Prudential Retirement new office tower?

[beerbeer]

It's a safe bet that Providence and Portland have much less total office space than Hartford. I wouldn't be surprised if Hartford has two or three times the total amount of space as those cities. Those vacancy rates are probably very low because there just isn't that much around.

[SOCOM]

It's a safe bet that Providence and Portland have much less total office space than Hartford. I wouldn't be surprised if Hartford has two or three times the total amount of space as those cities. Those vacancy rates are probably very low because there just isn't that much around.

That's a good point. Hartford has close to 11 million sq. ft. in it's CBD alone, which is larger than San Diego and Honolulu and on par with Indianapolis.

Hartford's relatively high vacancy rates (15-20%) can be largely contributed to some of its aging office buildings such as the BoFA tower and the Stilts building. The Stilts building is over 300,000 sq.ft. and almost entirely empty, and the BoFA tower is about 50-60% vacant last I heard. We need to either renovate these buildings or turn them into residential.

http://www.urbanplanet.org/forums/index.php?showtopic=6186

[GregV]

Trust me, those figures are right and they are not looking very positive. The 15%-17% range is roughly where we've been for the last 5 years in terms of Class A space in Hartford. Here are the updated figures from Torto Wheaton Research:

Hartford had a vacancy rate of 18.1% in 2005, projected to increase to 18.8% and 19.0% in '06 and '07, respectively. This is compared to the historical average (1980-Present) of 13.4% (the early/mid 80s were very good to Hartford office). The national average vacancy rate is 13.6%, much lower than Hartford's and improving faster. 11-12% is considered healthy/strong.

The Hartford MSA is the 47th largest in the US, with the cost of doing business 9% above the national average. The short-term forecast shows positive growth in office workers through 2007, but with with net absorption forecasted to be negative 178,000sf.

Over the past 5 years employment has declined at an average rate of 0.6% per year, whereas nationally this figure has increased 0.3% per year. Employment is forecasted to grow 0.5% in the next 5 years, however Hospitality and Transportation & Warehousing sectors will show the strongest growth, which does not help office demand much.

Office employment has fallen 1.3% over the last 5 years, but over the last year it has increased 0.7%.

It may not seem like a big difference, but believe me to an office investor/developer the gap between 9% or even 14% and 18% for vacancy rates is huge. As others have mentioned, the stilts is nearly empty and BofA (which may see a partial condo convert however) is also in bad shape. At this point, adding more supply to Hartford would cannibalize space from other buildings, increasing the vacancy rate further, putting downward pressure on rents and making Hartford less attractive to developers and investors, but potentially more attractive to employers, if only there were employers looking at Hartford.

What we really need is residential, a market which has dramatic pent-up demand. Then (hopefully) employers will find Hartford attractive enough to take a gamble.

[beerbeer]

There are lies, damn lies and statistics.

Office space numbers are broken different ways, the number you call Hartford could be downtown (sometimes called core city) or Hartford proper or the metro area. In fact it could be one of any number of metro areas as defined by who is doing the stats.

According to AC Neilson Hartford is the 27th largest SMSA in the country but that includes New Haven.

You really have to carefullly define you stats for them to have any meaning.

[GregV]

You are absolutely right about statistics. This is why I never trust them from any but the most reputable and disciplined of sources.

In this case the MSA encompasses, precisely, Hartford, Middlesex and Tolland counties in Connecticut.

[ctman987]

GTECH is an instate move, they're currently in the 'burbs. They were looking to expand and looking to move to Massachusetts, they got a sweetheart deal from the state to relocate to Providence.

Is GTECH's current headquarters that red brick building I see off of I-95 heading back towards CT from Rhode Island? Will they be vacating that building after they move to Providence?

[Cotuit]

Is GTECH's current headquarters that red brick building I see off of I-95 heading back towards CT from Rhode Island? Will they be vacating that building after they move to Providence?

It's right on Route 95 and has a bunch of flags outside. I think there is one building they are keeping, but they have a huge amount of land they are going to sub-divide and sell off.

[malikr65]

Does anyone know if Renaissance Place is still an option or is that idea dead?

[MadVlad]

Pretty sure that's dead.

[drc72]

Pretty sure that's dead.

Unfortuantely most likely.

[Richhamleigh, DC]

15% - 17% is a very low vacancy rate for any city in America. Hartford had the lowest vacancy rate in the country in the early 80s with a vacancy rate of 13%. I think your numbers are wrong.

I think it's still pretty high. Compare that vacancy rate to Charlotte's - currently the lowest in the country - at 4.9%

Collier's Pinkard Reports

[drc72]

That's a good point. Hartford has close to 11 million sq. ft. in it's CBD alone, which is larger than San Diego and Honolulu and on par with Indianapolis.

Hartford's relatively high vacancy rates (15-20%) can be largely contributed to some of its aging office buildings such as the BoFA tower and the Stilts building. The Stilts building is over 300,000 sq.ft. and almost entirely empty, and the BoFA tower is about 50-60% vacant last I heard. We need to either renovate these buildings or turn them into residential.

http://www.urbanplanet.org/forums/index.php?showtopic=6186

The Stilts building looks like prime office space. I'm surprised that they are not able to get a major company in there?

[Luca Brasi]

The Stilts building looks like prime office space. I'm surprised that they are not able to get a major company in there?

Its not. Its been downgraded to class B office space. The present owners are speculators who have no intent of upgrading or even maintaining the building which is why everyone has left and the building lost its class A status about two years ago.

[drc72]

Its not. Its been downgraded to class B office space. The present owners are speculators who have no intent of upgrading or even maintaining the building which is why everyone has left and the building lost its class A status about two years ago.

Are the owners planning to sell it, since they have no interest in fixing it up?

[MadVlad]

Yeah, their MO is to buy and just sit on property and try to make a killing, like that isn't everyones plan. However, this company, not sure the name, has a track record for letting their properties just waste away...

[drc72]

Yeah, their MO is to buy and just sit on property and try to make a killing, like that isn't everyones plan. However, this company, not sure the name, has a track record for letting their properties just waste away...

That's very sad. I would hate to see the Stilts building removed from the skyline.

[jcrc]

Yeah, their MO is to buy and just sit on property and try to make a killing, like that isn't everyones plan. However, this company, not sure the name, has a track record for letting their properties just waste away...

Aren't they the same people who own Bond Hotel? I noticed there are some works being done at Bond Hotel recently, and some portion of the place is being use for catering events.

http://www.bondballroom.com/

[MadVlad]

I don't think it's the Bond (though i could be wrong), I believe they owned 410 Asylum and got into a big fight with the city on how to properly utilize the property...

[jcrc]

I don't think it's the Bond (though i could be wrong), I believe they owned 410 Asylum and got into a big fight with the city on how to properly utilize the property...

Just checked, Stilts and Bond are own by the same person. "The building is owned by Edwards Development LLC, a company headed by investor and property owner Robert Danial. Danial also owns the Stilts Building, the Holiday Inn Express and the Bond Hotel on Asylum Street, as well as some downtown apartment complexes."

http://www.hartfordinfo.org/issues/documen...rant_020206.asp

410 Asylum was owned by a couple in Stamford who wanted leveled the building to put a brand spanking new parking lot. When City of Hartford prevented the demolition, in a tiff, they donated to Common Ground to convert the building into homeless shelters.

http://www.commonground.org/org_info/media...HarfordCourant/

[MadVlad]

Thank you for the correction.