If You Build It, They Will Lease

There is nothing more frustrating than seeing economic growth still chugging along in Stamford and New Haven, buildings going up in the same time period that our projects stay in limbo. From the newstimes thanks to a reader…

A Norwalk-based developer of Stamford’s Harbor Point project has started 2010 by bucking the commercial real estate downturn and signing new tenants for three of its Stamford office buildings.

Building and Land Technology added Guess? Inc., First American Title Insurance Co. and Ipsogen Inc. to its buildings at Stamford Landing, 600 Summer St. and 700 Canal St., respectively, and is building out space for them at all three locations.

The three leases come after Fairfield County’s new leasing activity for Class A and B office space totalled only 1.8 million square feet in 2009, compared with annual averages of 3.5 million square feet from 2005 to 2007, according to a year-end 2009 report issued by Cushman & Wakefield.

The report revealed that the overall available Class A space in the county rose to 6.4 million square feet in 2009 from 4.8 million square feet in 2008.

Guess, the national fashion retailer, has leased 4,500 square feet of office space on the second floor of One Stamford Landing and will move one division into the new quarters early this year, while First American will relocate from 1150 Summer St. in Stamford to 600 Summer St., where it will occupy 3,712 square feet on the sixth floor.

Ipsogen, a medical diagnostics company specializing in molecular diagnostic products and services for cancer testing, will take an additional 4,200 square feet at 700 Canal St.

“Each tenant came to us with very specific design and performance requirements unique to their industries,” Lori Baker, leasing director for Building and Land Technology, said in a statement, “and in all three cases the broad range of our offerings, together with the responsiveness of our team, made it possible to provide highly individualized solutions on a quick turn-around basis.”

Hilarie Siles, executive managing director of Newmark Knight Frank, introduced Guess to the four-building Stamford Landing complex and its views of the West Branch of Stamford Harborafter a broker event there. The complex is in the city’s enterprise zone.

Guess is locating its international jewelry headquarters in the space and is temporarily at 2 Stamford Landing.

“The Stamford Landing space incorporated all the elements that Guess was searching for, in particular a stimulating and creative work environment,” Siles said.

Located a half mile from the Stamford Transportation Center, each Stamford Landing building has its own power generator, office suites with loft spaces, skylights, vaulted ceilings and shuttle services.

First American is moving to the former headquarters of GE Capital after the building underwent a recent multi-million dollar renovation that included new windows, an updated heating, ventilation, air conditioning and building management system and upgraded elevators, lobbies and restrooms.

A provider of title and settlement services to the real estate industry, First American was focused on finding a location with convenient access to the city’s central business district and major highways, said Charles Hanna, vice president at First American.

Ipsogen, based in Marseilles, France, moved its U.S. headquarters from New Haven to Stamford in 2009.

Ipsogen searched greater Stamford for a new location after Marseilles authorized it to expand, but opted to keep its products and services divisions in the Canal Street building when Building and Land Technology was able to configure new space.

“The key for Ipsogen was the ability to put together a package quickly in a space that could be tailored to meet their specific needs,” said Adam Klimek, associate director of Cushman & Wakefield, which represented Ipsogen. “Within three weeks, BLT was able to gain necessary city approvals, negotiate the business terms and get a signed lease.”

The building, one of four structures that make up Stamford Harbour Square in the city’s enterprise zone, is adjacent to the Harbor Point development and the former Yale and Towne factory, which is undergoing a conversion into loft-style apartments, public open space, 15,000 square feet of retail space and a Fairway Market grocery store.

“The location’s unique historic character and extensive amenities, as well as proximity to the railroad station and New York airports, were particularly appealing to us,” said Susan Hertzberg, chief executive officer of Ipsogen.

  • parklover

    These businesses could have been moving into 95/7, if it hadn’t been delayed for 4 years by the Maritime Motors lawsuit (remember the guy who bought the place 10 years earlier, knowing it was in the path of a redevelopment project, then held the city hostage, lost his lawsuit when the jury found out he knew it was going to be redeveloped when he bought it, and got his 8 million bonus anyway?) Sound familiar?

    This project, if completed earlier and filled up, even partially, may have increased our grand list by enough to offset any tax increase this year. Oh well…

  • NorwalkSpectator

    I’m not so sure about how quickly the office space would be leased. I have to frequently drive up and down Riverside Avenue in Westport and there are at least two major office buildings that have vacancy signs out for the last two years. I’d be interested in finding out how much of the Merritt 7 Complex is occupied, or even 50 Washington Street. One of the key things that I have heard regarding real estate is the mantra of “Location, location, location”. Don’t know how true that is, but all the realtors I know swear by it.

    While Maritime Motors may have gummed up the works for a period, I also think that the financing portion of the 95/7 played an important role. While I am not involved in Planning and Zoning or construction or anything to do with those spheres, I can say that I personally know of two major projects that came to a screeching halt when Lehrman Brothers went down. And that may not neccesarily be a bad thing. One of the plans I saw for 95/7 was at least six stories tall and I’m not real sure that we have the economic engine to support that big of a project. I heard someone else say the developer has scaled back the project, which means the project is more manageable and sustainable.

    • turfgrrl

      NorwalkSpectator: In addition to location, location, location, there is also other stuff that drives the lease out of office space. If you were starting a tech company where would you want to be? Forget the easy answer, with other tech companies. Instead think about what you’d need, a building that was on a good grid, uninterruptible power, internet, low operating costs, in other words economical to heat and cool. You’d want someplace that your workers would want to spend their 60-80 hours a week working at. They would be able to get food and stuff delivered at all working times. You’d want a pool of workers who could do the work nearby so you could grow. You’d want to be able to sell your tech product or service to people around you. Where would you put your tech company in Norwalk?

  • Secondhand Rose

    Haven’t we been hearing for years about the glut of unrented available office space in this town? One of the primary reasons that 95/7 is not wanted is specifically because of all the available office space that currently exists all over town.

  • It’s Politics…

    When you have Bob Duff coming out against his own hometown and holding up redevelopment…you know were in big trouble. Stamford gets things done. Norwalk can’t get out of its own way. There are many bright people with great ideas here in town, but for some ongoing reason, the not-so-brights keep getting in the way. Oh well. I hope you all enjoy your high property taxes while you keep complaining about the developers. Peace out.