Small Office Users Rush to Rent Total 30,934 SF Before Expected Rate Rise

"The market is beginning to favor landlords," Hall says. "Tenants are seeing an increase in rates and a decrease in concessions." Hall adds, "One of the biggest hurdles for tenants is receiving a sufficient amount of tenant improvement dollars to keep up with increasing construction costs."

Diabetes and Endocrine Center of Orlando PA took a year to complete a 10,750-sf deal for 10 years at an estimated $2 million. The property is at 3113 Lawton Rd., a 20,640-sf, 38-year-old building owned by Colonial Properties Trust. Hall negotiated for the tenant. Tom Green of Colonial Properties represented his firm. The lease brought the building to 100% occupancy. Full-service average rent is $18 sf.

AmeriElite Properties has leased 7,810 sf for five years at Duke Realty Corp.'s 1142 Celebration Blvd. property, bringing the occupancy of the seven-year-old, 62,800-sf building to 100%. Hall and John Gilbert negotiated for Duke. There was no tenant broker during the three months of negotiations. Average asking rent is $12.50 per sf, triple net.

At the 430,000-sf, 17-year-old Bank of America Tower at 390 N. Orange Ave., Downtown, Dermalogica leased 4,371 sf for five years, bringing the building to 80% occupancy. Hall negotiated for the tenant. Kirk Fetter of Dallas-based Gaedeke Group represented his firm. Average full-service rent is $25 per sf. The deal took eight months to complete.

In a second deal at the Bank of America Tower, MTV Networks Enterprises Inc. leased 3,774 sf for five years. Hall negotiated for the tenant. Fetter represented the building owner, Gaedeke Group. The deal took two months to complete.

In a sublease deal at the 192,159-sf 1001 Heathrow Park Lane building in suburban Heathrow, Temenos Inc. took 4,229 sf for five years. The lease brought the four-year-old property to 92% occupancy. Average full-service asking rent is $22 per sf. Hall negotiated for the tenant in a deal that took three months to complete, from contract signing to closing. Mike Phipps of CBRE Orlando represented the sub-landlord, Nascar Enterprises LLC.