CBRE

FIGURES|HARTFORDOFFICE|Q42025

Annualabsorptionskewspositiveforfirst

timesince2016

23.4%

AvailabilityRate

210,736

SFLeasingActivity

(16,860)

SFNetAbsorption

Note:Arrowsindicatechangefrompreviousquarter.

QUICKFACTS

-Quarterlyleasingactivitytotaled211,000sq.ft.,up4%fromthepreviousquarterandup14%fromthethree-yearquarterlyaverage.

-Annualleasingactivitytotaled846,000sq.ft.,up45%year-over-year.

-Theavailabilityrateincreased10bpsquarter-over-quarterto23.4%andwasdown

30bpsfromayearago.

-Quarterlynetabsorptionwasnegative17,000sq.ft.,whichbroughtannualabsorptiontopositive55,000sq.ft.

-Theaverageaskingrentremainedflatquarter-over-quarterandincreased1%year-over-yearto$21.20persq.ft.

$21.20

PSFAverageAskingRent

MarketOverview

HartfordCountyimprovedin2025,showinganincreaseinannualleasing,positive

absorption,andaslightincreaseinaverageaskingrent.Leasingtotaled211,000sq.ft.inQ4,bringingannualtotalsto846,000sq.ft.ofnewactivity—45%aheadof2024.

Despite17,000sq.ft.ofnegativeabsorptioncapturedinQ4,annualabsorptionwaspositivefortheyearat55,000sq.ft.—thefirstyearofpositiveabsorptionsince2016.

Theavailabilityratetickedup10bpsquarterlyto23.4%butwas30bpslowerthantheprioryear.Averageaskingrentwasstablequarter-over-quarterbutsawa1%bump

year-over-year,landingat$21.20persq.ft.

HartfordCBD’s24.0%availabilityrateremainselevatedduetoaslowdownindemand.Severalofthesubmarket’sClassAassetsarecurrentlyenteringreceivership,whichhaspreventednewactivity.

1CBRERESEARCH?2026CBRE,INC.

FIGURES|HARTFORDOFFICE|Q42025

2CBRERESEARCH?2026CBRE,INC.

EconomicOverview

TheU.S.economyissendingsomemixedsignals.Financialmarketsarefocusedontheupside,particularlyAI’ssizablecontributiontogrowthinrecentquarters.Someindicatorsofbusinessactivity,suchascapitalgoodsorders,areimproving,andstrengtheningcreditmarketsarehelpingtousherrealestateintoanew

cycle.Conversely,consumerconfidenceremainsweak,withspendingreportedlydrivenbyasmallersegmentofaffluenthouseholds.AnnualaverageGDPgrowthwillbesteadyin2026,at2%.Akeycatalystisasofterlabormarket,as

companiesare‘slowtohire,slowtofire’—atrendthatislikelytolastafewquarters.

Connecticut’slabormarketfellby5,400positionsquarter-over-quarterinQ4(-0.3%)andisup1,800positionsyear-over-year(+0.1%).Office-usingemployment(OUE)faredslightlyworsethantheoveralllabormarket,losing2,100positions

quarter-over-quarterinQ4(-0.6%).Financialactivitiesletgoof1,200positionsinQ4(-1.0%)whileinformationservicesreducedheadcountby800positions(-

2.6%),andprofessionalandbusinessservicescontractedby100positions(0.0%).Year-over-year,OUEinConnecticutisupanetof2,200positions(+0.6%).

Connecticut’sOUEcurrentlystandsat100.3%ofthepre-pandemiclevel.

Connecticut’soverallunemploymentis3.8%,unchangedsinceMay2025.Thenationalunemploymentrateis4.6%.

LeasingActivity

HartfordCountyrecorded211,000sq.ft.ofleasingactivityinQ4,14%abovethethree-yearquarterlyaverage.Full-yearleasingreached846,000sq.ft.,a45%

increasefrom2024.Thiswasadefinitivereboundfromlastyear’slowandhighlightsthemarket’sgrowingpreferenceforsuburbanlocations,whichaccountedfor77%ofannualleasingactivityacrossthecounty.

HartfordWestclearlyemergedasthestandoutsubmarket,recording57,000sq.ft.ofactivityinQ4—up44%fromthepreviousquarter.Annually,thesubmarkettalliedthehighestleasingtotaloutofanyothersubmarketwith226,000sq.ft.

FIGURE1:TransactionsofNote|Q42025.

Size

(Sq.Ft.)

