Office occupancy rates have declined 2 percent in the Bridgeport-Stamford-Norwalk area since early 2020 and the region now has the third-highest vacancy rate among top U.S. metros at nearly 28 percent.

The data from debt researchers Trepp shows that a hoped-for exodus of New York City office tenants to suburban markets has failed to materialize as a result of the COVID pandemic.

Only Kansas City and the Washington, D.C. metro areas have lower office occupancy rates among the 25 metropolitan statistical areas with the largest exposure in CMBS loans for office properites, according to Trepp.

The region’s poor performance comes despite a broader suburban migration in many U.S. markets noted by Trepp in a research report this week.

“De-densification and an exodus out of urban cores became the norm, driven by employees fleeing to the suburbs and relocating to areas with cheaper living costs,” Trepp researchers wrote.

Cushman & Wakefield previously reported that Fairfield County office vacancies hit an all-time high of 30.9 percent in the first quarter.

According to Trepp, the recovery will favor high-end properties located close to major transportation hubs, while outdated properties will continue to struggle.

“Firms on the hunt for new office space will prioritize class A options featuring up-to-date amenities that will make it worth the trip for employees,” the report states.

As the economy reopens throughout 2021, the adoption of hybrid work models will suppress absorption rates and property values in the short term. But the prospects are widespread abandonment of office work models or the decline of global gateway cities is unlikely, Trepp said.

“Younger employees jump-starting their careers still broadly prefer to engage with colleagues in-person and major urban cores,” Trepp wrote.