John Payne, president of Goodfellow-Ashmore in Danbury, speaks a recent Corporate Facility Advisors conference in Baltimore. Payne said he believes that the current trend of falling occupancy rates and rising purchase prices in the commercial real estate market is about to end.

The current dichotomy of falling commercial real estate occupancy rates and purchase prices may end soon, according to one Danbury-based commercial broker, and the planned expansion of a large local pharmaceutical headquarters might be an indication he is right.

Todd Payne, president of Goodfellow-Ashmore Real Estate Services/CORFAC International in Danbury, said that his view was the prevailing consensus at the recent Fall Conference of Corporate Facility Advisors – CORFAC International in Baltimore attended by independent commercial real estate professionals from across North America, Europe and Asia.

Goodfellow-Ashmore, an independent brokerage firm, is the organization’s representative serving the commercial real estate market in the northern Fairfield and southern Litchfield counties in western Connecticut.

“Several speakers noted that most real estate markets are now at the bottom of their occupancy cycles due to little or no demand growth,” said Payne. “There is a load of pent-up demand. Whenever the economy and global affairs stabilize, we should see a long-overdue recovery.”

One example that lends Payne’s views some credence is the recently announced expansion of Boehringer-Ingelheim Pharmaceuticals, whose large headquarters straddles the Danbury-Ridgefield town line. According to reports from the firm, it currently employ approximately 3,000 people in the area and the expansion could bring another 700 jobs. The expansion was announced on Wednesday, with Gov. John G. Rowland and Danbury Mayor Mark Boughton in attendance.

According to area sources, the company has expressed interest in the now-vacant Union Carbide building in Danbury – the 1.31 million-square-foot former corporate headquarters. Although no lease has been signed, Boughton has said that such a move would be important for the area, and that Boehringer-Ingelheim has been looking at the building.

“Boehringer-Ingelheim’s investment in Connecticut, both in terms of new jobs and capital expenditures, will have an enormous impact on the local and state economies and further strengthen our thriving bioscience cluster,” said Governor John G. Rowland. “Today, thanks to a partnership between the company, the state and our municipal partners, we will all reap the benefits of this important project. I offer my sincere congratulations to the company for this impressive growth and success.”

Boehringer-Ingelheim Pharmaceuticals is planning to expand its facilities at its existing 294-acre campus in Ridgefield and Danbury Connecticut with a building project budgeted at between $400 million and $500 million dollars. The project is expected to create 500-700 new jobs over the next six years.

‘Decisive Step’

According to Sheila Burke, spokeswoman for the company, expansion will likely consist of new laboratories to support research and development in the immunological, inflammatory and cardiovascular areas as well as support functions for medical and administrative departments. The company is moving the cardiovascular research that has been done in Biberach, Germany, to the United States.

“This expansion will mark a further decisive step in the future of Boehringer-Ingelheim in the United States and in the implementation of our intent to grow our research and development activities in America, in line with our company’s vision of continuous growth,” said Alessandro Banchi, a member of the company’s board of managing directors.

“Boehringer Ingelheim Pharmaceuticals has a bright future ahead, with several promising new products on the horizon. As a company, we are positioned to be true leaders in the extremely competitive pharmaceutical arena. The planned expansion of our U.S. headquarters campus is visible proof that we are extremely optimistic about reaching and exceeding our near- and long-term goals,” said J. Martin Carroll, president and chief operating officer at BIPI.

Payne, who said he is encouraged by the Boehringer expansion, also noted that the Baltimore event witnessed the official launch of the new CORFAC International brand, which introduced a blue and red color scheme and logo identification designed to integrate signage, business cards, stationery and other corporate communications tools for all member firms.

“Our new branding strategy was conceived to identify and brand our members under a common symbol of excellence, which celebrates the independence of our local firms while creating a consistent image throughout the world,” stated Payne, who noted that the branding campaign will be a useful tool to help capture business when the market improves.

Payne was also elected as Vice President of CORFAC’s international organization.

Goodfellow-Ashmore has been a member firm of CORFAC since 1998. He also serves as chairman of the new corporate branding initiative and addressed attendees at the recent conference as such.

The branding initiative is aimed at strengthening the unified corporate identity for all member firms of CORFAC International, including Goodfellow-Ashmore/CORFAC International. According to Payne, this effort marks the first time in the history of the 14-year-old association of corporate real estate services firms that such a branding campaign has been created. The new branding initiative is more than a year in the making and encompasses a new logo and graphic identity that can be used in conjunction with each CORFAC International member’s own existing graphics.

The new CORFAC International brand is symbolized by a blue and red C-shaped arc template to be used in the corporate communication of all of their member firms.

According to Payne, the inspiration behind this corporate identity initiative has been the growth of CORFAC International on a global basis. As the organization continued to experience an increase in the number of new affiliates in new markets in the United States and Canada, as well as in Europe and Asia via its relationship with London-based King Sturge, CORFAC International’s leadership determined that having one look, one message and one identity would help reinforce a consistent and recognizable symbol.

Payne said, “As the commercial real estate industry continues to consolidate, independent firms are not just surviving, but thriving in our local markets. This new branding initiative celebrates the local nature of our business and unifies it with an international theme.”

He added, “We see the branding initiative as generating greater success for all CORFAC firms resulting from a greater visibility and recognition, a level playing field with national brokerage firms, a franchise distinction without sacrificing independence, an ability to attract and retain top brokers, an added future worth to the firm’s value and an optimum bottom line.”

Founded in 1989 and headquartered in Arlington, Va., CORFAC is comprised of professionals proficient in a wide variety of services, including brokerage, investments, property management, development and support expertise. Member firms of CORFAC are selected based on their professional integrity, industry leadership and high standards of quality, client service and market knowledge and performance.

In 2002, CORFAC member firms completed more than 6,700 real estate transactions in North America, encompassing 288 million square feet and valued at $5.6 billion.