Behringer Harvard officials say Fifth Third Center's credit tenants, below replacement-cost purchase price and its long-term potential made it an attractive buy. They also like what they see in the market. "First and foremost, Cleveland has been improving rather steadily," Jason Mattox, executive vice president of Behringer Harvard, tells GlobeSt.com. "This particular asset stands out as one of the very best in the market."
CB Richard Ellis has been tapped to market space at Fifth Third Center, which is currently 85% leased. Major long-term tenants include Fifth Third Bank, a financial services company, at 99,000 sf; and McDonald Hopkins, a law firm, at 79,000 sf.
Built in 1991, Fifth Third Center is within walking distance to major office buildings, courthouses and retail in the CBD. The office tower's amenities include a restaurant, gift shop and conference center, and its five-level parking garage has 428 spaces. Behringer Harvard REIT I Inc. also owns assets in Chicago, Atlanta, Houston, Denver, Philadelphia, Washington, DC, Baltimore, Los Angeles and other cities.
Overall, the Downtown office market continues to show steady improvement, according to a CB Richard Ellis third quarter report. The vacancy rate of 19.72% is the lowest since year-end 2003. Meanwhile, vacancy in class A space is down to 14.10% from 16.20%.
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