Challenges and Optimism: Assessing CT's Commercial Real Estate Market

Pullman & Comley Property Tax and Valuation Vice Chair Laura Cardillo wrote an article for the Hartford Business Journal, “Challenges and Optimism: Assessing CT's Commercial Real Estate Market.” The article discussed the vital role commercial real estate plays in Connecticut’s economy and the mix of challenges and opportunities shaping its future.

Drawing from insights shared during her panel at the Hartford Business Journal’s Cranes & Scaffolds Commercial Real Estate Conference, Laura explored trends in office, multifamily, retail, and hotel markets. “Office space can be divided into three segments, and despite the spread of remote work, two are performing quite well,” she wrote. “As more workers return to the office, the under-10,000-square-foot market is strong and the 10,000-to-20,000-square-foot range is strengthening.”

“We are seeing a flight to quality,” she continued. “Tenants that are leasing property are willing to pay a premium to significantly downsize to a building with more amenities in a sought-after location.”

Laura noted that “finding alternative uses for vacant space is critical to prevent downtowns from hollowing out,” with conversions of offices to multifamily housing being “a popular strategy,” though “high development costs and a persistent capital gap continue to complicate deals.”

On the retail front, she observed that “providing an experience is where the opportunity lies,” highlighting how upgrades to venues such as the PeoplesBank Arena and Dunkin’ Park have made them “central retail amenities in downtown areas.” She added that “hotels in the state have done surprisingly well” by shifting “from serving business guests to welcoming leisure guests.”

Laura also wrote that “top-tier residential properties in Connecticut are second to none, thoroughly amenitized and attractive to young people and empty-nesters alike; multifamily demand shows no signs of slowing down.” However, “the drop-off to the next level of affordability is quite large,” leaving “a wide-open opportunity for developers…to close the gap.”