Southpointe Occupancy Rate is an idicator of Business Recovery

September 11th and the subsequent business slump created 30% commercial vacancy rates all along the corridor of I79, including here in Southpointe.

The situation was exacerbated when a couple large tenants completed new construction within the Park and vacated existing buildings to move into their new Southpointe head quarters. A few tenants (like BroadStreet Communications) closed their businesses entirely. Others downsized work forces and put space up for lease. Still others consolidated their operations by closing new offices in Southpointe and relying on older established offices located elsewhere (like Underwood Travel Agency and Larsen Engineering).

In step with leading indicators for the national economy, occupancy rate in Southpointe has risen to approximately 90% of available Class A & B Office Space under lease and 82% of Flex Space (warehouse and manufacturing space) occupied. The only segment lagging is the re-sale market for three buildings in the park, two of which are vacant and one which is partially leased.

At the current rate of tenancy, Southpointe I could be at full lease capacity in advance of the new construction planned for Southpointe II. The Washington Development Authority is planning to begin clearing the property, which was formerly Western Center, before the end of the year, marking the beginning of the Southpointe II project.