Deal

Type

Direct/

Sublet

Tenant

Address

Submarket

66,601

R

D

UndisclosedTenant

185AsylumStreet

HartfordCBD

30,746

L

D

TheCatholicAcademyofHartford

765AsylumAvenue

HartfordPeriphery

26,600

L

D

ProgressiveInsuranceCompany

30BattersonParkRoad

HartfordWest

25,560

R

D

Whittlesey

280TrumbullStreet

HartfordCBD

23,000

L

D

CohnReznick

755MainStreet

HartfordCBD

Source:CBREResearch,Q42025..Lease(L),Renewal(R),Expansion(E),RenewalandExpansion(RE),Direct(D),Sublet(S).

FIGURE2:QuarterlyNetAbsorption

SFinMillions

0.25

0.00

(0.25)

(0.50)

Suburbs

Downtown

Source:CBREResearch,Q42025.

3CBRERESEARCH?2026CBRE,INC.

OnenotabledealinQ4wasProgressiveInsurance’s26,000sq.ft.leaseat30

BattersonParkinFarmington.30BattersonParkwhichcaptured18%oftotalleasingactivityinHartfordWestfor2025.

HartfordSouthrecordeditshighestannualleasingtotalonrecordin2025,reaching169,000sq.ft.Afteradding22,000sq.ft.ofactivityinQ4,annualleasingtotals

finished65%above2024figures.Activitywaslargelyboostedbytheyear’sbiggestdeal—TheHubbardDaySchool’s45,000sq.ft.leaseat525BrookStreetinRockyHillinQ2.

HartfordCBDrecorded35,000sq.ft.ofnewleasinginQ4—46%belowQ3and23%belowthethree-yearquarterlyaverage.Annualleasingreached147,000sq.ft.,up2%from2024.Activitywasanchoredbytwomajordeals:theConnecticutState

DepartmentofBanking’s26,000sq.ft.leaseat280TrumbullStreetand

CohnReznick’s23,000sq.ft.full-floordealattheGoldBuildingon755MainStreet.Renewalswerethestandoutof2025,totaling103,000sq.ft.inQ4and182,000sq.ft.fortheyear.TheCBD’srenewaltotalaccountedfor47%ofallcountywide

renewalactivity.

HartfordNorthsaw39,000sq.ft.ofactivityinQ4,bringingitsannualtotalto

135,000sq.ft.—thehighestannualfigurethesubmarkethasseeninfouryears.ThesubmarketwasledbySymetraInsurance’s15,000sq.ft.leaseat175AddisonRoadinQ4.

NetAbsorptionandAvailability

HartfordCountyachievedpositiveabsorptionforthefirsttimeinnearlyadecade,reflectingaslowdownofsizablespaceadditions.QuarterlyabsorptioninHartfordCountywasnegative17,000sq.ft.,butannualabsorptionremainedpositiveat

55,000sq.ft.Availabilityremainedstablethroughout2025,finishingat23.4%,down

30bpsfromyear-end2024.

HartfordSouthrecordedstrongpositiveabsorptionin2025,endingtheyearat

145,000sq.ft.,despitepostingnegative12,000sq.ft.inQ4.Thiswasthe

submarket’sthirdconsecutiveyearofpositiveabsorption.Availabilityincreased40bpsinQ4to16.2%,butwasdown170bpsyear-over-year.

PerSq.Ft.

$25

$20

$15

$10

$5

FIGURE3:Availabilityvs.AverageAskingRent

$0

AverageAskingRentAvailabilityRate

35.0%

28.0%

21.0%

14.0%

7.0%

0.0%

Source:CBREResearch,Q42025.

4CBRERESEARCH?2026CBRE,INC.

Improvedleasingactivityandtheadditionofonlytwonewspaceadditionsover20,000sq.ft.at500EnterpriseDrive,andtheremovalof1344SilasDeaneHighwayfromtheinventoryduetoitsconversionto75apartmentsallcontributedtothepositiveabsorption.

HartfordNorthdelivered50,000sq.ft.ofpositiveabsorptionin2025,despitetwoofthe

year’slargestspaceadditionsat200GreatPondDriveinWindsorand1300HallBoulevardinBloomfield,whichaddednearly160,000sq.ft.ofnewspacecombined.Strongleasingactivityhelpedoffsetthenewsupply.Availabilityfinishedat45.4%,down20bpsfromtheprior

quarterand1,300bpsbelowtherecordhighinQ42023.

HartfordCBDhadthelowestvolumeofabsorption.Q4’sabsorptiontotalednegative47,000sq.ft.andbroughttheannualfiguretonegative181,000sq.ft.TheCBD’savailabilityrate

increasedto24.0%,up50bpsquarter-over-quarterandup140bpsyear-over-year.TheCBDsubmarketsawthelargestnewspaceadditionofQ4—twofullfloorstotaling50,000sq.ft.at350ChurchStreet,formerlyoccupiedbyCohnReznick.Throughouttheyear,thesubmarketaccountedforfourofthetenlargestnewlyaddedavailabilities.

