Greenwich, Norwalk, Stamford and Westport retail continues to strengthen - by Andreas Senie

Andreas Senie, EAC Properties

Rent increases as vacancy rates decrease. More and more businesses are moving north into the Greenwich, Stamford and Westport markets decreasing vacancy, driving up rents. These markets are becoming more attractive as consumers are able to travel faster, at times at the speed of a mouse click.

Business that used to rely on “Main St.” addresses now rely on Yelp which gives them the opportunity to seek “off Main St.” locations in previously unaffordable markets, driving overall vacancy down, providing more options to consumers, and inevitably driving Main St. pricing up and overall average of market rates up. Forward thinking developers and new construction deliverables incorporating open-air food/fashion/fun/furnishings/functions tenant incentives coupled with experience or “make a day of it” amenities, are being readily delivered into these markets.

Forty years ago you had the enclosed malls, then we saw it go to big box power centers to open air lifestyle centers. Now larger discount department store anchors are being replaced by other smaller anchors.

Omni channel retail tenants like Amazon, that provide seamless Internet experience to in store pickup are moving into markets. Brick and mortar locations are essential for online business and vice versa, as is becoming clearly evident in today’s retail industry. Original thoughts that the Internet would hurt retail brick and mortar business has proven false overall. Retail tenants do have to adapt and be omni channel retailers (seamless integration of website, brick and mortar, shipping), not simply multi-channel (having a website, a store, and advertising).

Developers making plans to allow for that seamless experience are being rewarded handsomely and filling their vacancies. Mixed-use developments, ease of access, and experience are also driving retail users into these new developments as they are “building in” their consumer base, by providing those businesses the residences and population to use those consumer goods and services.

Andreas Senie is managing partner, broker at EAC Properties, Fairfield, Conn.