Downtown vacancies not necessarily a bad sign
Posted on 20. Nov, 2009 by yvettedavis in Real Estate/Construction
by Yvette Davis
Some downtown Wenatchee buildings are vacant, but things are not as bad as they might appear, according to Realtor and property owner Cheri Dudek, property owner Dave Gellatly and Wenatchee Downtown Association Executive Director Sarah Dempsey.
It’s good for downtown building owners to be picky about tenants, they said, even if it means a space takes longer to rent. And filling large spaces isn’t easy.
How to get downtown buildings full is the current focus of the WDA’s new Economic Redevelopment Committee. Dudek heads the seven-member committee.
“Our focus is working on the large vacancies and what we can do to make the spaces more attractive to tenants,” Dudek said.
One idea is to break up the space. Not every type of business needs 10,000 square feet, she said, but if those large areas could be broken up with retail in the front and offices in the back, it might make more sense.
Gellatly agreed.
“Take the old Rialto Theater (formerly Paula’s Bridal) building, for example. It could be broken up into pieces and used that way,” he said. “But from a property owner’s standpoint, they are going to want a letter of intent or a signed lease before putting more money into the building. It’s not always feasible for the owner to just up and do that.”
Dempsey said she understands.
“Part of the culture of Wenatchee is it is very private-enterprise driven and it is up to the building owner what they do, but the committee can educate people about the possibilities,” she said.
All three agree that the amount of vacant square footage in downtown is large. The former Wells and Wade building at 20 S. Wenatchee Ave. has 10,000 square feet vacant and the now closed Home Center space at 135 N. Wenatchee Ave., owned by Gary Dore, provides another 12,000 square feet for lease on the ground floor.
Other vacancies include 6,000 square feet in the former Paula’s Bridal Boutique building at 7 S. Wenatchee Ave., and 5,000 square feet in the former Elements University building at 34 N. Wenatchee Ave.
But the slower economy hasn’t slowed inquiries from people looking for space to lease.
Dempsey said her office fielded a high number of calls this summer.
“They are all looking for a half-price deal, though, which isn’t good for anybody. When you do a short-term lease with a tenant, and that tenant leaves at the end of the term, it gives the impression that downtown has a high turnover rate or is failing. That’s not true.”
- DAVE GELLATLY
“They are all looking for a half-price deal, though,” Gellatly said. “Which isn’t good for anybody. When you do a short-term lease with a tenant, and that tenant leaves at the end of the term, it gives the impression that downtown has a high turnover rate or is failing. That’s not true.”
Unlike the Wenatchee Valley Mall in East Wenatchee, which is owned by a single entity, Vintage Capital Group LLC, Wenatchee’s downtown is a patchwork quilt of ownership and each landlord has different criteria.
Add to that the caveat that each building is its own microcosm and one can begin to see the difficulties inherent in creating a plan for downtown.
Dudek, who is the landlord to the The Kitchen Sync and Cribs 2 Bunks, said she had a waiting list for the former Belly to Baby space at 23 N. Wenatchee Ave., and did no advertising.
By contrast, Gellatly said he has had the former Tree House building vacant for three or four years. He’s had interest, he said, but not from the right person. Gellatly said his criteria for a ground floor retail space is a three-year lease, preferably with someone who has already been in business for a while and has a good business plan. In addition, it needs to be a good fit with the neighboring tenants.
“You don’t put a pawn shop next to a high-end jewelry store for example,” he said.
Still, Dempsey said, the WDA is committed to looking at all kinds of tenants for the downtown spaces, not just retail ones.
The ERD committee is open to suggestions from WDA members, property owners and residents. The ERD committee meets at noon the fourth Tuesday of the month. Contact Dempsey at the WDA for information.
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