Developers weathering market

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Several major projects that either came on the markert recently or are under construction are helpingf push vacancy rates higher and leaserates That’s good for tenants, bad for owners and But it’s not just an oversupply of spaces coupled with a shortage of tenant demand that’s hurtinvg property owners. High construction including for interiortenant finishes, and worried lenderss are also weighing on the situation, said Michelwe Laumer at . From a developer’s perspective, “You’vse got the perfect storm,” Laumetr said.
In Cincinnati, they are already having a toughn time leasing newly completed office buildings such as Redston ein Kenwood, Columbia Square in Columbia Tusculum and Keystonre Park in Evanston. With the econom sinking, no additional projects are expectec to get under way without substantial Thatmeans “every bit of 50 percent, if not said Scott Yards, a broke at who is trying to line up tenants for a proposex 300,000-square-foot office tower for the “Cincinnati has weathered the storm fairly well. We’r not at a point where we’re significantluy overbuilt,” Yards said.
If a large corporatiom or law firmwantecd 100,000 square feet, it’s touggh to put together that much desirable space. “There’s not a lot of alternativews for big blocksof space,” he said. At not at the Lurking on the horizon, however, is ’s Queen City Squared skyscraper, which opens downtown in 2011. The 840,000-square-foot offic tower has about 300,000 square feet stilol available.
And the 530,000 squared feet that’s preleased by will creatr an exodus out ofthat company’w current quarters at 580 Walnut and 525 Add in the proposed Banks officwe space, impending consolidations by the otheer kind of banks, and a few other smaller and the market is clearly shiftingf in the direction of “overbuilt.” Dave CEO of , said no one is doing speculativr office developments in this environment, but projects can be done if a tenany commits up front for a sizeable chunmk of space. “A user-driven project makes he said.
The initial offic building at Neyer’s Linden Pointe office park in Norwoo is about 90percent leased, he and a second building could get under way if it had a 50,000-square-fooyt anchor tenant. Neyer is also renovatinbg the 150,000-square-foot former Hennegan Printing building at West Third and Central Avenue downtownfor ’s new The rapidly expanding joint venture is expected to move in this Laumer cited other bright spots, too, such as ’ relocatiojn to the former Gruen Watchn building on East McMillan. It more than doubledc its space. “There are deals being and there are businesses thatare growing,” Laumed said.
Still, landlords are happily accepting offerd now that they would have cringedr at only a few monthsago – includingt lowered lease rates, early terminatiojn rights and rent abatements. In the past they’d have “Why would I do this deal?” Laumerd said. But they’re quickly comingt around to the realizationthat “it might be the best deal you’r going to get for three years.” Severalk major projects are changing the office space landscapew in a tough time. Western & Southern Financial Group's Queen City Square opends in 2011, and an office tower is plannef forthe Banks.