This quarter may not be a good time to sell your house, but it could be a great time to purchase your office.
Neyer Properties, Inc. now offers a unique buy/lease option with the development of its $18 million Kenwood Crossing II, an innovative, two-story office/condo complex located near the Kenwood and Galbraith Road intersection in Sycamore Township. Construction is underway, with completion set for May of 2008.
The building is part of a Class A office campus consisting of three brick and stone facade buildings connected by landscaping and sidewalks, all attractive features for office users, said Dan Neyer, Neyer Properties, Inc. president.
The architecture is modern, the building implements green building technologies, office space is divisible from 1,500 square feet up to 31,000 square feet, which is ideal for both tenants who want as little as 1,500 square feet or those who need an entire floor.
The sales/lease option has been offered for some time in East and West coast Class B commercial real estate markets, but is an emerging offering in Cincinnati and the Midwest in Class A space. “This next evolution of office condo developments with all the features of Class A office structures such as individual elevators, decorative lobbies, and common restrooms will provide long-term appreciation in value that owners desire in the market as compared to other office condos without these amenities,” said Neyer.
Typical office condo purchasers are small business owners who want the tax benefits and property equity advantages of owning rather that leasing office space. As with residential condominiums, office condo owners pay a property management fee for grounds and building maintenance.
Located diagonally across the street from Jewish Hospital, the Kenwood Crossing II offices are suitable for medical or business space. The building is convenient to I-71, provides ample parking, and is located in an unincorporated area with no personal earnings tax.
Green building has become a trademark of Neyer Properties” commercial projects. Redbank Crossing, Kenwood Crossing II, Keystone Parke and future projects all emphasize green construction and elements, said Neyer Properties construction manager Charlie Pond. “The Kenwood project features a reflective roof, low water-usage plumbing, high-efficiency glazed windows, and all-fluorescent lighting, reducing energy usage by 25 percent,” said Pond. Despite reports of a looming recession, Pond said 2008 looks to be very profitable, with 2009 “really booming.”
Neyer said while the current residential housing pricing correction may be uncomfortable for home sellers righ now, there is a silver lining for commercial project developers. “The correction eases the increased cost of construction materials and calls for lower interest rates, which makes the possibility of office/condo ownership an attractive option,” he said.
Kenwood Crossing I, a 46,000 two-story building developed by Neyer Properties in 2005 is 100% occupied and its tenants consist of medical office users. Construction on Kenwood Crossing III, also office/condo space, will begin in the latter part of 2008. That development will be a three-story, 45,000 square foot building.