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Actor Bernsen enjoying ride of derby movie project
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Angel Food Ministries helps stretch grocery dollars
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Vacancy rates down in Northeast Ohio, Akron. Growing medical sector one reason
By Paula Schleis
Beacon Journal business writer
Published on Monday, Sep 29, 2008
In the Akron area, only 8 percent of available office space is currently vacant, down from nearly 12 percent in early 2007.
That's the latest snapshot of a segment of the region's economy from Team NEO, an economic development group charged with marketing the area to new businesses.
Each quarter, Team NEO's researchers tackle a different topic to spot trends and illuminate economic activity, Chief Executive Officer Tom Waltermire said.
This summer, Team NEO took a look at industrial space and concluded the vacancy rate was at less than 9 percent, a five-year low. In Akron, unused industrial space was halved in the past four years, from 16 percent in 2004 to 8 percent this year.
The office space review is the other half of that story.
Team NEO researcher Jacob Duritsky pointed out that ''Class A'' office space — the most highly valued investment grade property — is particularly strong. It fell from a regionwide vacancy rate of about 19 percent in 2003 and 2004 to about 12 percent today.
''Several new developments have been proposed with some of the highest asking rents that Northeast Ohio has ever seen,'' he added.
Class B space (said to represent good value) has a current vacancy rate of 13 percent, and Class C space (called utilitarian) stands at 9 percent.
Overall, Northeast Ohio's office market vacancy rate of 12 percent is nearly on par with the U.S. average of 11.5 percent, and lower than many major U.S. markets, including San Diego, Chicago, Atlanta, Las Vegas, Phoenix and Dallas, Duritsky said.
''In some ways, the findings that we're doing so well compared to those markets [are] pleasantly surprising,'' he said.
Waltermire said in light of other reports that Team NEO has presented, the findings of the office space analysis makes sense.
For instance, a Team NEO work force study showed how production jobs have been declining while the service sector is growing — so logically, there would be more demand for office space.
Another Team NEO report found that higher-paying jobs in Northeast Ohio are growing at a faster rate than lower-paying jobs. And that, he said, could explain why more Class A space is getting filled.
In Akron, the growing medical sector is consuming a lot of new office space, said Michael Wojno, founder of Wojno Development.
Recent projects he's been involved with include the renovation of the one-time post office known as the Mayer building on East Market Street, which is housing some Summa Health System functions, and a $20 million acute care facility next door.
The need for office space will only continue to grow, he added, citing the city's designated ''biomedical corridor'' that is attracting bioscience companies to a geographical cluster, and alliances between the University of Akron and the city's three hospitals that are expected to spin off new enterprises.
Paula Schleis can be reached at 330-996-3741 or pschleis@thebeaconjournal.com.
Get the full article here.
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