Downtown office vacancies

While Arulampalam sets a focus on the neighborhoods, it is likely downtown office vacancies will still command a lot of his attention.

In 2023, downtown Hartford saw office vacancies the highest since the devastating downturn of the late 1980s, coming in at about 33%, according to commercial real estate services firm CBRE.

Last year marked the third straight year in which office tenants shed more space than they leased, John M. McCormick Jr., executive vice president at CBRE in Hartford, said.

McCormick said it is expected vacancies will rise to 37% this year, again with more space given up than taken.

The downsizing of office leases — seen not only in Hartford but across the country — come as pandemic-era working from home, either full or part time becomes part of the national economic culture.

Even so, CBRE said there is a bright spot: Hartford saw a 10th straight year of relocations from the surrounding suburbs, with expansions and relocations downtown.

Arulampalam said office vacancies downtown is the biggest challenge facing Hartford. The office towers contribute mightily to the city’s property tax coffers and have long contributed to work week vibrancy and patronage at restaurants, bars and other businesses.

The pandemic showed how dependent downtown is on its offices, despite the addition of apartments since 2013. Bronin called for even more: 5,000 in the coming years.

Arulampalam said his administration already is talking to landlords, potential tenants and business recruitment partners in the community.

“We are talking about potential alternative, creative uses of that space,” Arulampalam said. “We are throwing everything we can at it to try to get that space built. It’s really important. It’s a priority for the city.”