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Bolstered by the Greenwich office and retail markets, the Fairfield County commercial market completed 2023 on "a generally positive note," according to the Houlihan Lawrence Fairfield Commercial Market report released on Tuesday, Feb. 6.
According to the report, Greenwich retail rental rates ended 2023 at the best levels ever seen in late Spring. Greenwich office occupancy and lease rates remained remarkably stable over the second half of 2023.
However, the greater Fairfield office market is showing occupancy and lease price weakness. Vacancies are now over 16 percent and rents have declined over the last two quarters, the report showed.
Overall, commercial real estate investment sales across property types are weak, the report said.
“Fairfield’s economy has been historically propelled by service industries and continues to be in the sweet spot for growth and employment," said Garry Klein, managing director, of Houlihan Lawrence Commercial Division.
Klein said the entertainment and hospitality industries, severely punished during the Pandemic, have made a forceful comeback.
"This, in turn, has provided a rebound in activity and an improved outlook for many retail properties in Fairfield County and in other areas that enjoy the presence of a high disposable income population,” he added,
However, overall, Klein said commercial real estate investment sales across property types are weak.
"A thawing of the transaction market is now in sight as there is increased confidence that the Federal Reserve will succeed in taming inflation, the interest rate hiking cycle has likely ended, and that rate cuts are probable for 2024.”
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