Kaufman Buys Office Building Near Florida Mall

Kaufman has retained Carter to lease and manage the asset. Mary Frances West, a Carter vice president, will handle the leasing. The building was formerly known as the CNA Insurance Building and was totally renovated in 2000 by the previous owner, West tells GlobeSt.com.

"In the Orlando Central Park market where the 1707 OCP Building is located there is no 'nice' small office space," West says. "Kaufman's concept will work nicely there and when the building is compared to others in the marketplace that have, quite frankly, not been maintained or renovated, there will be no comparison."

Kaufman plans to renovate the remaining vacant space and build out spec suites for small tenants, "staying consistent with the firm's small-tenant business plan," West tells GlobeSt.com. The average asking rental rate for the spec suites is $16.50 per sf, full service. The three spec suites being built out are 1,500 sf, 1,310 sf and 1,628 sf. Occupancy is slated for April.

The overall leasing picture for the metro area in 2005 "looks better" than it did in 2004, West says. "In the central business district, we have CNL Tower II going up and [Carter vice president] Scott Bell has leased the majority of the building," the broker says. "I think when [the law firm] Ackerman Senterfitt moves in December 2005 or January 2006, Citrus Center will have a big hole to fill."

In the suburbs, the University office market is "pretty strong due to the defense simulation and Homeland security-type tenants and university-related tenants," West says. "My University Court is 100% leased with two sublease spaces that have only been on the market one month. I had a tenant almost take the space before Christmas and then a CCO nixed the deal. I have three tenants that I am going to work with" to fill the space.

Also in the suburbs, the Lake Mary submarket "still has softness, but my Primera Court I and II only have two 1,408-sf spaces vacant out of 66,000 sf," West says. "We keep the rate very competitive at $15 to $15.50 per sf modified gross, which grosses up to about $17 to $17.50 per sf, full service."