The Hartford, Connecticut office market saw nearly 760,000 square feet of space become vacant in 2009 that wasn’t offset by new leasing, representing the second year of a trend and eclipsing the 560,000 square feet recorded in 2008, according to the Hartford Courant. Experts expect the trend to continue for 2010 with forecasts of another 300,000 square feet not being offset by new leasing.
The current trends are to contract, consolidate and downsize whenever possible, trends that are reflected by the slowdown in the financial services industry, rising unemployment and the general stunting of business growth by the recession. These trends are mirrored for markets all over the country.
With available office space in the greater Hartford area reaching 21.2% in 2009 and expected to hit 23% by the end of 2010, it continues to be a tenants market with tenant retention being landlord’s No. 1 priority. These numbers can be implanted in almost all major markets across the nation, much of it due to corporate downsizing and aggressively pushing a “work-at-home” strategy to cut leasing costs.
Read the full article from The Hartford Courant here.