There's a couple of reasons why new Class-A office space is big news.
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| artist rendering images from Savannahnow.com |
1. Savannah's Office market mirrored Atlanta & the rest of the country. Slow. Downtown Savannah's CBD is traditionally home to lawyers, banks & financial firms with most users being in the 2500-5000sf range. Limited office leasing produced some moves, but no net-new users of any significance moved into Savannah's office market.
2. Because of its historic architecture, most office buildings in the CBD are outdated & not as efficient as newer office space outside the CBD. Combine that with limited parking, & you can see why many tenants have left downtown heading to Chatham Parkway & Southside Savannah.
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| artist rendering of new Class-A office looking West at Ellis Square |
Slated to open in 2012, a GSA build-to-suit requirement has driven the development of Savannah's first modern 70,000 SF Class-A office building housing the U.S. Attorney's office on four of its six floors. The attraction was the excellent location in the heart of the historic district, combined with ability to have direct access parking below the building via the new 1100 space underground garage at Ellis Square.
Holder Properties is the developer on the project. The ground floor will be leased as retail and the second floor will be leased for office space. Lease rates will reflect the Class-A finishes so, it should be interesting how it competes with other office space in the area that ranges from $18-22/SF.
Rex Benton is Savannah Commercial Real Estate agent with NAI Savannah, the commercial division of Mopper-Stapen, Realtors and is a contributing columnist for "BiS-Business In Savannah" weekly business publication and is an active blogger: www.savannahcommercialrealestate.blogspot.com www.naisavannah.com 912-358-5600 Office Space, Retail Space, Industrial Space, Investment Real Estate
