The downtown office market held its own last year. Considering the national economic turmoil, stable is good. Buffalo’s Central Business District (CBD) saw a small increase in its Class A vacancy rate with newly redeveloped space coming onto the market according to an end-of-year market summary prepared by the CB Richard Ellis Buffalo office.
128,000 sq.ft. of new Class A office space was created in the CBD last year and total occupancy increased by 99,977 sq.ft. The vacancy rate for Class A space bumped up .52 percent to 6.28 percent.
Two newcomers to downtown signed leases last year. Watts Architecture & Engineering, P.C. is relocating from Eggertsville and taking 20,000 sq.ft. at 95 Perry Street. The Department of Homeland Security is establishing an administrative services office in 33,000 sq.ft. of space in the Bank of America Building. Two law firms have found new homes and are expanding. Cellino & Barnes took space in Main Place Tower and Damon & Morey will be moving to Avant later this year.
One large tenant made plans to leave downtown. LP Ciminelli is exiting the Cyclorama Building and leased space at 325 Delaware Avenue. The construction services firm has purchased the former Great Buffalo Savings Bank headquarters at 2393 Main Street at Jewett Avenue.
Downtown’s Class A and B vacancy rate is 9.8% compared to a national average rate of 11.6% for downtown markets (as reported by CB Richard Ellis’ National Office Vacancy Index, Third Quarter 2008). The CBD’s Class B space saw a .74 percent drop in vacancy to 13.4 percent.
CB Richard Ellis does not report the vacancy rate of Class C space which is typically older and functionally obsolete.
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