Quote:
Originally Posted by bayou15
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This is from the 3/2 Press Register:
"Overall, office building occupancy is solid and lease rates are rising, according to Gavin Bender Sr. of Bender Real Estate Group. He said that he sees a future need for additional professional office buildings, but that will be determined by construction costs, which are high.
For example, an office building he built in 2001 at $115 per square foot would cost $185 to $195 per square foot today, he said.
The 35-story RSA Battle House Tower has had "an incredibly positive impact on downtown Mobile," he said. Most of the large office buildings still have a high occupancy rate, from 88 to 95 percent, according to his surveys.
"All of us naysayers, and I was leading the pack, said the existing buildings would be desperate for tenants after RSA was built. We are thrilled to find out that the bar has been raised. Other office buildings' occupancies have stayed stable, and many have chosen to make capital improvements. We're seeing an increase in rates."
About 80 percent of the RSA Tower has been leased, with about 90 percent of the tenants local."