Wednesday, July 20, 2011

Office Space getting tighter in downtown Winston-Salem

I was happy to see that last week the Wachovia Tower had signed a very large 80,000 SF lease which was reported by both the Business Journal and the Winston-Salem Journal

Link to Business Journal Article written by Owen Covington
Link to Winston-Salem Journal Article written by Richard Craver

Wachovia Tower in downtown Winston-Salem is almost full of tenants.
Yesterday, Michael Clapp released his bi-annual July Office Survey for Winston-Salem.  Below is an excerpt from that report.  As you review this information, I hope you notice that our Class A vacant space is getting pretty low.  Typically as these vacancies decrease, the taxable value of these high density buildings increase.  As this taxable value increases it provides more revenue to the local governmental entities.  This is a positive thing for everyone in our city and county and it highlights how the downtown office market is getting stronger.  These statistics may tend to be a bit wonky for some, but they are important because they also indicate that we are in a climate where additional office development might be possible.  Our current lending markets still require a developer considering development of a speculative multi-tenant office facility with a high level of pre-leased tenants, but with vacancy rates going down, it may be something to keep an eye out for.  I know that I will be. 

Also, I recommend that you contact Michael Clapp and get on his mailing list for this report if you are interested in this topic.  Here is a link to his website.

Also for some benchmark information on previous years, he has a line chart that shows downtown's vacancy rate going back to July of 1992.  (see select historical data points on all downtown office classes at the bottom of this post)

Downtown Winston-Salem CBD
Source:  Clapp & Associates, July Office Survey 2011

Rentable SF
Vacant SF
% Vacant
Avg. Asking Rent

Class A SF
Class A Vacant
% Vacant
Avg. Asking Rent

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