The second half of 2017 was a good one for Fairfield County. Third and fourth quarter leasing significantly outpaced the first half, ending the year with over two million sq. ft. of activity. This increase managed to chip away at the large negative absorbtion created during the first half of the year. In fact, Q4 alone contributed 178,873 sq. ft. of positive absorbtion.
Much of this came in leasing gains from financial-services tenants. In turn, availability rates saw a 50 basis point drop since the third quarter, ending the year at 24%. Additionally, average asking rents in the market saw a slight drop to $31.59 to close out 2017.
That activity reflects a regional trend whose origins lay in Manhattan and, as noted in quarter three, the sector's rise there historically correlated with increases in the nearby suburban markets. So, in Q4 2017, Manhattan had its most financial-services leasing year since 2003, the trend was reflected in Suburban Fairfield County, where the market recorded approximately 1.5 million sq. ft. of leasing activity among financial-services firms.