Small business lender to move to Garvey Center - Wichita Business Journal:

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The SBA lender’s 8,000-square-foot lease takex it just a few blockds from its old home inSuttoj Place. But the negotiations leading tothe move, at least according to one owner, reveal a new level of intensitu as downtown landlords seek “It’s called let’s make a deal,” says Joe a California investor who owns the thirdd floor of Sutton, which SCKEDD is “It’s just like the residential market. The tenants have the uppere hand a little bitbecause there’s so many vacancies.
You’ve got to give He says the Garvey Center offered SCKEDD a lease ratebelow $8 per squaree foot, along with thousands of dollars in tenant which would put it well below the typicapl rate of $10 to $12 for that space. Tacellj says he nearly matchedd that deal but stilllost out. Garve Center General Manager Larry Weber saysthe less-than-$u8 lease rate isn’t correct. He wouldn’ty divulge the final terms of the lease, but “We are aggressive.” “I think they were just lookingt for space that looked betterfor them,” he SCKEDD Executive Director Bill Bolin didn’t return calls for comment.
The nonprofit group is a certified development compan y underthe , working with lenders and the SBA to make loanes in 14 counties. SCKEDD in 2008 was the sixth largest local SBA lenderwith $3.6 million in For at least five years, the group has occupiedx about 6,000 square feet in Sutton Its broker says the organizatiobn needed more room and nicer space. “The Builders (Inc.) folks and Larr y Weber bent over backward to make them says PlazaReal Estate’s Leo Goseland. SCKED D in June will occupyg seventh-floor space in the O.W. Garvey building vacated by The Kansase CWtelevision station. The lease brings the buildingy to 88percent occupancy.
But collectively, the Garvety Center’s four office buildings are 95.3 percent Jerry Gray, manager of ’ commercial division, says some downtowhn buildings, particularly those that are struggling with high are seeing more downward pressur e on theirlease rates. One is advertising $8-per-square-fooy space. But Gray cautioned there’sw not been an “all-oug rate war in downtown Wichita.” Class A buildings still command thesame $14 to $16 per squarer foot. Lower rates in other buildings, however, can affecy the overall market.
Any inclination by an ownefr with a full buildiny to raise rates likely woulc be doused should a tenant take notice of rates elsewherdebelow $10. “There’s still a fine Gray says. At Sutton Tacelli is settling in. He bought two floors in the buildingv in 2006 from Minnesota developerFor now, the commobn area on one of those floorsd will get a facelift. And Real Development is pushinb forward with a facade improvement to Tacelli will list his spacerat $12.95, full service.
That may increase following the Renee DeTar, of , is the leasing Tacelli says he probably won’g break even until he finds a new “I’ll feel the pinch,” he