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Market Report

New Haven-Fairfield County Office Market Report

2024 Investment Forecast

Market’s Eastern Half Contends with Supply Increase;
Mid-Tier Segment Logs Solid Performance

Supply injection less daunting than at first glance. As of late 2023, the amount of yet-unleased traditional office space underway totaled just over 306,000 square feet. Though this exceeds any annual development figure since the onset of the health crisis, the unleased space is divided between just two projects — located in New Haven proper and Fairfield County’s eastern border, respectively. This should help insulate existing Class A properties in Stamford, Greenwich and nearby municipalities from incoming supply pressure. On a less positive note, the collapse of Silicon Valley Bank will have long-term implications for lab-oriented developments around New Haven, as the institution was a major funder for Yale-linked biotechnology startups. Compounding this, tenants have also been exiting amenity-rich leases marketwide, contributing to rising Class A vacancy last year while the mid- and lower-tier measure held constant. Class B and C vacancy is likely to remain below its historical average of 13.3 percent for the foreseeable future, due to a solid base of smaller financial and legal firms located across the market.

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