Iconic Office Property Could Be Redeveloped in Dire Office Market
- Aug 07, 2013
One of the most iconic buildings in Memphis may be headed for redevelopment. According to Memphis Business Journal, rumors have been circulating regarding 100 North Main, also known as the Union Planters building, as multiple long-term tenants are reportedly in the market for new locations.
The property was named after its previous occupants, Union Planters National Bank. The UP sign atop the building was taken down in 2005 after the bank was acquired by Regions Bank. The 1965-built office asset is the tallest building in the Bluff City with its 430-foot height and 38 levels. Designed by architect Robert Lee Hall, the building was acquired by Zimmerman Investments principal Myron Zimmerman in 1978 from Sidney Kohl for $10 million. Zimmerman proceeded to transfer the property’s ownership via quitclaim to Zimmerman Revocable Trust. The property features 436,280 square feet of office space, but is plagued by high vacancy rates – similarly to the entire Memphis CBD and Greater Memphis Area office market.
According to Colliers International, 2013’s first quarter brought higher vacancy rates to Memphis than the previous quarter. Total office vacancy rates in the city were up from 14.8 percent to 15.1 percent which amounts to an increase in vacancies by 102,980 square feet. The national average office space vacancy rate for 2013’s first quarter was of 13.89 percent
The Memphis CBD has a 20.3 percent vacancy rate for Class A office space, 11.4 percent vacancy rate for Class B space and 19.6 percent for Class C office space resulting in a 16.9 percent average vacancy rate.
100 North Main could potentially be redeveloped into a multi-use hotel, retail or multifamily property, and office property. Nothing has been confirmed as of yet. The property, which also features a 400-car parking garage, was reportedly appraised at $3.7 million in 2013. It was on the market for $20 million in 2012.
Image courtesy of Samuel Grant via Wikimedia Commons
Chart courtesy of Colliers International