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Orlando Office Space Sells For Bargain Prices

Thursday, May 15, 2008 11:54:01 PM
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ORLANDO -- Thousands of brand new office space at The Plaza in Downtown Orlando went on the auction block Thursday, much of it selling for bargain basement prices.

The Plaza was developer Cameron Kuhn's massive project covering one city block on the east side of Orange Avenue, between Church and Pine streets.

Most of two commercial towers sold in the usual manner, but with the downturn in the real estate market, the owners decided an auction was the way to go for the remaining space.

In a first for the city, 117,000 square feet was sold off to the highest bidders, but it was a tough sell.

Developers said pre-construction pricing started at $205 per square foot, with eventual sales ranging up to $285.

Other units listed at $260 per square foot sold for $138, and a three-unit block listed at $285 per square foot sold for $150.

"I thought the prices would be higher," said Roger Soderstrom, of Stirling Sotheby's International Realty, which conducted the auction. "Again the market was set, and from the competition, these were the prices that were established."

All units sold at The Plaza, aside from the 10th floor. Soderstrom said Kuhn wanted to hold out for higher bids on that unit, which would be sold at a later date.

Soderstrom said there were already five buyers who are interested in purchasing the 10th-floor space.

 

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