Dean Shapiro, executive director of Insignia/ESG's Westchester/Connecticut office, said, "New Haven business is clearly driven by strong biotech and pharmaceutical companies, core, traditional businesses and secure new economy firms. Though these companies have been affected by the uncertain market climate, they have the financial and management base to withstand the forces, and that translates into a generally firm real estate market."

Availability remained at near historic lows at 1.8 million sf countywide at mid-year 2001 The office availability rate for New Haven County stayed relatively stable, rising just a half a percentage point to 15.6% as compared to June of last year. Rents continued to rise--2% as compared to June 2000--at $18.73 per sf countywide. On the other hand, leasing velocity plummeted 42% to 383,850 sf in the first six months of this year.

Insignia/ESG officials blame the decline in demand to the hesitation by area corporations to spend capital on real estate. In fact, while the New Haven County area did not see the large amount of space returned to the market as other areas across the country have so far this year, the number of transactions fell sharply countywide as compared to a year ago. Insignia reports that just 44 office transactions were completed by the end of the second quarter 2001, down from 69 last year. Verizon Communications' 48,690 sf deal at 599 Research Parkway in Meriden was the largest lease so far this year in New Haven County.