Downtown Hartford’s office buildings have lost hundreds of millions of dollars in value, and are likely to continue to do so unless state and city leaders commit to aggressive redevelopment incentives, according to a new report released Thursday.
The study, conducted by Philadelphia-based consulting firm Econsult Solutions Inc., was funded by two of Hartford’s most active real estate investors — Shelbourne Global Solutions and LAZ Investments, in coordination with the MetroHartford Alliance.
It paints a bleak picture of the city’s office market, warning that without intervention, the downtown office towers on Hartford’s skyline will continue to shed value and economic vitality.
Among its key recommendations, the report urges the state to invest $450 million over three years in new incentives to reposition struggling office properties. That would come in addition to existing state spending through the Capital Region Development Authority (CRDA). It also calls for local and state officials to consider new tax incentives to support large-scale renovations of office buildings, or their conversion into apartments or hotels.
The report notes that roughly 41% of downtown Hartford office space is currently available or will soon be. It warns that four downtown towers have already fallen into receivership with “no viable path forward for repositioning or reuse,” and that the city is already losing millions of dollars in tax revenue due to falling property values.
MetroHartford Alliance CEO David Griggs, who released the report, said it is already doing what it was intended to do: prompt a broader conversation about solutions.
“It has done what I hoped it would do — spark a conversation,” Griggs said. “A lot of people have ideas and want to put them into the mix. The study was commissioned to help create a better-informed discussion and to throw some ideas out on the table.”
Griggs said the findings are being discussed among a working group of regional economic development and real estate leaders, and that elected officials are increasingly joining the dialogue. But he emphasized that moving the recommendations forward is ultimately in the hands of policymakers.
Shelbourne Global Solutions, Hartford’s largest commercial landlord, is deeply invested in the city’s real estate future. The firm is behind various high-profile development projects but is also facing headwinds: two of its downtown office towers — Metro Center at 350 Church St. and the Stilts Building at 20 Church St. — are now in receivership amid foreclosure proceedings.
LAZ Investments, the family investment vehicle of LAZ Parking co-founder Alan Lazowski, has also played a key role in a number of key Hartford developments. The company has repeatedly partnered with Shelbourne on property acquisitions and redevelopment. In 2019, the two teamed up to buy The Gold Building (One Financial Plaza at 755 Main Street) for $70.5 million.
