
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: TUESDAY, April 27, 1993                   TAG: 9304270071
SECTION: BUSINESS                    PAGE: B-5   EDITION: METRO 
SOURCE: GEORGE KEGLEY STAFF WRITER
DATELINE:                                 LENGTH: Short

HIGH OFFICE VACANCY RATE CONTINUES TO PLAGUE VALLEY

The Roanoke Valley commercial real estate market is holding on after passing through its worst period in recent memory, said Bill Poe, whose Waldvogel, Poe & Cronk on Monday released its annual survey of the region's office space.

The company reported a 13 percent office vacancy rate for both downtown Roanoke and the suburbs. Information for the report was collected before Feb. 15.

The Colonial Arms Building, left empty when Norfolk Southern Corp. employees moved to new regional headquarters, and uncertainties about First Union Corp.'s office needs in Roanoke are the main factors governing downtown vacancy, he said. However, J.C. Bradford & Co. is about to occupy the first floor of the Colonial Arms, at Jefferson Street and Campbell Avenue.

The survey is the second such report to cite the high office vacancy rate. Edwin Hall of Hall Associates Inc. reported a 23 percent vacancy in downtown office space in February.

"Overall, everybody would like to see higher occupancy rates," Poe said. "But this shows well for Roanoke" after a real estate slump. "Strong buildings are still strong."

The only new office construction in the valley is Fralin & Waldron's 50,000-square-foot office park, "so we should gradually fill up the space," he said.

South Roanoke County has some overbuilding of offices and the most competitive market, Poe said. The south county has more than double the office space in the north county. But all three areas - downtown, north and south county - have a 13 percent vacancy rate, the survey said.

by CNB