Hartford Industrial Figures Q4 2024

The Hartford industrial market has been navigating the challenges posed by reduced large block demand following the Federal Reserve's interest rate increases. In the fourth quarter though, leasing activity saw a bump in demand of 79% to 290,000 square feet, closer to the post-rate-hike norm. Vacancy was stable quarterly at 5.5% due to no construction deliveries and benign net absorption of positive 23,000 sq. ft. Sublease availability was also stable at 1.9% after several big block additions earlier in the year. The average asking rent rose by 2.7% to $7.69, driven by the relatively low vacancy rates in the market and the limited number of new developments in the construction pipeline. Despite slower demand throughout the year, vacancy in Hartford market saw a moderate increase, mostly was due to the addition of two large block subleases vacancies. Tightness in the market for quality smaller and some larger size ranges of space led to an annual increase of average asking rents to 19%