As the national economy continues its slow recovery, and we begin the New Year, we are still plodding along the bottom of the office space market in the Lower Fairfield County region. Attractive rental rates, generous amounts of free rent and large tenant improvement allowance continue to exist in today’s market, although on a building-by-building basis.

In Stamford, the following buildings should influence the market significantly:

• 695 East Main Street: With Building & Land Technology’s recent purchase and planned extensive renovation of the building we expect leasing activity to commence and continue throughout the year.

• Harbor Plaza – 181, 208, 232, 250, 262, & 290 Harbor Drive: With George Comfort & Sons recent purchase of the complex we expect an aggressive marketing campaign and extensive renovations to the complex with over 440,000 square feet available in buildings 181, 208, 262, and 290. Look out for several deal announcements in 2012.

• 1 and 2 Harbor Point: These buildings are well-positioned for some robust activity as they are the only brand-new buildings in the area and will benefit from the continued development of the South End that also includes new residential development, restaurants and retail.

• 3001 Summer Street: The building has undergone an extensive renovation in 2011 and is well-positioned to land some significant deals in 2012.

Buildings within a half mile of the Greenwich and Stamford train stations enjoy a lower vacancy rate than the balance of the respective markets and were the first market segments to tighten.

The first half of 2012 remains an excellent time for tenants who are searching for new office space or negotiating renewals to secure attractive short- and long-term lease positions offering flexibility via expansion, contraction, renewal and cancellation options. We predict, however, a tightening in some markets and on a building-by-building basis, with fewer incentives available as we move through 2012.

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