STAMFORD, CT—A survey conducted by JLL and the Business Council of Fairfield County, the 2014 Fairfield County Business Climate Survey, reveals that 64% of respondents see a favorable climate for their industry while 68% believe their industry is growing.
While survey responses were mostly optimistic, participants indicated that challenges remain. Access to talent was cited as the top challenge in the county, while 25% pointed to cost of living as a major consideration.
“The purpose of this survey was to gain some insight into the business community's outlook for their various industries and for the region as a whole,” says Robert Ageloff, international director and head of JLL's CT/Westchester office. “Business sentiment is largely positive, indicating the potential for additional economic advancement and increased activity in the real estate sector.”
Approximately 74% of respondents saw the overall business climate in Fairfield County as neutral, with minimal growth anticipated but little danger of the local economy retracting. When drilling down to their respective industries, however, about 64% of participants thought the climate for their specific industry was favorable and around 68% believed their industry was growing. In addition, more than 75% of respondents said their companies are in growth mode. Transportation and cost of living were highlighted as impediments to attracting talent to the area.
In terms of company plans over the next year, 70% of respondents noted their firms are planning to grow, 26% will maintain the status quo and 4% expect to contract.
Although many of the participants are planning to expand during the next 12 months, that may not translate into leasing more space due to ongoing efforts to increase the efficiency of their existing space. Approximately one-third of survey respondents expect their company's space needs will increase over the next year. Around 55% of participants projected an increase in headcount, while 45% saw no change.
Meanwhile,most survey participants were pleased with the value of their current space. More than half, about 57%, thought their office space was efficiently used, while 24% believed the space was under capacity and 19% thought it was over capacity.
At least half of the respondents thought they were paying market rates for their space, while 23% believed it was over market and 27% saw it as under market. About 59% of participants thought office rents were unchanged from one year ago while 41% saw it as higher.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Rayna Katz
Rayna Katz is a seasoned business journalist whose extensive experience includes coverage of the lodging sector, travel and the culinary space. She was most recently content director for a business-to-business publisher, overseeing four publications. While at Meeting News, a travel trade publication, she received a Best Reporting award for a story on meeting cancellations in New Orleans during Hurricane Katrina.
