Experts Cautiously Optimistic—

Economic Development Outlook: Housing Market Slow, Not Dead

STAMFORD — Area experts in economic development and commercial real estate recently gathered at the 2nd Annual Fairfield County Outlook to discuss current trends and predictions for 2008. Hosted by the Connecticut Business and Industry Association (CBIA), the Connecticut Economic Resource Center, Inc (CERC), and the Stamford Chamber of Commerce, the conference was held at UConn Stamford and provided attendees with a snapshot of the current real estate market and a glimpse into the future.

A brokers’ panel of local real estate executives gave insights for the coming year, and their overall outlook was simple: proceed with “cautious optimism.”

Looking at 2007 year-end numbers, James Fagan of Cushman & Wakefield’s Connecticut office expressed that the market was strong in the first half, but then shifted from sales of buildings and lots to leasing, with a market extremely “hot” around transportation centers, like Stamford’s metro station. Joel Hausman of Colonial Realty is expecting the same trends to continue, with development projects in areas like Bridgeport and Trumbull, which were strong markets in Fairfield County this past year.

According to Louis Zuckerman of GVA Williams, Fairfield County remains strong in the consumer-driven retail market, and the high-end retailers are strongest. He noted, however, that weak consumer sales are the cause of a more cautious approach by retailers to open stores in the area, while growing the due diligence of landlords.

Many landlords are choosing retailers whose business plans will fit with the long-term strategy of the municipality or city, creating economic stability, stated Mr Zuckerman.

In addition to retail, investment, pharmaceuticals, and film remain “hot” industries in Fairfield County, according to Beth Chappel of CB Richard Ellis and Mick Consalvo of Tower Realty, not to mention the demand for waterfront developments. Overall, Fairfield County brokers are entering 2008 with the “cautious optimism” that 2007 trends will continue through the year.

Other topics covered during the conference included a CERC SiteFinder update and a green panel that focused on current trends in LEED certifications and the benefits of going green. In addition, keynote speaker Kenneth McCarthy, managing director of research of the New York metro region for Cushman & Wakefield, spoke about the economic outlook of the tri-state area, explaining that “while we’ve seen a slowed economy, our workforce is still strong, providing a chance to avoid a recession.”