Hartford Business Journal

6 Hartford Business Journal • April 17, 2017 www.HartfordBusiness.com REAL ESTATE Report: Hartford rental prices decline in March Hartford apartment rental prices fell 3.4 percent in March compared with the same month a year ago, according to the April 2017 Na- tional Apartment List Rent Report. Rents were flat or declining for much of 2016, but the national rent index has now increased in each of the past three months. In Hartford, the median price for a one-bedroom apartment was $830 in March and $1,170 for a two-bedroom apartment. Com- pared with the previous month of February, rent also was down 1 percent. But in Hartford County, the apartment prices were $1,090 for a one-bedroom and $1,300 for a two-bedroom, up 1.3 percent year over year (but flat month to month). Nationally, after a sharp 1 percent spike between January and February, the U.S. rent index is continuing to rise, but at a slower rate with month-over- month growth coming in at a four-tenths of a percent increase for March. Feb. slump for CT house, condo sales, prices Connecticut home and condominium sales and median prices fell in Febru- ary, further evidence the state's housing market remains "sluggish,'' the latest statewide survey shows. Single-family house sales across the state dropped 4.1 percent to 1,727 units last month vs. 1,800 sold in Feb. 2016, Boston financial publisher The Warren Group said. A year ago, February house sales rose 31 percent from the 2015 mark. Median price for a home sold last month was $220,000 vs. $225,000 a year ago — a 2.2 percent decline, Warren Group said. This is the lowest median Feb. sales price since 2012. Condo sales statewide fell 8.1 percent in February to 454 units vs. 494 in Feb. 2016. The median condo price declined 3.7 percent to $144,500 vs. $150,000 a year ago. This is the third consecutive February year-over-year decrease for condo median prices, Warren Group said. "The Connecticut real estate market is sluggish as sales volume and median pric- es dipped last month," said Warren Group CEO Timothy Warren. "Perhaps a strong spring market will get things back on track, but I don't see any signs of that yet." TECHNOLOGY Report: CT tech-sector employment 26th in nation At an estimated $13.5 billion, Connecticut's tech sector represented 5.3 per- cent of the total gross state product (GSP) in 2016, with the number of tech busi- nesses in the state growing 1.8 percent and employment growing 2.6 percent over the last seven years. Those are some of the findings in a comprehensive nationwide report on the economic impact of the tech sector by CompTIA, a global technology associa- tion based in Illinois. Across the country, Connecticut ranks 26th for tech employment, 11th for average annual wages and 22nd for innovation. The GSP data is calculated based on economic output from several tech cat- egories, including tech manufacturing, telecom and internet services, software publishing, IT and custom software services, and engineering and R&D. Connecticut's tech sector is responsible for about 5.3 percent of the state's total $252.9 billion economy, putting the state in the middle of the pack nation- wide. The state whose tech sector makes up the largest percentage of GSP is Oregon (18 percent); Wyoming is ranked last (2.2 percent). EDUCATION Educators approve CSCU $41M consolidation plan The Board of Regents for Higher Education last week voted to implement consolidation plans for the Connecticut State Colleges and Universities (CSCU) that are estimated to save the system at least $41 million a year. CSCU Communications Director Maribel La Luz tweeted news of the vote as the discussion evolved late Thursday morning. "It's time for us to take a collective look at how we are serving our students and how can we do better," said CSCU President Mark Ojakian as tweeted by La Luz. Board of Regents Chairman Matt Fleury led the board in taking action to imple- ment both systemwide administrative consolidation and organizational consolida- tion of community colleges. The motion passed with one abstention, La Luz said. Ojakian had said in a letter Monday to the campus community and docu- ments filed with the board's agenda that he is proposing an "operational con- solidation" that will save $28 million annually by uniting the community colleges into a centrally managed institution. The proposal would keep 12 campuses in place but reduce the number of administrators. In addition, Ojakian proposed saving another $13 million annually by consoli- dating administrative functions across all 17 CSCU colleges and universities. That plan could affect purchasing, information