1736 Magazine - Fall 2018

PHOTO BY MICHAEL HOLAHAN
glass-clad exterior during the next two years.
A recent office-space study conducted by the
Downtown Development Authority estimates
nearly one-quarter of downtown’s 1.5 million
square feet professional space is vacant, with
rental rates ranging from $14 to $23 a square
foot, depending on the “upfit” costs, the price
tenants pay to “build out” the space they lease.
Space in the $100 million Georgia Technology
Authority-owned Georgia Cyber Center, whose
phase II building opens in December, lists at
more than $30 a square foot.
Dye, who said rates for the SunTrust Building
are in the “high teens,” said he expects office
rents will start creeping up as move-in ready
space in the central business district fills up.
That, in turn, could encourage owners of vacant
or sub-par office buildings to get off the fence
and invest in their properties.
“There is space available downtown, but when
once that space goes, where is the next step?” he
said. “There is too much going on downtown for
people not to want to be here.”
Aside from repurposing long-vacant buildings
such as the Kress and J.C. Penney department
stores, on the 800 and 700 blocks, respectively,
Beman said the biggest renovation
potential lies in the Lamar Building, the vacant
102,000-square-foot office tower at 753 Broad
St.
The century-old building, considered Augusta’s
first “skyscraper,” has been owned by an
Aiken, S.C., businessman since December 2016.
Beman, the property’s marketing agent, said
renovating the building has become much more
feasible since its owner acquired a share of its
rear parking lot earlier this year. The balance
of the lot is controlled by the Augusta-based
investment group that owns the nearby Marion
Building, another fully vacant property with
office or residential potential.
Aside from parking, Beman said, the biggest
challenge to creating move-in ready office space
on Broad Street is the high risk and low return
on investment given the current lease rates.
Bringing an older structure the size of the Lamar
Building up to modern fire codes, for example,
could easily exceed $1 million.
“If you look at downtown Augusta, there’s
no lack of available property, there’s a lack of a
revenue stream behind it to do something with
it,” he said. “This isn’t Birmingham (Ala.) or
Greenville (S.C.) where the rates can justify what
you want to do.” •
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