The developers are bullish on the project, called Office Court on Inverness, because it is aimed at the small tenant. It is the only place in the metro area where a tenant needing less than 1,000 sf can have a brand new building, with a separate entrance and a class-A location, the developers say.
Developers include Larry, Ken and Andy Joseph and Tom and Steve Gutrich. Tom Gutrich built a similar product called Creekside in the Denver area in the '70s and '80s and Steve is his son.
Brothers Ken and Andy Joseph are developing similar properties in Santa Fe, while their father, Larry, began offering this concept in the 1960s in north and northwest Chicago suburbs.
One aspect all of the units possess dates back to Larry's foray into the area, his son, Ken, tells GlobeSt.com.
''Back in the '60s, my dad hired some teachers on summer break to survey small businesses in Chicago suburbs to determine what they wanted in a small office building,'' he tells GlobeSt.com. ''No surprise, cost was really important. But they also wanted windows that could open. So our windows open.''
Since the company was formed, the company has developed more than 1 million sf of buildings aimed at small tenants in the Chicago area and has consulted on another 3 million sf in various parts of the country.
So far, they have neither leased nor sold any of the units at the Office Court on Inverness.
They only decided to sell something less than half of the square footage to meet a growing demand for small companies that would rather own than rent.
''But we have 13 active prospects,'' Ken Joseph tells GlobeSt.com ''They are looking at anywhere form 750 sf to 7,000 sf. They're in the energy business, an entrpreneurial conglomerate, an advertising agency, finance. So it's the whole gamut. Exactly what we thought our target market would be.''
Doug Wulf, who is marketing the project with fellow Fuller and Co. broker Dan Miller, says he thinks Office Court on Inverness will be 50% sold or leased fairly soon.
''Quite frankly, theirs is a tremendous deamdn for small users today,'' Wulf tells GlobeSt.com. ''Especially along the southeast corridor, there's no other place where a 1,000-sf to 5,000-sf user can buy his own unit.''
Units are priced from less than $200,000 to more than $4 million, while rental introductory rental rates are starting at $17.50 per sf.
Because there are no common areas to pay for, tenants can achieve sizeable savings over traditional offices, Joseph says. Also, the buildings are so efficient that tenants can rent less space than they think they need, he says.
''In one proposal, we had someone who said it needed 2,500 sf and because our buildings are so efficient, we showed him how he only needs 1,700 sf,'' Joseph tells GlobeSt.com. ''Another tenant says it needs 4,000 sf, and we can put them in 2,800 sf.''
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