Greater Hartford BOMA President's Message

We are only a month away from spring and this winter has been a welcome break for property managers and tenants with the level of snow fall so far this year. Exterior construction projects that could have been postponed due to snow are ahead of schedule and in some areas landscaping spring clean up has begun. During the January BOMA Greater Hartford program, Professor Ed Deak shared that 2012 would bring little change in the commercial real estate market. Overall, vacancy rates will remain the same. Office vacancy rates are key indicators of the health of an area's economy. An office market is considered strong if the vacancy rate is in the low teens. New Haven, which did not have a major jump in vacancy in the last recession, still experienced a drop to 10.9% from 13.7% in 2011. The city of Hartford may attract new businesses in 2012 with the lowering of the commercial property taxes. Tax bills on prime properties could decline by 5 to 30%. Two downtown Hartford buildings, 777 Main St. and Connecticut River Plaza, sit empty with approximately one million s/f of office space. Plans are progressing for the $579 million rapid transit bus line linking New Britian and Hartford. Ground breaking is anticipated this spring. This initiative and the Jackson Lab project are expected to create more than 7,000 direct and indirect jobs to the 11,000 jobs expected to be created in Connecticut by September 2013, particularly construction jobs. BOMA Greater Hartford is excited to host our February 14th program when Catherine Smith, commissioner of the Connecticut Department of Economic and Community Development, will discuss what the state plans to do to bring more jobs and attract new businesses to Connecticut. These and other issues affecting growth in Connecticut will be discussed. Please visit our new website at www.bomagreaterhartford.com.