeder Hill Drive, Hamden
22,847 Commercial Union Insurance 440 Wheelers Farms Road, Milford
18,500 IBM Corp. 2319 Whitney Avenue, Hamden
18,000 Veritas Credit Corp. 121 Whitney Avenue, New Haven
15,000 Clinical Dynamics 860 North Main Street, Wallingford
14,586 Ocwen Financial Group 10 Research Drive, Wallingford
Insignia/ESG Commercial Market Report
Market Segment Definitions
New Haven Central Business District (CBD)
Total office space: 4.9 million s/f
No. buildings: 39
Average asking rent: $18.87 s/f
Availability rate: 20.6%
Available space: 1.0 million s/f
Space leased: 149,531 s/f
Net absorption: 47,034 s/f
New Haven Non-CBD
(incl. Milford, Cheshire, Orange, Wallingford, West Haven, Branford, North Haven, Seymour, Waterbury, Woodbridge)
Total office space: 6.3 million s/f
No. buildings: 101
Average asking rent: $17.24
Availability rate: 18.1%
Available space: 1.1 million s/f
Space leased: 340,700 s/f
Net absorption: 172,809 s/f
Insignia/ESG Commercial Market Report
Market and Submarket Statistics
Overall Vacancy Rate Avg. Rental Rate
Market Inventory` 2Q99 2Q99 2Q99 2Q98
NEW HAVEN COUNTY 9,567,122 19.6% 17.5% $17.39
New Haven CBD 3,003,680 18.3% 22.0% $16.19
Downtown Periphery 2,112,756 28.4% 11.4% $16.05
Western Subermarket 1,606,150 20.3% 21.7% $22.62
Eastern Subermarket 306,800 3.6% 0.0% N/A
Northern Subermark 2,537,736 15.2% 15.0% $15.30
YTD Net Absorption YTD Leasing Activity
Market No. Bldgs 2Q99 2Q98 2Q99 2Q98
NEW HAVEN COUNTY 180 164,948 75,063 249,492 240,445
New Haven CBD 37 14,391 (38,975) 32,647 56,517
Downtown Periphery 19 97,604 17,597 65,180 12,840
Western Submarket 40 45,285 68,685 77,180 91,006
Eastern Submarket 10 200 0 0 0
Northern Submarket 74 7,468 27,756 74,484 80,082
Cushman & Wakefield
NEW HAVEN COUNTY
Total Inventory 9,567,122 square feet
Overall Available Space 1,872,058 square feet
Overall Vacancy Rate 19.6%
Direct Weighted Avg. Rental Rate $17.37 s/f
YTD Net Absorption 164,948 square feet
YTD Leasing Activity 249,492 square feet
Cushman & Wakefield
|
Go FirstGo PreviousGo
NextGo LastGo
to Index
|
|
