An annual review of office space in the Fort Wayne area shows vacancy comparable to whats taking place nationally, a local broker says.
But more than that, the Zacher Co. market survey reveals the effect of Parkview Healths new regional medical campus and a surging downtown, Steve Zacher, president of the company, said Tuesday.
The northeast quadrant has experienced significant movement as a number of medical offices have joined Parkview at its campus or nearby, he said. Its a good thing for Fort Wayne overall.
But commercial development along Dupont Road, including a $550 million expansion at Parkview Regional Medical Center, also added to the areas total square footage, Zacher said. The northeast quadrant still had a more than 35 percent vacancy rate – highest in the city.
It will take some time for all that space to get filled, Zacher said. What will probably have to happen is some of those offices will have to get retrofitted from medical offices to general office. But its just a matter of time.
Downtown Fort Wayne has flourished, Zacher said, with the addition of Parkview Field. In the companys report, Zacher also highlighted The Harrison, an $18.5 million mixed-use development that is still under construction.
Zacher Co. and its affiliate, CORFAC International, calculate the vacancy square footage using data compiled from a combination of online data from multiple major listing services, and brokers listing information from their websites and mailings.
Mike Landram, president and CEO of the Greater Fort Wayne Chamber of Commerce, said that while the Zacher survey is just one indicator of how business is faring, it is valid.
That along with other measures helps us to see how were doing or where we could be doing better, he said.
The Zacher survey said Fort Wayne continues to be challenged by economic circumstances, such as local companies reducing staff or relocating regional offices and headquarters. Regarding rent, the report stated that landlords will continue to offer aggressive rental rates along with generous tenant improvement allowances and concessions in order to keep cash flow intact.
Its still a tenants market, Zacher said.