Vt. (WCAX) – The effects of the pandemic can still be seen in empty offices across Chittenden County, especially in downtown Burlington, where the vacancy rate remains above its pre-pandemic level
A firm that tracks real estate says there was a 6.9% vacancy rate in Burlington’s central business district in December 2019. The remote work revolution that began a few months later drove vacancies higher, with the rate still sitting at 11.3% as of June.
Main Street Landing, a multi-use building on the Burlington waterfront, is home to several businesses and offices, but a chunk of the building is currently sitting vacant.
“It is a signature space. It is a place that someone would call headquarters,” said Main Street Landing’s Owiso Makuku.
The building used to host Seventh Generation and its 100 employees. Now, despite all the upgrades and amenities in the space, it remains empty. “I mean, it really is a mini palace,” Makuku said.
In December 2019, office space in the city’s central business district had a 6.9% vacancy rate. The rest of Burlington combined with Chittenden County sat at 8.9%. As of June, the central business district was at 11.3%, while Chittenden County was 11.9%.
“The two markets are starting to become more aligned with each other,” said Brad Minor, who helped write the report on the market conditions. He says that’s a change from the past when office space in the downtown was highly sought after. “We have a more significant increase in vacancy in downtown Burlington than what we’re seeing in the suburbs… Historically, you know, suburban vacancy has been higher than downtown.”
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While the overall rise in office vacancies can be attributed to the rise of remote work and companies downsizing their footprints, the city acknowledges Burlington has also been impacted by concerns about public safety downtown that have resulted in less foot traffic for shops and restaurants.
“What concerns me about the vacant office space the most is that those office workers were built-in consumers for us, as well as those who visited their office,” said Kara Alnasrawi with the city’s Community & Economic Development Office. She says the addition of hundreds of new residential units in the city will help replace the missing office workers. “And that sort of built-in consumer base in our downtown we’re hoping can help support us economically.”
Minor says the challenges for commercial real estate are not just a Burlington problem. “I mean, I think the overall office market is soft, you know, and that’s not something that’s unique to Burlington. It’s something that is happening everywhere,” Minor said.
Makuku remains hopeful that companies will eventually see the value of downtown spaces like Main Street Landing. “We know that it will take time, but that this space is going to be more attractive for the state of Vermont, for a company that’s going to move here with 120 new employees, and hopefully make everybody’s lives better,” she said.
Officials say turning vacant office spaces into housing has been done in some locations in Burlington, including on Pine Street, but that it can often be cost-prohibitive.
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