OfficeAverageAskingRent

HartfordCounty’saverageaskingrentwas$21.20persq.ft.—flatquarter-over-quarterbutincreased1%year-over-yearasspacespricedabovemarketaveragebecameavailable.

HartfordSouthsawa2%dropinaskingrentquarter-over-quarterto$20.04persq.ft.Thedecreasewasdrivenbythefullbuildinglistingat750OldMainStreetinRockyHill,whichbrought24,000sq.ft.tomarketataratebelowthesubmarket’saverage.

Annually,HartfordEastsawanincreaseinaskingrent,jumping3%to$21.40persq.ft.—thehighest

levelthesubmarkethaseverseen.SixnewspaceadditionsalongGlastonburyBoulevard,pricedabovethesubmarket’saverage,werethekeycontributorstotheincrease.

*TheHartfordofficemarket'sinventoryandavailabilityfigureshavechangedsubstantiallyduetoashiftinthenumberandtypeofbuildingsthatarebeingtrackedasstatisticalinventory.Theupdated

statisticalbuildingsetalignswiththerestofCBRE’sTri-StatemarketsandprovidesamorerelevantviewoftheHartfordofficemarket,trackingClassAandClassBofficebuildingsthattotal20,000sq.ft.orlarger,andthatarenotownedandoccupiedbyagovernmentormedicalinstitution."

FIGURE4:AverageAskingRent|ClassAvs.ClassB

$25

PerSq.Ft.

$20

$15

$10

$5

$0

ClassAClassB

Source:CBREResearch,Q42025.

FIGURES|HARTFORDOFFICE|Q42025

5CBRERESEARCH?2026CBRE,INC.

FIGURE5:Q42025.|MarketStatistics

Submarket

Buildings

MarketRentableArea

(MSF)

AvailabilityRate

(%)

VacancyRate

(%)

LeasingYTD

(SF)

NetAbsorptionYTD

(SF)

AverageAskingRent

($/SF/Year)

HartfordCBD

37

2.19

24.0%

23.6%

147,914

(180,873)

$22.93

ClassA

18

2.01

28.4%

28.4%

122,204

(189,058)

$23.21

HartfordPeriphery

16

0.10

3.2%

3.2%

46,550

32,314

$19.34

ClassA

3

0.03

1.8%

1.8%

1,755

(1,525)

$23.10

HartfordNorth

48

2.28

45.4%

44.8%

134,741

49,606

$19.89

ClassA

18

1.70

51.1%

50.2%

71,564

27,353

$20.38

HartfordEast

50

0.46

14.2%

12.8%

122,380

(9,362)

$21.40

ClassA

15

0.19

19.9%

16.5%

69,645

(22,397)

$23.53

HartfordSouth

54

0.58

16.2%

15.5%

168,678

145,453

$20.04

ClassA

14

0.27

16.5%

15.3%

93,345

12,843

$22.71

HartfordWest

101

1.19

22.1%

21.5%

226,033

17,867

$20.70

ClassA

34

0.56

24.1%

23.3%

132,969

(7,699)

HARTFORDOVERALL

306

6.79

23.4%

22.9%

846,296

55,055

$21.20

Source:CBREResearch,Q42025.

FIGURES|HARTFORDOFFICE|Q42025

MarketAreaOverview

Definitions

Availability:Spacethatisbeingactivelymarketedandisavailablefortenantbuild-outwithin12months.Includesspaceavailableforsubleaseaswellasspaceinbuildingsunderconstruction.

AskingRent:Weightedaverageaskingrent.

LeasingActivity:Totalamountofsq.ft.leasedwithinaspecifiedperiodoftime,includingnewdeals,expansions,andpre-leasing,butexcludingrenewals.

LeasingVelocity:Totalamountofsq.ft.leasedwithinaspecifiedperiodoftime,includingnewdeals,expansions,andpre-leasingandrenewals.

NetAbsorption:Thechangeintheamountofcommittedsq.ft.withinaspecifiedperiodoftime,asmeasuredbythechangeinavailablesq.ft.

Vacancy:Unoccupiedspaceavailableforlease.

SurveyCriteria

CBRE’smarketreportanalyzesHartford’sClassAandBofficebuildingsthatareconventionallymodernized,andnotownedandoccupiedbyagovernmentormedicalinstitution.Newconstructionmustbeavailablefortenantbuild-outwithin12months.CBREassemblesallinformationthroughtelephonecanvassingandlistingsreceivedfromowners,tenantsandmembersofthecommercialrealestatebrokeragecommunity.

?Copyright2026Allrightsreserved

Informationcontainedherein,includingprojections,hasbeenobtainedfromsourcesbelievedtobereliable