INDIANAPOLIS (AP) — The 48-story Chase Tower in downtown Indianapolis is struggling to fill vacant space, according to a report from a commercial real estate firm.
The report from Cushman & Wakefield says Indiana’s tallest building had an occupancy rate of 68 percent at the end of October. The tower has more vacant space than it has had in decades, the Indianapolis Business Journal reported.
Fourteen floors are vacant, including four that were once occupied by the building’s signature tenant, JPMorgan Chase & Co., according to the report. A total of 288,500 square feet are available for lease.
“It wasn’t too long ago that it had pretty high occupancy,” Cushman & Wakefield office broker David Moore said. “What’s been most impactful is the Chase sublease space, which has come on and off the market a few times. When it’s formally on the market, it has a big impact on the tower and the overall downtown market.”
The building’s current owner paid $201 million for it in 2012. The tower was 95 percent full at that time, but occupancy fell to 79 percent at the end of 2014 and to 68 percent through the first nine months of 2015, according to the Cushman & Wakefield report.
Half the current vacancy is accounted for by downsizings by Chase and other tenants who gave back floors for sublease.
Adam Broderick, an office broker at Chase Tower leasing agent Jones Lang LaSalle, disputes the 68 percent occupancy rate figure. He said Chase and others are still paying rent on their space available for sublease, and thus it shouldn’t be counted as vacant.
Broderick put Chase Tower’s current occupancy rate in the low-80 percent range. He said fortunes for the building are improving, and it has garnered 50,000 square feet of deals this year.
Cushman & Wakefield’s report tracks vacancies at the 14 largest office buildings in downtown Indianapolis. The buildings had a combined occupancy rate of 81 percent at the end of September, up from 77 percent at the start of the year.