🔒From insurance capital to urban neighborhood: Hartford’s push to reinvent its downtown

For nearly 200 years, Hartford has punched above its weight as a corporate capital. Its skyline and economy have been shaped by insurance giants and companies that serviced them. But that gravitational pull on major employers has weakened over decades. And while civic and business leaders argue Hartford maintains a corporate base many peer cities would envy, there is also an understanding that the city needs to redefine itself for a new era — one where a livelier, more populated downtown replaces what had been a high-rise corporate office park. City and state officials are betting that investments in housing, entertainment and amenities will create a vibrant urban core. They hope that, in turn, will attract residents, workers and visitors — while also convincing major employers that Hartford’s best days are still ahead of it. “For most of (nearly) 250 years of American history, Hartford has been a great American city, a city that’s a center of commerce, a city that’s a center of great thinkers,” Hartford Mayor Arunan Arulampalam said. “We are so used to talking about the last 50 years of history, which is really just a snapshot, and using it as a reason to pin Hartford as a city on the decline. But we have all the bones to rebuild in a very significant way, to continue to be a great American city.” Arulampalam has backed a strategy — also embraced by his predecessor, former Mayor Luke Bronin — to restore downtown Hartford’s vibrancy with new apartments, retail and restaurant options, and upgraded entertainment venues. He’s spearheading a plan — with the help of corporate leaders and others — to develop a new AI innovation center downtown. And, most recently, he’s been vocal in advocating for an investor group that’s trying to bring the Connecticut Sun professional women’s basketball team to Hartford. The plan could include building a practice facility and player housing downtown, while the team would play its home games at PeoplesBank Arena. “What that would mean for the community is huge,” Arulampalam said. “Teams like this bring economic development in a whole lot of ways, and it would signify the fact that Hartford is a city on the rise.”

Evolving market

For decades, Hartford has functioned largely as a corporate park, its central business district dependent on throngs of office workers who flowed in and out on commuter hours. But their impact lessened as Hartford’s corporate base shrunk. Then, the 2020 public health crisis accelerated employers’ shift to remote work, further eroding downtown foot traffic and jolting the city’s office market, restaurants and retailers. While many companies have since called employees back to the office, hybrid schedules mean fewer people commute to Hartford five days a week. It has also reduced employers’ needs for office space. The impact has been stark: about 41% of downtown office space is available or soon will be, a recent report noted, and numerous Class A office buildings are in foreclosure or restructuring. Faced with those realities, city and state leaders are pursuing a new formula for downtown — less office space, more residents and giving people more reasons to be downtown after hours. Adding housing is a key part of the formula. Since its launch in 2012, the Capital Region Development Authority has provided more than $200 million in low-interest loans to housing developers in Hartford. The financing has helped create about 3,350 market-rate apartments downtown. With hundreds of more units in the pipeline, CRDA’s long-term goal is to help finance at least 5,000 apartments. But some argue much more is needed. Philadelphia-based consulting firm Econsult Solutions Inc. recently published a study that paints a bleak picture of the city’s office market, warning that without intervention, downtown Hartford’s largest office towers will continue to shed value and economic vitality. The study — which was done in coordination with the MetroHartford Alliance and funded by two of Hartford’s most active real estate investors, Shelbourne Global Solutions and LAZ Investments — urges the state to invest another $450 million over three years in new incentives to reposition struggling office properties, mainly into apartments or hotels. Daniel O’Keefe, commissioner of the state Department of Economic and Community Development, is a big believer in the push to reposition downtown Hartford. A model, he said, is the city of Stamford’s South End, where old industrial sites have given way to apartments, parks and restaurants. Hartford should follow a similar playbook by reducing its office space and embracing more greenery and housing, he said. That’s one of the reasons he helped create the state’s new Greyfields program. Approved by the legislature this past June, the initiative will provide $50 million over two years to support the redevelopment of outdated office and retail properties into new uses, including housing. O’Keefe expects Greyfields funding to begin rolling out in 2026, with Hartford high among the priority recipients. “All cities, all municipalities have to reinvent themselves,” O’Keefe said. “And so, this is the core reason why I advocated for and created the Greyfields program.”

Other pillars

Beyond multifamily housing, there’s been significant state and local investment over decades to add to the city’s attractions. That included the state-backed Adriaen’s Landing project, which invested hundreds of millions of dollars in the Connecticut Convention Center, Connecticut Science Center and Marriott Hartford Downtown Hotel. There was the addition of the $71.7 million Dunkin’ Park minor league baseball stadium in 2017. A $145 million overhaul of the PeoplesBank Arena (formerly known as the XL Center) is underway, with hopes it will attract more concerts and events downtown. The city is also working on multiple fronts to fill its vacant retail space. Some developers are buying into Hartford’s future vision. RMS Cos., a Stamford-based developer active across Connecticut, has built 270 apartments near Hartford’s Dunkin’ Park and is wrapping up a 237-unit project next door as part of its larger North Crossing redevelopment. CEO Randy Salvatore sees Hartford at the early stages of a redevelopment cycle Stamford began 15 years ago. The gap between the two cities is evident in land costs. RMS recently paid $16 million for a 123,000-square-foot Burlington Coat Factory building in downtown Stamford, which it plans to demolish to make way for a 280-unit apartment complex. That price tag didn’t include demolition or redevelopment costs. In Hartford, by contrast, the city has granted RMS $1-a-year leases to build apartments on vacant lots around Dunkin’ Park. Still, Salvatore said he’s equally bullish on Hartford’s prospects. RMS is partnering with the city on plans for a 120-room hotel, parking garage and new home for the proposed AI center on a 3-acre site next to the stadium. A vacant data center on the property will be torn down with help from a $4 million state brownfield grant. “I think Hartford has a really positive future,” Salvatore said. “You still have a major presence of insurance companies there. You still have a lot of vibrancy there. What you don’t have is enough people living on the ground. Going back 15 years, you didn’t have enough people living in downtown Stamford either.”

Getting involved

David Robinson is chair of the CRDA board of directors and the former general counsel of property and casualty insurer The Hartford. He said downtown apartments have been leasing quickly and commanding rising rents — trends that reinforce his confidence in the city’s revival strategy. Recent redevelopment successes in Hartford and East Hartford are prompting more area corporate leaders to get involved, he said. “There’s a growing openness to a more coordinated effort to help build a vision and a strategy that could be a guiding North Star to what the region could be with some meaningful public-private partnerships,” Robinson said.