X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

OAK BROOK, IL-Despite a lower occupancy rate across its Midwest suburban office portfolio, led by a 59,000-sf vacancy caused by the move by Wausau Insurance from One Park Place in suburban Milwaukee, Great Lakes REIT eked out an increase in funds from operations of $0.02 per share. The REIT reported funds from operations of $9.4 million, or $0.56 per share, while its overall occupancy rate dropped nearly 2 percentage points to 90.5%.

“Due to current economic conditions, we continue to see leasing challenges ahead for the remainder of 2001,” says Chairman and CEO Richard A. May. “Uncertainty is the problem. Tenants are taking a ‘wait and see’ attitude in determining their office space needs and, as a result, net absorption has turned negative in most of our markets.”

The 198,304-sf One Park Place was nearly half vacant at the end of the second quarter. Meanwhile, the REIT continues to cure a vacancy problem closer to home, in the 149,494-sf Lisle Executive Center. A 29,000-sf lease with Intrado has increased occupancy from 69% to 89%, and “a prominent international company” may take another 5% of the total space in the fourth quarter. “We made getting that space leased a top priority,” says President and COO Patrick R. Hunt.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.