Peter Hayes, Cushman & Wakefield|Hayes & Sherry

With very limited new development of office space in Rhode Island over the last year, the vacancy rate has continued to decrease throughout the State.  In the first quarter of 2015, the Providence vacancy rate was 13.5%.  Today, the vacancy rate is 12.5%.

The property formerly known as “Dynamo House”, originally built as an electrical power plant, is now referred to as South Street Station.  CV Properties is under construction to build-out 130,000 s/f of shared nursing school space for University of Rhode Island and Rhode Island College, and 135,000 s/f of administrative office space for Brown University.  A 600-car parking garage is under construction in the abutting site.  Additionally, there is a large student housing development planned by the same developer.

The former Providence Journal building at 75 Fountain St. sold in September of 2014 to Cornish Associates, headed by Buff Chace, and Nordblom Company from Burlington, Mass.  Renovations got under way in 2015 which will result in 160,000 s/f of office space and 10,000 s/f of restaurant and retail space.  The new owners of the Providence Journal, New Media Investment Group, had considered moving out of the building.  In the end they decided to stay put and consolidate into 30,470 s/f, becoming the first long-term tenant for the building.

The 19 developable acres controlled by The Rte. 195 Development District Commission is being branded as “The Link”.  In January, Wexford Science & Technology and CV Properties entered a purchase agreement for 5 acres.  The development plans discussed are for 500,000 s/f of research & development, lab and office facilities, an innovation center, as well as restaurants, hotel and a residential complex.

The 195 Commission has also made a deal with Royal Oaks Realty LLC, a Churchill & Banks entity, to purchase one-third of an acre in the Fox Point neighborhood for construction of a 7-story building that will include apartments, office and retail space.

Our firm was broker of the sale of Victory Place, a 5.3 acre site located at the juncture of Rtes. 95 and 195.  Rhode Island Hospital purchased the property from JAG Investment Realty for future expansion.

In the suburbs, the West Bay vacancy rate went from 16.8% in beginning of 2015 and now is at 12.8%.  Michael Integlia & Co. has plans to develop 400,000 s/f at One City Center.  This is a mixed-use development located on Jefferson Blvd. in Warwick across the street from the MBTA train station and the T.F. Green Airport parking garage.  The other proposed Integlia development is One MetroCenter, a 100,000 s/f, 4-story first-class office building located on Metro Center Blvd., abutting the airport connector.

The Northwoods Office Park in Johnston, has approximately 175,000 s/f available in the 341,000 s/f, first-class office building located on a 150-acre campus off Rtes. 295 and 6, five miles west of Providence.  The 175,000 s/f is the largest amount of office space available in the Rhode Island suburbs.

Citizens Bank just announced its plan to purchase 109 acres in Johnston along Rte. 295 to build a 420,000 s/f corporate office campus to consolidate 3,200 employees at the end of 2018.

The East Bay vacancy rate was 9.2%.  Today the rate is 8.1%.  Marshall Properties is nearing completion of a 72,000 s/f, first-class medical office building.  The lead tenant is University Medicine which will occupy 54,000 s/f.

Governor Gina Raimondo, with little over a year under her belt, continues to look for out-of-state companies to entice to relocate or expand in Rhode Island.  Armed with new legislation that offers tax credits, incentives and grants, Rhode Island is finally “on the map” for companies to consider when looking for a new home.

Peter Hayes is a partner with Cushman & Wakefield|Hayes & Sherry Real Estate Services, Providence, R.I.