Despite a troubled economy, office space in downtown Rochester is in greater demand than it was 12 months ago, says a new report by the Rochester Downtown Development Corporation. The nonprofit consulting firm has been tracking the downtown real estate market since 1983. | The report looked at 111 buildings and more than 10.7-million square feet. After removing single owner-occupants and government office buildings, the downtown vacancy rate is 19.2 percent. | The tighter vacancy rate is due to renewed interest in downtown, the report says, with 10 companies moving from the suburbs to the city over a 12-month period. That raises the question: what is happening regionally? | "The end game is to improve regionally," says Heidi Zimmer-Meyer, RDDC's president. "If all we're doing is borrowing from Peter to pay Paul, we haven't accomplished very much. We've got to grow our existing companies and add new companies." | Angelo Nole, executive vice president of CB Ellis, one of the country's largest real estate firms, is optimistic about metro Rochester. | "More office space is being leased faster than it is coming on the market," he says.
Comments for "DEVELOPMENT: The space race downtown " (6)
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Kathryn said on Oct. 28, 2009 at 1:08pm
What is last year's percentage?
City editors said on Oct. 28, 2009 at 3:35pm
Kathryn,
Thanks for your question. As of May 2008, the vacancy rate was 19.8 percent. In 2007, it was 29.1 percent.
rochester99 said on Oct. 29, 2009 at 10:13am
Like any statistical data, one needs to look at the fine print. While I don’t have access to specific downtown data one must question the “optimiusm” in downtown Rochester. First the complete midtown complex has been tossed off the list (well over one million square feet of office/retail space) and there maybe other buildings that have been removed from the list. With less supply, you would normally have a tighter market.
Next you look at who is moving downtown and why. It appears to me that most of the movement was a function of very HEAVY public subsidies. Businesses may be chasing public dollars rather than seeking out downtown for some meritorious reason.
While I would love to see a major commercial development movement back to downtown Rochester, I just don’t see or sense it. It’s nice to a be cheerleader but we must be realistic in what is truly happening.
Smugtowner said on Nov. 02, 2009 at 10:33pm
I completely disagree with rochester99..... The pessimism and logic presented in his post are the polar opposite of what you are about to read. Downtown Rochester is better off than it was a year ago, much better than it was 5 years ago, and it will absolutely continue to get better for many years to come! I sense it, I see it, I feel it... and I am not being a cheerleader, I'm being completely objective. I live downtown and pay close attention to what is happening here! Infusing the core of our city are many commercial developments. If you don't walk or drive around downtown every day, you may not even notice, but I do walk and drive around downtown everyday, and I can tell you based on my own senses (which I trust far more than any other statistic or source) Rochester is on the upswing for sure! The revitalization is happening incrementally, and those increments are becoming increasingly larger. Suburbanites NEED to understand this. Bashing Rochester is passe...... and positivity goes farther than some would like to think. Bring your family downtown and go to the museum..... or go to the library..... or just swing through and grab a quick bite to eat. Pay attention to how things look and feel! Walk the streets and think of the history. Check out the new ESL headquarters and realize why they chose that location over any other. See the river and the high rises, and think about the people who built them. Drive around the inner-loop and think about what a culturally rich community we live in! I promise you will go home wondering why you haven't done this sooner.... Or alternatively...... You could stay in the suburbs and stew about, muttering how things are no good, and blurt your distaste with every extra chance you get. Well......... If YOU are such a good person, and you want the city to be good, then live in the city, shop in the city, hang out in the city, and it will obviously be BETTER!!! Rochester has it all, except for YOU, so come be a part of it and watch it as is blooms. I do and will for the duration of my life.
rochester99 said on Nov. 03, 2009 at 4:54pm
Smugtowner….your moniker represents exactly what I have been stating about Rochester…smug, conservative with an attitude that defends the status quo. And you state that you are unbiased…but you live downtown and people who live downtown are the biggest promoters of this thinly population city center.
The point I was making is that we cannot just blindly cheerlead for downtown….its a shallow facade that doesn’t help its economic dynamics. Year after year after year….promoters of downtown Rochester have cheered a series of construction projects…projecting a major “turning point” for this district. And year after year we are disappointed. Sure there is construction going on…but as I stated before….massive public subsidies created the vast majority of these projects. Getting a business to move from Florida to downtown Rochester with subsidies will create positive economic benefits…but spending public dollars to get a company to move from one city/county location to downtown Rochester is just an expensive “economic mirage”!
And being constructively critical of projects and statistics is not bashing Rochester or being pessimistic….it’s just being realistic! Just "wanting" things to be better for downtown Rochester will not guarantee that things will get better.
Smugtowner said on Nov. 03, 2009 at 10:27pm
rochester 99, I like your response, and I agree with much of it, especially this statement: "spending public dollars to get a company to move from one city/county location to downtown Rochester is just an expensive “economic mirage”!" I wholeheartedly agree that spending public money to get a business to come to Rochester is NOT the way to go. It's selling us short, and is a blatant act of desperation that gives wealthy business owners way too much manipulative control. We shouldn't be stacking the chips against us like this. My original post was to explain my frustration with those who seems to consistently focus on the negative. I AM biased towards Rochester... that's why I call it home, but I can still observe objectively on what I've seen in recent years. There are dozens of small businesses that are occupying buildings that were empty. My point is that I am seeing revitalization occur before my eyes. It may be hard for some to recognize, because of the stigmas that we've all heard. In my mind I have a day to day account and can say honestly and without undue optimism that I am seeing incremental growth that is gaining momentum. I like debating this and welcome all responses..... it just shows that people do care about downtown Rochester, and want it to succeed!!!!
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