Downtown office lease rates still down

Feb. 23--More than five years after the economic downturn, asking rents for downtown office space remain about 20 percent below 2007 levels, according to data from Colliers International.

The average asking price was $21.96 a square foot during the fourth quarter, down from $26.56 in the fourth quarter of 2007. By Colliers' measure of buildings with more than 10,000 square feet, downtown's vacancy rate was 12 percent during the most recent quarter, up from 9 percent six years earlier.

Insurance companies and tech firms have moved into downtown offices while several law firms have expanded.

"What we've seen is consolidation in the suburbs and companies moving back to the core, and there have been some new-to-market deals with companies coming here from out of Orlando," said Todd Davis, managing director for Colliers in Orlando.

Parking remains an issue downtown. As companies squeeze their office footprint with less space per employee, they need more parking, and that adds to their costs, he said.

Sales

Cushman & Wakefield Investment Sales Team Executive Director Mike Davis, Senior Director Michael Lerner and Director Rick Brugge represented Boston-based Guggenheim Real Estate in its $13.7 million purchase of the four-story Crescent at Primera IV office building, with 121,712 square feet in Lake Mary. Miami-based Banyan Street Capital Partners purchased the property. ...

Marcus & Millichap represented a West Palm Beach limited liability company in its $12 million sale of Pleasant Hill Self Storage in Kissimmee. The seller was represented by Marcus & Millichap executives including Michael A. Mele, of Tampa, and Douglas Mandel and C. Todd Everett, both of Fort Lauderdale. Mele and Everett also represented the New York-based buyer. ...

Robbie McEwan, vice president at Lee & Associates Central Florida, represented Atrium Universal LLC's$7.65 million acquisition of the Atrium Tower office building with 106,611 square feet at 7680 Universal Blvd., Orlando. Douglas Mandel, of Marcus & Millichap, represented the seller, 7680 Universal Boulevard Holdings LLC, which is managed by U.S. Bank National Association of Bethesda, Md. ...

CBRE represented Duke Realty in its $4.5 million sale of the remaining 22.5 acres of the Northpoint office park in Lake Mary. TPA-Pelloni LLC, which includes TPA Group of Atlanta and Pelloni Development Corp., acquired the property from Duke, which developed the bulk of the 61-acre park. ...

Griffiths Development purchased 10.8 acres of industrial land in Bent Oak Industrial Park of Orlando for $1.9 million. Cory Kroeger and Greg Rebman of KR Properties represented the buyer, who plans to build up to 150,000 square feet of warehouse and manufacturing space. Matt Sullivan, Wilson McDowell and Bobby Isola, of Colliers International, represented the seller, JCL Development. ...

Michael Winn, vice president of Winter Park Land Commercial, was the listing broker in the $1.5 million sale of Thomas Lumber Supply. The building, with 16,700 square feet, is at 784 N. Orange Ave., Winter Park. The seller was Thomas Lumber and the buyer, Lumber Yard LLC, was represented by Lee Zerivitz of City Commercial.

Leases

Blade Runners Commercial Landscaping leased a warehouse with 62,350 square feet at 3851 Center Loop in Center of Commerce, Orlando, for seven years. Greg Rebman and Cory Kroeger of KR Properties represented the landlord, Redd Properties LLC. David Perez, Lee Morris and Jared Bonshire with Cushman & Wakefield represented Blade Runners.

Construction

After getting 3 acres on Millenia Boulevard rezoned from office to commercial, Skorman Development plans to break ground within three months on a shopping center with 25,895 square feet of retail space. Marc Skorman said his company purchased the property in 2007 for $3.25 million and planned a five-story office building "but the market just stopped on us and it took us all this time to get the consent to do retail."

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