technology and human resources. Implementation is planned for July 1, the beginning of the fiscal year, La Luz said. HEALTH CARE Hartford HealthCare, GE plan link up on logistics center Hartford HealthCare and GE Healthcare have announced plans for projects over the next seven years that will aim to speeding up care access and delivery and improve efficiency to reduce costs — all steered through a $5.5 million high-tech patient care logistics center. The center's location and timing are not yet finalized. It's expected to drive at least $14 million in savings over the next seven years, Hartford HealthCare said. The center will use GE Healthcare's advanced analytics software to determine the best strategies for clinical program and capacity design and to help patients avoid un- necessary wait times and "traffic jams" that can delay care, the health system said. The collaboration's main objectives are: enhance patient experience through more efficient access to diagnosis, testing and treatment; leverage advanced analytics to support ongoing operational and clinical improvements that could lead to faster care; drive improved efficiency to lower the cost of care and pro- vide more than $14 million in savings; and further develop complex digital im- aging services, with improved staffing models and better technology to enable more efficient access for patients across the system, the release said. TOP STORY Malloy won't seek third term Gov. Dannel P. Malloy will not seek a third term in 2018, he announced in a press conference late last week. Malloy said he made his decision in stages since last summer and said the announcement will allow him to use his political capital in his remaining 20 months to pass a difficult budget without worrying about his political future. "My proposed budget was built with Connecticut's best interest in mind, re- gardless of political consequence for me, or anyone else," Malloy said. "And I intend to make the core principles of that budget a reality in the coming months." Malloy's proposed budget for the next biennium — in which Connecticut faces an estimated $3 billion deficit — is controversial. It relies on achieving nearly $1.6 billion in union concessions and shifting hundreds of millions of teacher pen- sion costs to cities and towns, which critics say will lead to property tax increases. Malloy, who won both of his terms in relatively tight elections against Republican Tom Foley, said he was proud of the work he's done over the past six years, during which the state has fought to regain jobs lost during the 2007-2009 recession. "Throughout our work, we've tried to play the long game for Connecticut," Malloy said at the somewhat hastily announced press conference, which occurred just before HBJ went to press Thursday afternoon. He appeared with his wife, Cathy Malloy, and Lt. Gov. Nancy Wyman, who is thought to be one of several potential Democratic gubernatorial candidate. "I love Nancy Wyman and she's got decisions to make," Malloy said. BY THE NUMBERS $1.6 billion The combined gaming revenues of Foxwoods and Mohegan Sun in 2015, down nearly 8 percent from 2013, according to an economist's report released last week. $526,000 The total pot of money for which some Connecticut consumers may be eligible, subject to a June 25 deadline, stemming from a 2015 state settlement involving the drug Provigil. 1,500 The number of economists that signed a letter to President Trump last week trying to convince him that immigrants bring net economic benefits to the United States. 18 months The amount of time it could take to get highway tolls up and running in Connecticut, according to an estimate from House Speaker Joe Aresimowicz. TOP 5 MOST READ on HartfordBusiness.com ■ Italian restaurant chain to open Southington eatery ■ Report: CT six-figure pension costs multiply ■ CT 6th highest in U.S. for property tax rates ■ Bankrupt Bob's eyes closing 9 CT stores ■ Sanitized Marriott Hartford allowed to reopen STAY CONNECTED For breaking and daily Greater Hartford business news go to www.HartfordBusiness.com. HBJ on Twitter: @HartfordBiz HBJ on Facebook: www.facebook.com/HartfordBiz HBJ on LinkedIn: www.linkedin.com/company/ the-Hartford-Business-Journal Daily e-newsletters: HBJ Today, CT Morning Blend www.HartfordBusiness.com/subscribe Weekly e-newsletters: CT Green Guide Weekly, CT Health Care Weekly www.HartfordBusiness.com/subscribe WEEK IN REVIEW Gov. Dannel P. Malloy doesn't plan to run for a third term. P H O T O | H B J F I L E Hartford 21 is one of the priciest rents in downtown Hartford. P H O T O | H B J F I L E

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