Objective Highlight trends in this market place Identify areas of risk and opportunity Bring strategic awareness to –Market participants –Municipal leaders
Market Drivers Office markets are driven by jobs Jobs are changing -Cost reduction / Technology -Education -Legal/Tax structure -Society
Definitions Large Floor Plate User – Corp. tenants over 15,000 SF in market Public Space needs decision not made here Small Floor Plate User < 5,000 SF Private Companies Professional Owner Lives Here
Survey Parameters Class A & B Office with GBA > 5,000 SF Locations – various logical office markets –Greenwich –Stamford –Norwalk –Westport/Fairfield –Trumbull/Shelton –Danbury LMA
What we will look at Brief history – How we got here Where the jobs are locating currently Impact of job growth on this office market Emerging Trends Opportunity Index – graphical representation of risk
Historical Space Additions Large floor plate buildings added in SF 1980s - 25,000,000 1990s - 9,000,000 2000s - 5,000,000 Total - 39,000,000
Fairfield County- Historically Persistently High Vacancy Rates Since 2001
Big Picture Dynamic Job Market Information based jobs are now going to the lowest cost provider Higher end jobs are filling in the space – just not filling in enough space Will there be enough jobs to fill the space?
Trailing 12 Months Strong leasing of 2.5 million SF Offset by downsizing, relocations, new space –Purdue Pharmas OxyContin issue results in 300,000 SF giveback –International Papers relocation down south dumps 120,000 SF –901 Merritt coming on line with 375,000 SF 18% increase in smaller deals (10k-20k SF) Musical Chairs Investment sales are hot
Jobs 1.Who is going to occupy the current and projected future vacant space? –Leaner, more educated workforce 2.Where will those jobs be located? –In smaller floor plate buildings
Opportunity Index Numbers represent partial anticipated new space online in the next 10 years Green – Vacancy lower than 12% with a down trend Yellow – Vacancy 12% - 15% with up trend Red – Vacancy greater than 15% with up trend
For a copy of the Opportunity Index, or more information www.AustinMcGuire.com See client section
Your consent to our cookies if you continue to use this website.