Economy: U.S. Labor Market Remains Resilient as Fairfield County Conditions Soften
During the third quarter of 2026, U.S. nonfarm payrolls increased by approximately 473,000 positions year-over-year (YOY), while the national unemployment rate declined 20 basis points (bps) to 4.2% in September 2026. In Fairfield County, employment contracted by roughly 31,000 positions, or 6.2%, from Q3 2025, while the local unemployment rate rose approximately 80 bps to 4.7%. Overall, national labor market conditions remained comparatively resilient through the third quarter of 2026, while Fairfield County continued to exhibit softer employment conditions and a widening divergence from the national trend.
Supply & Demand: Leasing Edges Higher as Vacancy Tightens
Fairfield County’s office market showed mixed fundamentals through the first three quarters of 2026, as modest YOY leasing growth and a tightening vacancy rate were offset by a sharp pullback in occupancy gains. Year-to-date (YTD) leasing activity totaled 1.2 million square feet (msf) through Q3 2026, an increase of 1.1% YOY—though volume remained 10.2% below the five-year YTD average of 1.3 msf. At the submarket level, Stamford was the primary driver of countywide leasing, recording 570,856 square feet (sf) of YTD transactional volume, up 45.0% YOY. In contrast, South Central Fairfield posted 155,681 sf, a 39.2% YOY decline. By class, Class A leasing rose 8.1% YTD, while Class B contracted 23.0%.
The overall vacancy rate fell to 25.8%, down 97 bps YOY and 300 bps below the five-year average. Sublease vacancy also declined, contributing to the overall improvement. Stamford’s overall vacancy improved 162 bps YOY to 27.4%, while Central Fairfield registered the lowest vacancy in the County at 10.0%, down 221 bps YOY. At the other extreme, South Central Fairfield remained the softest at 37.8%, up slightly YOY.
Net absorption softened considerably, with the county posting negative 182,117 sf in Q3 2026, a reversal from positive absorption in the prior-year quarter. This brought YTD absorption to just 26,891 sf, well behind the 662,413 sf recorded a year ago and the five-year average of 263,139 sf. Eastern Fairfield was the lone bright spot among the larger markets with positive YTD absorption, while Stamford and South Central Fairfield both recorded notable negative absorption in the quarter and YTD.
Pricing: Average Asking Rents Inch Up as Greenwich Leads and Class A Outperforms
Countywide overall average asking rents reached $35.39 per square foot (psf) in Q3 2026, rising a nominal 0.9% YOY and holding 2.7% above the five-year average. Class A asking rents averaged $37.83 psf, up 1.2% YOY. Greenwich led the market at $53.12 psf, up 13.1% YOY, while in the Greenwich CBD, rents were substantially higher, averaging $98.51 psf, up 9.3% YOY and 3.3% above the five-year average.
