The May 4 fire at the 62-story, 1,009,000-square-foot First Interstate Bank tower will have little or no short-term impact on the downtown office space market, but it could have a long-term one, according to Burnett Facer of Grubb & Ellis Commercial Brokerage Services.
His comment was made coincidently with the release of a report by Grubb & Ellis showing that about 7 million square feet of office space will be added to the downtown area in the next five years.
Facer said about 250,000 square feet were vacant in the building at the time of the fire. All of the tenants can be accommodated, given the 12.37% vacancy factor cited by Grubb & Ellis (3.9 million square feet vacant from an existing base of 24.7 million square feet).
However, if the First Interstate building is completely rebuilt, as is anticipated, it would add about 1 million square feet to the nearly 7 million square feet that will be added over the next half-decade, he said.