Oct. 8, 2024 | Why Fort Wayne's office vacancy rate is rising
Hey Locals,
This week, we're talking about rising office vacancy rates in Fort Wayne, and what's causing them. We also cover regional craft brewery closings and a petition to fund upgrades across all Allen County Public Library branches.
Plus, we respond to a reader question about why proposed changes to Moody Park aren't happening yet – and how you might get upgrades at a park near you.
Don't forget: This month, all paid subscribers to The Local get a buy one, get one free deal on all fall coffee beverages at Swizzle Market, or half-off one non-alcoholic cocktail. Learn how to claim your free offer here.
Now, let's get started!
NOTE: Links to Journal Gazette articles are marked(*) and may be behind a paywall.
Office vacancy rates are rising in Fort Wayne.
Here are a few trends to watch.
What's happening?
Office vacancy rates rose to a seven-year high of 13.66% this year in Fort Wayne, according to The Zacher Co.'s Office Market Report. Steven Zacher, president and managing broker of the firm, tells The JG,* “The impact of COVID on office space didn’t happen right away.” Since the pandemic, corporate consolidations and office downsizing have continued as leases expired.
Here are a few quick things to note:
- Remote work is impacting office space. While vacancy rates typically rise during economic downturns, what's driving this year's increase appears to be technology and a continuation of pandemic-era remote work trends. Companies are realizing it might be more practical and cost-effective for people to work remotely. Education, health care and public service agencies remain the most active office users in Fort Wayne's market.
- Fort Wayne still has less vacant office space than national and regional averages. National office vacancy rates this year hit 20.1% in the second quarter of 2024 — the highest rate since Moody's began tracking in 1979. Zacher attributes Fort Wayne's lower rate to the fact that our city "never really overbuilt the way other places did.” Instead, new mixed-use developments have focused on residential and retail versus office space.
- Companies are still relocating offices to Downtown to attract and retain talent. This year, K&K Insurance leased space at Electric Works, and Centier Bank announced plans to expand into a 13,500-sq-ft space at 127 W. Berry St. In August, STAR Financial also hosted a ribbon-cutting for its new $45 million Downtown facility at 215 W. Main St., including a seven-story North Tower and a three-story South Tower. "Although overall office vacancy has crept up, Zacher’s report projects a slower pace of shifting next year," The JG* reports. "The trend of companies moving from the outskirts to Downtown is expected to continue."
A deeper dive...
While Fort Wayne's rising office vacancy rate might be perceived as a "challenge," it can also be an opportunity to rethink how people utilize spaces and why.
So... might we see office space being converted into apartments? And how is Electric Works doing? We ask Zacher in our premium newsletter.
- Chapman's Brewing and Junk Ditch Brewing are closing their satellite locations in regional cities. Chapman's is closing its Columbia City location this Friday, and Junk Ditch abruptly closed its Huntington Tap last week. Both establishments say they're refocusing efforts on their Fort Wayne ventures. These closures continue a troubling trend in the local craft beverage scene, where several businesses have recently closed their doors, including Trubble Brewing, Summit City Brewerks, Three Rivers Distilling Co., GnomeTown Brewing Company and Country Heritage (Downtown).
- The Allen County Public Library is seeking support to fund its Facilities Master Plan. The plan includes "major improvements at all locations," including: more family and youth spaces, additional STEM spaces, improved handicap accessibility, expanded access in high-growth and high-need areas and increased support for small businesses and economic development. An online petition for the project says it will be paid for by a combination of library reserves (up to $26,000,000) and bonds (in a principal amount not to exceed $37,000,000) and that the repayment of the bonds will be from property taxes (for those not yet above the tax cap). For homes with an assessed value of $150,000, this would be an extra $10.94 in taxes per year.
What else? NCAA tournaments coming to town, neighborhood branding grants and more. We cover it all in our premium newsletter.
Reader question: When will Moody Park be redeveloped?
We answer a reader question about long-awaited changes coming to Moody Park – and what other city parks are getting updates.
What’s happening?
A reader recently reached out to us with a question about why planned improvements to Moody Park aren’t happening, despite citizen effort and a $50,000 investment from the West Central neighborhood.
“For years and years, West Central has been trying to get upgrades done to Moody Park. We have had planning meetings out the wazoo. Design, all that. Bathrooms, water fountain, pickleball courts, a soccer field to be used by all, but specifically for the many K-8 schools in the Downtown area, where they all have to go out to Kreager Park for a JV 5th grade middle school game, and they could just play in Moody Park…. (A few years ago), we were pushing HARD and took the entire proceeds of the West Central (Home & Garden) Tour and added more to it to put aside $50K, as that is what the city said it would take.” And yet, they said: nothing has materialized. “It is disheartening to have nothing after … significant citizen effort, where we are paying for a significant amount of it.”
We reached out to Parks Director Steve McDaniel to learn more about the status of the Moody Park project, what’s needed to complete it and how the process works for neighborhoods to get improvements at parks they care about.
Learn more in our full Q&A.
- Shop: vintage home goods and fashion at Mercantile on Main's Pop Up Sale this weekend, Oct. 11-13. "Sales start at 20% off on Friday with more deals happening Saturday and Sunday," an Instagram post says.
- Experience: an art exhibit by allwalls.art at The Garden on Oct 10, 6-8 p.m., featuring the work of three female artists, Hilarie Couture, Lesa Van Meter and Danyelle M. Yoder. Allwalls.art is a local startup that allows you to buy art on the spot at venues using QR codes. Its exhibit, "Mask of God," will be on display until Nov. 17.
- Show up: at City Council tonight to learn or speak about Fort Wayne Citilink's proposed special tax levy and what's next for the Urban Trail. Council meets at 5:30 p.m. in the (lower) Garden Level of Citizens Square, Room 35.
What else? We share more things to do in our premium newsletter.
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Have a great week, Locals!
-Your Editor, Kara Hackett