Hartford Business Journal

HartfordBusiness.com | February 22, 2021 | Hartford Business Journal 5 often, less retail, according to Stantec's Beske, who said the right mix can make an area more vibrant. "A lot of communities are trying to create 18-hour cities with the whole 'live, work, play' concept," he said. "Overall you get a place that has a better feel to it." Retail-to-office play not right for everyone The repurposing efforts at Westfarms and the Corbin Collection may be successful, but developer Martin Kenny said he doesn't think the strategy provides an answer for downtown Hartford's struggling storefront spaces. Kenny, principal of Lexington Partners and owner of numerous downtown apartment properties with ground-floor retail, said those spaces have been struggling mightily during the pandemic, as many office workers remain at home and not downtown spending money on lunch, dinner or other items during the day. As he and his business partners — Shelbourne Global and parking magnate Alan Lazowski — pursue a major redevelopment of downtown's Pratt Street corridor, where work on 97 new apartments is set to begin in early March, they are worried about the plan's retail component, but certainly not abandoning it. Kenny said he and his partners have renegotiated several retailer leases and agreed to make improvements to make the stores as attractive as possible. "Vacancy is way up," he said. "If the lights are on, people are struggling to pay." In recent years Shelbourne and other downtown landlords have tried to get creative in filling empty spaces with temporary galleries or pop-up stores. However, demand has still been limited as Hartford DEAL WATCH Renderings of Hudson Bay's "York Factory" office offering, which CBRE is marketing for the recently closed Lord & Taylor store at Westfarms. & Wakefield and SullivanHayesNE to market it as potential office or medical space, or creative lofts. SullivanHayesNE broker Timothy McNamara said the bulk of the empty space is on the second floor, which retailers typically avoid. However, the high ceilings on that floor may prove attractive to an office tenant. McNamara, who specializes in retail, is working alongside Cushman & Wakefield Executive Director Joel Grieco, who specializes in the office market, to land a tenant. That's an unusual pairing, as landlords typically seek one type of tenant or the other. "Because this space is unusual and it is in a retail environment, the landlord is trying to cast as wide a net as possible to fill the space," McNamara said. Grieco said co-locating office space with retail amenities is not a new trend, and that the pandemic has not played any significant role in the marketing of the property. "Smart, well-capitalized landlords will adapt to what the market will support, and smart, forward-thinking tenants will give their employees what they want," Grieco said. As COVID-19 vaccines roll out and more telecommuting workers eye a return to the office, employers and workers alike are looking for new options. "When we talk about going back to work, which is definitely going to happen, what we're hearing from tenants nationally is they want to create an experience that doesn't feel like the same old office space," Grieco said. Office space isn't the only option retail property owners are considering as they assess how to best use their assets. Other potential uses include distribution, warehousing, storage and housing. There have been plenty of examples around the country of shopping malls and retail centers being successfully redeveloped into mixed-use properties with housing, parks and other amenities, but Michael Puzzo works to attract more feet on the street beyond just the typical 9 to 5 work day. "What we are trying to do is create space that excites residents to be there," Kenny said. "Part of what makes a downtown a downtown is the retail. Making that space into offices is not really what we want to do." Revitalizing retail and ensuring renters want to live in the city may mean landlords get more flexible about their retail asking rents and lease structures, Kenny said. Making improvements and working with desired tenants will also be key. "We want to invest in the people who we think add a lot to the street," he said. "So once we start renting, people will see the quality and vibe and it'll help the apartments fill up." Tenants at the Corbin Collection in West Hartford include REI, Saks OFF Fifth and Buy Buy Baby. HBJ FILE PHOTO RENDERINGS | CONTRIBUTED

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