One Financial Plaza, also known as "The Gold Building", in downtown Hartford. Photo courtesy of Sun Life
A Hartford insurance firm is expanding its footprint downtown by 33 percent in the iconic Gold Building, welcome news at a time when the city’s office market is struggling.
KKR subsidiary Global Atlantic Financial Group, which offers retirement and life insurance products for individuals and institutions, is adding new employees and leasing an additional 11,500 square feet, Gov. Ned Lamont announced this week. The deal means the company will occupy the entire 10th and 24th floors of the The Gold Building at One Financial Plaza in downtown Hartford totaling 46,000 square feet, and it marks the company’s second Hartford expansion in the last four years.
“The expansion of our presence in Hartford, one of the premier insurance markets in the United States, is a testament to Global Atlantic’s growth and position within the insurance industry,” Dan O’Shea, chief administrative officer for Global Atlantic, said in a statement provided by Lamont’s office. “We are proud to continue expanding in a state with such a diverse talent pool and vibrant community and appreciate the support of the Connecticut Department of Economic and Community Development.”
The move is supported by up to $695,640 in grants in arrears from the state Department of Economic and Community Development that are contingent on the company creating and retaining 100 full-time jobs over seven years. It’s also the second high-profile lease signed at The Gold Building in recent months, with Sun Life recently relocating its 450-person office to the building from Hartford’s suburbs.
Lamont and Hartford Mayor Luke Bronin cheered the move in separate statements, with Lamont’s nominee for DECD commissioner, Alexandra Daum, pitching the company’s decision as evidence of Hartford’s appeal to companies in the national and global insurance spaces.
“Since moving to downtown Hartford four years ago, Global Atlantic has seen a significant growth in its business and its employment levels,” Lamont said. “Now, as this renowned insurance company that has offices all throughout the country is looking for a location to expand, they’ve decided that Hartford is the best place to support this growth. I congratulate Global Atlantic on their decision to invest and grow here, and I look forward to strengthening our partnership with this company for years to come.”
“We’re proud and thrilled that Global Atlantic will be growing their presence here in downtown Hartford. This commitment is a powerful indicator that, as we emerge from the pandemic, companies are seeing the opportunity and growth potential here in downtown Hartford,” Bronin said. “I’m grateful to Governor Lamont and his team for helping to support Global Atlantic’s growth in Hartford, as they added 75 jobs in Hartford last year and look to add even more this year. We look forward to welcoming the new Global Atlantic employees to downtown, and we look forward to Global Atlantic’s growth as an important part of Hartford’s insurance ecosystem.”
However, the picture for Hartford’s office sector remains grim. Over 350,000 square feet hit the market in downtown Hartford alone in the third quarter – the most recent period for which data is available – along with around 150,000 square feet elsewhere in the region, according to Cushman & Wakefield research.
The area office vacancy rate now sits at 25.2 percent, the commercial brokerage said, fully 200 basis points above where it was in the second quarter. The Greater Hartford market has seen just shy of 1 million square feet of negative absorption between January and October, Cushman & Wakefield said, and downtown Hartford itself has 1.74 million square feet of direct availabilities and another 410,502 square feet of vacant sublease space available.
And commercial real estate experts interviewed for The Urban Land Institute and PwC “Emerging Trends in Real Estate” report recently ranked Hartford nearly dead last among 80 North American metros in commercial real estate prospects for 2023.
