Fairfield County leasing activity strongest since 2000.

Fairfield County's office market continued its stellar performance during the first half of 2007 with significant increases in expansions and new commitments by major companies. The cities of Stamford and Greenwich took center stage as some of the world's leading financial services firms leased new space or expanded in these areas. Interestingly, out of the 2.1 million square feet of the total activity during the first half of 2007, nearly 39% or 863,000 s/f was leased to this business sector, according to CB Richard Ellis' Second Quarter 2007 Fairfield County Office Market Report. "The Greenwich office market broke the $120 psf mark for the first time ever as financial services firms continued to compete for prime space in the CBD," said Robert Caruso, senior managing director of CB Richard Ellis. "Reaching this benchmark is a testament to the quality of life and talented workforce Fairfield County offers to the financial services industry."

As a result of the robust leasing activity, the market's availability rate declined for the third straight year. In the second quarter of 2007, the availability rate dropped by 1.65 percentage points from the same time last year and now stands at 13.3%. Strong leasing also contributed to a rise in average asking rental rates, which experienced a 22% increase from last year and ended the quarter at $32.99 psf. Industry insiders and those active in investment sales continue to bet that rental rates will maintain their upward movement. Total net absorption during the first half of 2007 was positive at 855,000 s/f

The most active submarkets in Fairfield County during the first half of the year were Greenwich, Stamford and Central, all of which are considered the most desirable suburban office markets in the county. However, the escalating rents in the Greenwich submarket prompted nonfinancial service companies to seek out alternative locations for their office space needs, specifically within the Stamford and the Central submarkets.

Leasing activity in the second quarter was primarily driven by several large and mid-sized transactions. Commitments of over 20,000 s/f made up 1.3 million s/f or 60% of the total 2.1 million square feet leased in Fairfield County.