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Metro Hartford, Connecticut, compares favorably to competitor cities when it
comes to tax and lease costs for insurance companies, barely behind No. 1 Des
Moines.
Graph courtesy of MetroHartford Alliance – CohnReznick analysis,
2023
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Two reports to recently cross the transom at Site Selection study location trends among
insurance and financial services firms. The first is an independent analysis commissioned
by the MetroHartford Alliance and conducted by CohnReznick: “Effective Business Tax and Lease Rate Analysis: Comparing the
Hartford Region and Connecticut with Peer and Competitive Markets-2023 Update” does
exactly what its title suggests, and finds the Hartford region compares favorably to 14
other markets (including Des Moines, New York, Charlotte and Fairfax County, Virginia)
known for their concentrations of Fortune 500 headquarters, insurance and financial
services, aerospace/defense and advanced manufacturing. “Compared with peer and
competitive markets, Hartford boasts the second lowest total tax and office lease costs
for insurance and financial services companies,” the study finds. The lowest is in Des
Moines. The Hartford area also has the lowest costs for general Class A office users.
A week later, JLL Research unveiled a snapshot looking at insurance company occupier
trends. “What our researchers discovered was that insurance occupiers continue to commit
to better quality office space, especially as they enforce RTO policies,” says a JLL
spokesperson. “Since 2019, 62% of insurance tenants that have relocated have upgraded
their office building class … In an industry with a large presence across smaller markets,
the trend is particularly prevalent in Gateway Cities. Since 2019, 76% of insurance
relocations signed in Boston, Chicago, Los Angeles, New York City, San Francisco, Seattle
and Washington, D.C. have been moves to better quality buildings.” Location
decision-makers will want to hold that information next to an April 2023 report from JLL noting shifts in the
insurance talent landscape related to automation and AI.
Graph courtesy of JLL
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