What's Next for Hartford? New Analysis Looks at Challenges, Opportunities

Commissioned by LAZ Investments and Shelbourne and prepared by Econsult Solutions, Inc. (ESI), a newly released economic study that presents data, insights, and proposed strategies to address one of our region’s most pressing challenges: high vacancy rates in downtown Hartford’s commercial office market.

The comprehensive study evaluates the increase in office vacancies - particularly among Class A buildings - and explores potential actions to support reinvestment and adaptive reuse.

With nearly 2.2 million square feet of vacant Class A office space and vacancy rates nearing 41%, Hartford faces serious economic and fiscal headwinds, the report indicated. The result, it explains, has been a 24% decline in assessed commercial property values and a loss of $7.6 million in tax revenue - trends that threaten the city's long-term economic health.

The analysis went on to explain that despite significant private and public investment in Hartford’s core, the shift to remote work, long-term employment changes, and evolving urban dynamics have eroded downtown’s vitality. This study offers what officials describe as a well-researched framework to inform the broader conversation on how to reinvigorate our capital city’s urban center.

Among the ideas presented are increased investment in the Capital Region Development Authority (CRDA), state tax credits to support conversions of vacant offices to residential and hotel uses, municipal tax tools like abatements and Tax Increment Financing (TIF), and zoning reforms to expand redevelopment options. These approaches are designed to stimulate both public and private investment in the downtown area and create pathways for sustainable revitalization.

Hartford – as local businesses and residents of the region know well - serves as the civic and economic heart of the region, home to state government, major employers, and higher education institutions. Its future has broad implications for our region’s growth and competitiveness. This study is designed to offer actionable insights that contribute to the body of knowledge shaping planning, public policy development, and investment strategies that officials anticipate will impact the region for decades to come.