According to Grubb & Ellis, office rental rates in the nation' central business districts (CBDs) declined in the first half of 2001, following sharp increases from 1998 through 2000. Asking rates for available Class A space slipped by 5 percent in the first half of 2001 after an uphill run of 51 percent in the prior 3 years. Class B rents declined by 8 percent after a 67 percent jump in the prior 3 years.

Limited space for new development is another challenge facing developers that want to build in CBDs. While some cities are feeling the effects of these problems, many are rising above this slowdown. Developers are finding ways - and places - to build new office buildings in CBDs. The old adage about building up if you can1t build out is obviously true in many cities and can be seen through the transformation of their skylines. This article provides a look at just some of the new office projects making their way into Southeast cities.

Washington, D.C.' CBD continues to prosper despite what' going on in the rest of the country. D.C. has the advantage of being home to many governmental headquarters and offices, as well as many large law firms. These steady tenants make for a healthy market, according to Robert Murphy, managing director, development services, for Trammell Crow Company' Mid-Atlantic region. "Our supply and demand dynamics are really superb," Murphy notes, adding that the vacancy rate for the district is currently at 4.5 percent. Of the 5.5 million square feet currently under construction, 65 percent is pre-leased.

The district' CBD will soon be home to 1625 Eye Street, a 400,000-square-foot office building. The 12-story structure is under construction now, with tenant occupancy scheduled for the first quarter of 2003.

The project is being developed and managed by Trammell Crow Company and financed by Union Labor Life Insurance Company (ULLICO). The building' most distinguishing feature is its architectural design by Skidmore, Owings & Merrill LLP. Faced in buff-colored limestone and Low-E glass, with dramatic fa¥ade setbacks, the exterior culminates in an illuminated campanile tower that soars 160 feet above Eye Street.

The architectural team calls the design a modern interpretation of a Renaissance-era European cathedral. The tower allows each floor to have a 1,070-square-foot, column-free, windowed suite, well positioned as a conference space or prominent executive office. A rooftop terrace is also available exclusively for tenant use.

Other features of 1625 Eye include its high-speed communications backbone, high-efficiency HVAC and electrical systems, comprehensive security controls and 5 1/2 levels of underground parking. Served by Farragut West, Farragut North and McPherson Square Metro stations, 1625 Eye will total 400,000 square feet of office space and 15,000 square feet of retail space. Retail amenities will include white tablecloth and deli eating establishments, a fitness facility and a bank with an ATM.

Overlooking Biscayne Bay in Aventura, Florida, Harbour Centre is the first office building to be built in the city in 12 years. "Aventura is a suburban market and has historically been very tight," says Walter Robinson, vice president of project leasing for Trammell Crow Company in Miami. The Trammell Crow team of Laurel Lucas, project leasing associate, Gary Corbman, senior associate - retail, and Robinson serves as the exclusive leasing agent for Harbour Centre.

Developed by Harbour Centre Associates at a cost of $45 million, Harbour Centre is destined to become the premier corporate address in north Miami-Dade County. The building will have direct ocean and bay views and is being built on a 3.9-acre bayfront site. It will feature 230,000 square feet of Class A office space, 17,500 square feet of ground floor retail and a 6,500-square-foot outparcel. Harbour Centre will also include a formal two-story atrium entrance with common areas finished in marble, granite, stainless steel and glass, nine-foot floor-to-ceiling windows and hurricane-proof glass. Amenities include a covered parking garage, a high-tech security system manned by 24-hour security personnel and "smart" building features utilizing cutting-edge technology, including high-speed Internet access and fiber optic cable.

Located within walking distance of a vast selection of retailers and restaurants in prestigious Aventura, the 11-story tower will be the largest building in Aventura. "Locationally, Harbour Centre is in the epicenter of the Aventura business market," says Robinson. The building is located immediately south of the Dade-Broward County line, and tenants will have easy access to the business districts of Miami-Dade, Broward and Palm Beach counties via Interstates 95, 75 and 595, and State Routes 826, 836 and 112 and Florida' Turnpike. Additionally, tenants will be just 10 minutes from Fort Lauderdale/Hollywood International Airport and 35 minutes from Miami International Airport.

Charlotte, North Carolina' CBD also recently changed its look with the addition of the Hearst Tower, a 1.7 million-square-foot, 47-story building. The tower, which will be the second tallest building in Charlotte, is being developed by Trammell Crow Company and The Keith Corporation. The general contractor for the Hearst Tower is Shelco/Batson-Cook, a joint venture partnership of Batson-Cook Construction and Shelco, Inc., of Charlotte. Bank of America will occupy approximately 40 percent of the building, and other tenants include Hearst Corporation and PriceWaterhouse Coopers. Completion is scheduled for the first quarter of 2002.

Bank of America has had a hand in another project reshaping downtown Charlotte' skyline: the office portion of Gateway Village. Cousins Properties and Bank of America are currently developing the 15-acre mixed-use development, which encompasses five city blocks. The office portion totals 1 million square feet of office space in two buildings that are connected by a glass atrium.

Developed by Miami-based Panther Real Estate Partners, One Riverview Square is the first private office building to be built in downtown Miami in more than a decade. The eight-story, 163,000-square-foot office building, located at the corner of South Miami Avenue and SE Fourth Street, features ground floor retail and a riverfront restaurant. Dorsky Hodgson & Partners of Fort Lauderdale, Florida, served as project architect.

With a site encompassing 1.7 acres directly on the Miami River, One Riverview Square is within walking distance of Brickell Village as well as the courthouses and government center of downtown Miami. Adjacent to a Metromover stop, the location gives tenants immediate access to mass transit while Interstate 95 is equally accessible, putting Miami International Airport within 15 minutes of the building' front door. Other amenities include 24-hour secured access, on-site, secured garage parking and extra riser space for fiber optic connections and high-speed broadband Internet access. Completion is slated for January of 2003.

Recently completed in Coral Gables, Florida, 355 Alhambra Circle is a 16-story, 233,000-square-foot Class A office building recently built by Codina Group' development division. It is the first Class A office project to be completed in Coral Gables since 1999. Codina Realty Services, Inc. ONCOR International has signed the first six tenants to leases totaling 54,800 square feet. Tenants include Zubi Advertising, International Life Services, Lott & Friedland, Spencer Stuart, Qwest Communications and Vestrust Services. Codina Realty Services, Inc. ONCOR International is also the exclusive leasing agent for the Omni Technology Center in downtown Miami. Developed by New York-based Argent Ventures, the 1.1 million-square-foot Omni Technology Center is located at 1601 Biscayne Boulevard, and features space to accommodate telecom companies, and includes office and retail components.

©2001 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.