Fort Wayne.

• Author: Margolis, Jay
• Position: Real Estate Around the State

FORT WAYNE

Fort Wayne witnessed some dropped jaws in mid-July when Ian Rolland, president and CEO of Fort Wayne-headquartered Lincoln National Corp., made his stunning announcement.

That $60-million, 450,000-square foot office building, which much of the city governmental and business community thought was a fait accompli, wasn't going to be built for at least five years, because Lincoln wasn't certain the city was laying the groundwork for a sound business climate heading into the next century, Rolland explained.

Lincoln's building was expected to be the heart of the city's superblock development on the south end of the downtown business district, a ringing endorsement that was expected to lure other projects. It would also have consolidated the space leased by Lincoln, leaving gaps in other buildings.

"There isn't a lot of (class A) space available," says Mike Dahm, a partner in Harding, Dahm & Co. "It's good and bad. The bad is when you have a large tenant come in, you don't have anything to show them."

Al Zacher, another commercial broker, says the Lincoln decision will enable developers to begin projects they were hesitant to pursue. "Downtown has 92 percent occupancy, which is a favorable market," Zacher points out. "It indicates market conditions are not out of balance. The office marketplace may benefit, at least in the near term. People will not build with large vacancies."

The city is still adjusting to last year's opening of the Standard Federal Plaza , says Barry Sturges, a partner in Sturges, Griffin and Trent Co. Standard Federal is 80 percent leased. When you throw a...