Buffalo Rising Online

Jun 13th 2006, 10:21am By West Coast Perspective

Two recent Buffalo office developments hit home runs targeting different tenant types and ideal timing. The largest office projects completed in over a decade, the Larkin at Exchange building and Niagara Center are almost fully occupied.

With the Larkin at Exchange building, timing was important but the building proved to be a winner. CityView Properties purchased the mammoth circa-1912 Larkin Co. warehouse at the corner of Van Rensselaer and Exchange Streets in 2002 after being vacated by Graphic Controls. Over the next two years, the developer spent over $12 million transforming the 10-story, 600,000 sq.ft. building into a multi-tenant office facility. It was not without risk. Though located just one half mile from Main Street, the area was not a proven office location. In addition, the building represented a sizable five percent addition to the cityis office space inventory. If built as a skyscraper, it would easily be over 30 stories tall.

The building offers large 60,000 sq.ft. floors, readily available parking, on-site day care, an exercise room, cafE, a convenient location, and competitive lease rates. It also helped that it was delivered in front of the market, just as demand was increasing and large blocks of space werenit readily available downtown. The first large tenant was collections firm Capital Management Services taking 40,000 sq.ft. of space. In 2003, the building scored a coup by leasing 90,000 sq.ft. of space to Kaleida Health for its back office operations and the building instantly became a viable alternative for any firm in the market for new space. Since then other large leases were signed by law firm Harris Beach relocating from Hamburg, US Bureau of Customs, NOVA Casualty insurance, and two firms that moved due to the pending demolition of 120 Delaware Avenue: Public relations firm Travers, Collins & Co. and law firm Kavinoky & Cook. In February, First Niagara leased the last full-floor of vacant space, taking the ninth floor for its regional market center. Numerous smaller tenants, including Hillary Clintonis local office, bring the building to approximately 95 percent occupancy with over 1500 workers.

Closer to downtown, the $40 million Niagara Center office building at 130 S. Elmwood Avenue also quickly filled, but largely with federal government offices. The General Services Administrationis decision to vacate the Dulski Federal Office Building sent real estate developers and property owners scrambling to secure relocating federal tenants. Several developers proposed new buildings while others were courting GSA with existing space. Acquest Development proposed a new building literally across the street from Dulski and was so successful with securing federal leases, it expanded the building to eight floors with 290,000 sq.ft. of space and brought Uniland Development in as a partner. Completed in early 2005, it is largely occupied by government agencies including the Internal Revenue Service, Department of Veterans Affairs, Small Business Administration, and the National Labor Relations Board. CB Richard Ellis is marketing the remaining 13,339 sq.ft space.

Each building hit the market at just the right time and filled a need. Today there arenit many viable options for large users and developers are once again planning for new construction. Details on two new projects in a future post.

Get Connected:

CityView Properties: 856-8400 or CB Richard Ellis: Shana Stegner, 855-3700

Photo credit: CitySky Photography by Nate Farnsworth.