PRINT JOURNALISM: BECAUSE IT STILL MATTERS. DECEMBER 9, 2019 VOL. 55, No. 49
westfaironline.com
A rendering of The Ridge at Danbury, formerly the Matrix Corporate Center, now being renovated by Summit Development.
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FIGHTING FOR CAPITAL
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SALT APPEAL
RESTAURANT INDUSTRY’S GROWTH SET TO IMPACT COMMERCIAL REAL ESTATE
Market power in 2020 FAIRFIELD COUNTY VACANCY RATE FORECAST TO FALL
BY KEVIN ZIMMERMAN kzimmerman@westfairinc.com
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ommercial real estate in Fairfield County was booming in 2019 and will likely do even better in 2020, according to Jim Fagan, a managing principal of Cushman & Wakefield who oversees its Stamford and Westchester County offices. This is a good thing, he is quick to add, as its vacan-
cy rate remains high. Fagan said it stands at 26.7% but is expected to drop to 23.5% next year as tenants begin to occupy the space they committed to in 2019. That may look encouraging, but there is still plenty of work to be done. Over the summer, it was reported that the office vacancy rate nationwide had fallen to 12.2%, the lowest it had been in 18 years. Fagan said a large part of the problem is workforce
stagnation. “Since 1989, Connecticut has had 1.67 million people in the workforce,” he said. “In 1999, it was 1.67 million. In 2009, it was 1.67 million. And in 2019 it’s the same number. Over that same period you’ve seen a 35% workforce increase in New York and a 60% rise in Austin. “If we had just a 10% growth over those 30 years, or 3% every 10 years — which is not that aggressive — the state of Connecticut’s economy would look much brighter.” Fagan said such growth would fill some 20 million square feet of office space, “so that we’d have a shortage instead of the glut that we have now.” » MARKET POWER
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BY PHIL HALL phall@westfairinc.com Restaurants account for 17% of U.S. retail sales, more than any other retail sector and restaurant sales growth has outpaced overall U.S. retail sales gains in recent years, according to the new CBRE report “2019 Food in Demand Series: Restaurants.” But while the continued expansion of this industry shows no signs of abating, changes in how restaurants operate could have an impact on commercial real estate. “While restaurants are less vulnerable than other retail categories to e-commerce encroachment, they’re still going through
dramatic changes driven by advancements in technology and changing customer tastes,” said Meghann Martindale, CBRE’s global head of retail research. “Retail-center owners will need to invest a lot of thought into which type of restaurant concept best fits their center and its clientele, as well as how to balance their center’s mix of food and beverage so that it doesn’t tip too far in any direction.” Among the changes impacting the restaurant industry is the proliferation of third-party delivery services, including Grubhub, Seamless, Eat24 and DoorDash, which had a 58% share of the meal-delivery » RESTAURANTS
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