For Immediate Release:                                                                                                 
Contact:  Bob Cole                                                                                          
Telephone: (859) 255-8855
E-Mail: bcole@colemangroup.net

Subject:  2004 Coleman Group Market Study

Coleman Group Market Studies Highlighted By A Significant Absorption
 of Commercial Real Estate Space in Lexington’s Suburban Office Market

The 2004 Coleman Group Market Study, an annual examination of commercial real estate in Lexington, indicates significant decreases in the vacancy rates of suburban and central business district office properties, but an increase of industrial warehouse vacancies.

The Suburban Market Study was the most encouraging with the overall vacancy rate standing at just 12.4 % at the end of the 2004 calendar year, a decrease of 3.84 % from the 16.24 % shown in the last quarter of 2003. The 12.4 % figure includes a regular vacancy rate of 10.48 % and a sublease availability of 1.92 % among the 2,737,661 square feet in 83 suburban office buildings surveyed.

Bob Cole, President of Coleman Group, says, “The current strong business climate is the explanation for the decrease in suburban space availability, as well as the sudden increase of office condo development within the suburban market, specifically at Wellington, Beaumont, and Hamburg.  And, although there are some condo office buildings represented within the study, it’s not a true indicator of the condo office market, largely due to the fact that these units are being sold as quickly as they are being developed.”

In addition to the Suburban Market Study, the Central Business District Market Study indicated a healthy 1.83 % decrease in overall vacancy among the 2,396,007 square feet in 33 downtown office buildings surveyed, further supporting indications of business expansion within our community. 

The Industrial Warehouse/Flex Market Study, however, was noticeably different from the office market studies.  Of the total 6,276,977 square feet of space surveyed, there are 1,638,932 square feet of availability, which represents an increase of 2.74 % above fourth quarter of 2003. Although much of this increase can be attributed to one single asset, the fact that there was no significant absorption indicates that this sector of the market is recovering slowly.

Summing up the surveys, Mr. Cole said, “Overall, these studies give even more reason to be optimistic about 2005, which we at Coleman Group were already.”

Those who would like a copy of the studies, please e-mail Gretchen Nalley, Director of Marketing, at gnalley@colemangroup.net.