Fairfield County market recovery begins to accelerate.

The recovery of Fairfield County's office market gained momentum In the first quarter of 2006 as the ongoing economic uptick, fueled by a steadily advancing stock market and relatively stable consumer spending, created an atmosphere of confidence.

Demand remained consistent or surpassed last year nearly all over the area. while space returns continued to Slow. resulting in positive absorption and lower availability compared to the same period of 2005.

Much of the demand came from local expansions, as the caution that influenced corporate decision-making in the past few years continued to fade in the face of the economy's growth.

Planning for the future came. to fruition more often, especially for financial service companies which once again served as one of the market's major drivers.

Leasing remained on par with last year's levels despite fewer completed transactions--127 compared to 134 in 2005--at 1.0 million square feet.

The increased corporate confidence also resulted in a significant slowdown in space returns, especially in the City of Stamford.

This, combined with the steady leasing, led to positive absorption of 304,580 s/f countywide thus far compared to 149,380 s/f of negative absorption in "the first three months of last year.

Availability countywide fell 10% to 6.7 million quare feet and the availability rate almost two percentage points to 15.2%--its lowest first quarter level in five years.

In response to the improving market, landlords raised rent in many key properties, boosting overall average asking rent $1.14 per s/f or 4% over the past year to $28.72 per s/f. This increase in rents. according to Robert Caruso. managing director of CB Richard Ellis' Westchester/ Fairfield office, is another strong sign that Fairfield's office market has really turned a corner. Said Caruso, "Throughout the downturn, competition for tenants centered around aggressive pricing and incentives.

"Landlords are raising rents now because they feel confident in the market's prognosis for the near future. With three straight quarters of strong demand, positive absorption, and lower availability, they certainly have a good basis for their decisions.

"The amount of space leased in large deals has increased each quarter, and most of that activity came from local companies. Given these strong fundamentals, 2006 could prove another year that surpasses historical averages."