The New Haven office market weakened during the fourth quarter of 2011, with overall available inventory growing from 12.2 percent the previous quarter to 12.8 percent of total inventory, according to the latest report from Colliers International.
John Keogh, who writes the quarterly report, attributed the change mainly to the growth of Higher One, the financial firm that began vacating 40,000 square feet at 25 Science Park to 142,000 square feet of newly renovated office space at 275 Winchester Avenue (which was not listed as part of the existing inventory, hence the move’s negative impact on the vacancy rate).
Otherwise, the office market has followed a familiar pattern of vacancies inching upward along with the weak economy. Rents have held steady, Keogh reports, while landlord concessions have become more prevalent over the last year. However, the office market in New Haven remains significantly healthier than it is in many other parts of the country.
Look for further changes. The New Haven Register recently announced plans to sell its Sargent Drive headquarters and move its newsroom somewhere downtown.