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Through The Eyes of A Realtor
Four commercial Realtors share their thoughts on the state of the market
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Business New Haven
4/15/2002
By: Melissa Necifaro
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Insignia/ESG's Peter Shiue has seen a slowdown in the commercial real estate market in the past year or so. “The slowdown has echoed that of the economy,” he says, hopeful with signs of increased activity in the first quarter of 2002 (see Real Estate, page 28).
“Until January 1, companies sat on the sidelines, waiting to see where this [economy] was going and now we are seeing an uptick,” he says.
Since the greater New Haven real estate market consists mostly of industrial space, the market for office space doesn't have much room to grow, according to Shiue.
“The office market is consistent, but not as hot as New York City and Fairfield County. There has been a steady improvement even though there is a lack of quality available industrial space.”
Levey Miller Maretz broker William Silverman paints a slightly different picture. “There's virtually no retail space left in New Haven's downtown business district,” Silverman says.
“Clients are looking for retail and restaurants and looking at investments.”
Real estate investments are up tremendously, according to Silverman, who credits the sinking of the stock market for the uprise in investments. “It's better than the bank, but not as risky as the stock market,” he says.
Since New Haven's commercial market is almost at capacity, many are flocking to Wallingford, North Haven and Hamden. Prices are comparable, but the parking crunch that exists in New Haven does not exist in other areas, Silverman notes.
Encouraged by the “activity” of the past two weeks, realtor Carl Traub had not seen much change this year. He says communications companies are “active and trying,” but the communications industry is going through a tough time with companies reorganizing and recapitalizing,
Just in the past week or two, interest in the former Starter property, a 160,000 square-foot space on James Street in New Haven, is peaking. Traub said prospective tenants include an industrial business, a communications company and an airlines office. If there is no room for them here, prospective tenants will move beyond New Haven.
“We are still seeing very limited choices of space in New Haven. If there's not space here, they're going to Shelton, Wallingford or East Haven.”
Traub's prognosis for the market: “The recession is breaking and the market is going to absorb a quarter-million square feet by the year end.”
Steven Longobardi, president of Connecticut Corporate Properties in North Haven, says the commercial real estate market depends on the health and wealth of surrounding companies. Even in North Haven, there aren't many larger blocks available for commercial use. Longobardi says they're all 90- to 95-percent leased.
All in all, the commercial market is “pretty active” there, according to Longobardi. Some space was freed up when Lucent Technologies consolidated, but that was gobbled up and now the largest available block is just 6,200 square-feet. There are 240,000 square feet of available space in North Haven.
“Many are not looking for a 10,000-square-foot block, they're looking for 2,500 to 5,000 square feet,” Longobardi explains.
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