No. 0908 expanding the boundaries of the WWCDA, expanding the allocation area for purposes of TIF, and amending the development plan

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5. Nta r k e -t-MUB 3- f Or r_ Comme j, l e� o The overall office market in South Bend appears to be fairly strong. In downtown, good quality rehabilitated office space rents for about $11.00 to $13.00 per square foot, including most maintenance and operating expenses. Top quality new space rents for $13.50 to $15.50 per square foot. o The Near Westside's Washington Street area has benefitted from positive trends in the adjacent central business district. Strong demand exists for office space in renovated former mansions in the historic district. o The trend of converting large old houses into professional office space may have peaked, however, largely because of changes in federal tax laws that have made the conversions less cost effective. o Demand for office space in the study area but outside the historic district is very limited at this time. 6. 1• tiri InSlll: 3i� � d, o The overall market for light industrial space appear zo be active in the South Bend area with new and vacant existing good quality space being absorbed as it becomes available. o Rental rates range from $1.50 to $2.00 per square foot for space in older, existing buildings to $5.00 to $6.00 per square foot in new industrial parks. In both cases, tenants pay all operating and maintenance expenses. o The City of South Bend has a large supply of vacant and underutilized space in deteriorating former manufacturing buildings near downtown, especially the former Studebaker facility. As in most cities across the country, demand for vertical usually antiquated industrial space is very limited. o The western section of the Near Westside study area near Washington and Cherry streets is already the focus of planned privately - sponsored light industrial development. The project includes a 750,000 foot building and vacant land. Preliminary plans include rehabilitation of the existing structure and new building construction. A APPLIED REAL ESTATE ANALYSIS, INC.