  Detroitman Member Username: Detroitman Post Number: 912 Registered: 06-2004 Posted From: 216.78.40.155 |
http://www.crainsdetroit.com/c gi-bin/article.pl?articleId=28 831 Visteon may sublet offices in Detroit Supplier scales back plan By Jennette Smith • February 20, 2006 When Visteon Corp. signed a lease last year to become a lead tenant in a new office project in downtown Detroit, the move puzzled some real estate observers. The deal to move into the One Kennedy Square building made sense for the troubled auto supplier at the time, Visteon said, because it offered a cost-efficient way to consolidate information-technology contract workers. The workers, primarily IBM Corp. employees, were working in Dearborn in buildings with expiring leases. Now that Visteon is a smaller company, the company’s downtown real estate strategy has scaled down accordingly: Visteon and the landlord and developer of the One Kennedy Square building, Redico L.L.C., said Friday that the company is not going to need all — or perhaps any — of the 108,000 square feet originally leased for the IT workers. “They will be looking to sublease some space,” said Dale Watchowski, president and CEO of Southfield-based Redico. “It could be some; it could be all.” The company is set to begin paying rent April 1. Its real estate adviser, CB Richard Ellis, is working on finding sublease tenants, and recently was named the listing broker for the building, Watchowski said. Jim Fisher, director, corporate communications for Visteon, said because Visteon is a leaner company than when it initially signed the lease, it intends to sublease at least some of the One Kennedy space. The company recently transferred 23 plants, warehouses and tech centers to a Ford Motor Co.-managed business entity. Fisher said Van Buren Township-based Visteon hadn’t determined exactly how much space would be subleased downtown. “We’re going to market the space and see what kind of response there is,” he said. Mark Collins, first vice president of CB Richard Ellis in Southfield, said the incentive packages available at the building along with its design and amenities are draws to potential tenants. “We have some interest,” he said. “It’s a brand-new class A building downtown. It’s in the heart of the city.” One Kennedy Square is in a Renaissance Zone. Property owners and businesses located within the zones are eligible for multiple tax waivers, such as the Michigan single-business tax, personal-income tax, Detroit property taxes and city income tax. Watchowski said he’s pushing for the building to have a nice, white-tablecloth restaurant on the first floor. The broker on the retail space at One Kennedy Square is Detroit-based Bieri Co. The $54 million building includes 250,000 square feet on 10 floors. The other major signed tenant so far is accounting firm Ernst & Young L.L.P., set to move from the One Detroit Center building and the global automotive center in Troy. | ||
Lmichigan Member Username: Lmichigan Post Number: 3200 Registered: 10-2003 Posted From: 67.172.95.197 |
Hopefully, this office space will be filled like many hope. That's about a good of a spin as you can expect from this news. | ||
Motorcitymayor2026 Member Username: Motorcitymayor2026 Post Number: 522 Registered: 10-2005 Posted From: 71.10.63.140 |
I know that Visteon had been thinking about getting rid of the space since right after they signed the original agreement. Hopefully, we will get a few Visteon folks in there, along with a couple more companies... then, maybe they will need to expand and build again in detroit...., That Lmich is the best spin job i can think of  | ||
Livernoisyard Member Username: Livernoisyard Post Number: 113 Registered: 10-2004 Posted From: 69.242.223.42 |
I never understood the logic in that anticipated move in the first place. Today, such a HQ could be located just about anywhere there was a communications link. Even on a lunar colony. Dumb, dumb, dumb... | ||
Irish_mafia Member Username: Irish_mafia Post Number: 360 Registered: 10-2003 Posted From: 69.221.79.80 |
How much space does Earnst and Young occupy...or do they just get the sign? | ||
Lmichigan Member Username: Lmichigan Post Number: 3201 Registered: 10-2003 Posted From: 67.172.95.197 |
It usually works that the tenant with the most space in the building gets the sign. Or, it could be whomever buys the signage rights. I guess it works in different ways depending on who the owner is. | ||
Mackinaw Member Username: Mackinaw Post Number: 1209 Registered: 02-2005 Posted From: 141.213.173.94 |
well there will certainly be a variety of tenants. Hopefully offices won't sit empty, leaving downtown with not nearly as much fresh blood as we had hoped for. | ||
Bobj Member Username: Bobj Post Number: 515 Registered: 11-2003 Posted From: 68.40.89.238 |
Anything new on this?? | ||
Spidergirl Member Username: Spidergirl Post Number: 160 Registered: 12-2004 Posted From: 63.77.247.130 |
Ernst & Young has signed on for the top 2 floors. | ||
Nellonfury Member Username: Nellonfury Post Number: 111 Registered: 03-2005 Posted From: 68.43.156.135 |
Any new progress about the One Kennedy Square and when it's going to be complete? | ||
Treelock Member Username: Treelock Post Number: 90 Registered: 03-2005 Posted From: 68.77.166.98 |
As excited as I am any time there's development activity downtown, it isn't as if there isn't already existing office space there. And with the office vacancy rate being what it is all over the metro region, I sort of cringe each time a new building goes up. | ||
Lmichigan Member Username: Lmichigan Post Number: 3276 Registered: 10-2003 Posted From: 67.172.95.197 |
This is Class A space, which will rarely ever go unused, and when it does, it is almost certain to be filled. | ||
Rayraydetroit Member Username: Rayraydetroit Post Number: 6 Registered: 02-2006 Posted From: 67.72.98.45 |
I doubly cringe on these kinda deals too; especially with the abundance of tax breaks. They can beat the pants off the rest of downtown buildings that are half empty. | ||
Sid Member Username: Sid Post Number: 427 Registered: 12-2003 Posted From: 155.139.50.15 |
good try LMich. you have no idea how vacant the cpwr building sits. | ||
Bob Member Username: Bob Post Number: 798 Registered: 11-2003 Posted From: 152.163.100.8 |
But aren't the top couple floors of the Compuware Building not even done. They are for future expansion of the company. |
