With lease renewals and extensions dominating the market, it was more of the same for Hartford County’s office market in the fourth quarter. Availability and vacancy rates stayed fairly stable and 30,901 square feet were absorbed in the quarter, according to information provided by CB Richard Ellis.
But the quarter also was marked with some good news for commercial real estate agents.
Colliers Dow & Condon worked on two significant transactions. Colliers brokers Jay Wamester and Nicholas Morizio represented Grunberg Realty in the purchase of a 29-story, Class A, multi-tenant office building in downtown Hartford. Grunberg bought the building at 280 Trumbull St. for $65 million in October.
The firm also had a hand in the relocation of Genworth, a General Electric Co. subsidiary, from Enfield to Windsor.
“We had some smiles on our faces,” said James Stanulis, a principal at Colliers Dow & Condon in Hartford.
Methodical Market
Overall, the year-end numbers were marginally better than 2003’s in terms of office vacancies. They were 1 or 2 basis points below numbers at the end of 2003, according to Stanulis. But sublease space still made up about 11 percent of available space, he said.
But even the small improvements were welcome. Hartford County’s market generally does not rebound or change quickly, Stanulis said.
“We move slowly and methodically,” he said. “Any improvement is always welcome improvement.”
The central business district in the city of Hartford saw most of its activity come from lease renewals and expansion, according to CB Richard Ellis. The law firm Halloran & Sage renewed about 50,000 square feet at 225 Asylum St. But some new players came into the market, with insurance companies like Quanta Capital leasing space at One Financial Plaza.
Also in the fourth quarter, a large block of office space became available at 777 Main St. for the first time in 20 years. Fleet Bank (now Bank of America) sold to American Financial Realty Trust and leased back much of the building, but left 92,544 square feet of office space, according to CB Richard Ellis.
The western part of Hartford County attracted some new business in the fourth quarter. Chubb, a division of United Technologies Corp., leased 28,000 square feet at 9 Farm Springs Road in Farmington and Beazley USA Services leased 5,200 square feet at Farmington Mountain Office Park.
There was also some relocation in the eastern part of the county, creating 45,158 square feet of positive absorption, according to CB Richard Ellis. The state Department of Mental Retardation relocated from 270 Farmington Ave. in Farmington to a 36,000-square-foot space at 155 Founders Plaza in East Hartford. The fourth quarter also saw 111 Founders Plaza in East Hartford become 99 percent occupied with new leases.
Stanulis said he hopes 2005 will bring positive changes to Hartford County’s office market.
“We’re hopeful we’ll have a more sustained level of leasing activity,” he said.
More job creation would fill up some vacant space. The vacancy rate is now just under 20 percent. When it gets to 11 percent or 12 percent, Hartford will see some new construction, according to Stanulis.
