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BUSINESS Downtown offices have trouble landing retail tenants for first floors Comment By Damian Mann Mail Tribune Follow @@reporterdm MailTribune.com By Damian Mann Mail Tribune Follow @@reporterdm Posted Feb. 22, 2016 at 5:47 PM Updated Feb 22, 2016 at 5:48 PM By Damian Mann Mail Tribune Follow @@reporterdm Posted Feb. 22, 2016 at 5:47 PM Updated Feb 22, 2016 at 5:48 PM » Social News New construction and major remodeling have brought new businesses to downtown Medford, but also created more vacant spaces. The four-story One West Main office building at Main and Fir streets had three large companies lined up before it opened, but has drawn a blank in trying to fill retail space on the first floor. The historic Sparta building at Main and Riverside Avenue tells a similar tale, with upstairs offices rented but the more visible downstairs space sitting empty. “We were hoping that we would have more tenants for the downstairs portion,” said John Hamlin with Coldwell Banker Commercial, which represents the One West Main building. “That’s disappointing.” The 117,000-square-foot building, which opened in 2014, has three corporations in the upper three floors, but the 30,000 square feet of retail space on the ground floor is empty. Another 10,000 square feet is also available on the second floor. Hamlin said he’s seeking tenants who would pay in the $2-per-square-foot range, which is higher than older downtown locations, some of which are closer to $1 per square foot. As a result, Hamlin said, he’s mostly had interest from national companies. He said he would like to get one upscale restaurant in a corner location, but much of the rest of the building could have financial institutions or more office space. “It doesn’t need to be just retail,” he said. In addition, there is still plenty of parking in the garage behind One West Main, he said. Hamlin represents other properties in the downtown, including one across Fir Street from One West Main that is for lease, though it is occupied by an antique store on a month-to-month lease. Carl Coffman, owner of the Sparta building at the corner of Main Street and Riverside Avenue, has struggled for three years to find a tenant for the ground floor of his historic building that he renovated. Upstairs, he’s rented out all the spaces, though. “It’s beg, borrow and steal to get tenants downstairs,” Coffman said. The 1911 building was extensively remodeled in a project that ended in 2012 at a cost of more than $700,000. It has received awards for historic preservation and in 2015 was honored by Restore Oregon, a statewide group that advocates for historic preservation. The awards, however, have not translated into first-floor occupants. The downstairs space is being offered at $1.75 a square foot, but Coffman said he’s willing to throw in six months free rent to attract a tenant. Coffman owns buildings throughout Oregon, including in the Roseburg area where he grew up. He said a lot of the towns and cities that were once heavily dependent on the timber industry continue to struggle in trying to adapt to changing economic conditions. Even in Portland, where Coffman also owns buildings, it can be a challenge to get someone to lease a downstairs location. “Issues of ground-floor space have haunted me for years in Portland,” he said. Mark DeBoer, Lithia’s vice president of real estate, said there is no “silver bullet” to attract tenants into downtown locations, something his company has been able to do. He said Lithia was picky about the kinds of tenants it wanted in its new corporate office complex on Riverside Avenue. “It was about finding the right tenant,” he said. “We were very selective.” Lithia approached Starbucks about opening a store in the downstairs, but DeBoer said, “The corporate folks were on the fence.” They basically thought a Starbucks wouldn’t do well in the downtown. As a result, Lithia got a license to open its own Starbucks, and the new location has defied that prediction and done well, DeBoer said. Other ground-floor retail spaces in the building have also been filled. Lithia still has one open spot in the downstairs next to Starbucks but hasn’t been diligently looking for a tenant until recently, DeBoer said. “We just don’t want a fly-by-night tenant to get someone into a spot,” he said. Reach reporter Damian Mann at 541-776-4476 or [email protected] . Follow him on Twitter @reporterdm . By Damian Mann Mail Tribune Follow @@reporterdm MailTribune.com By Damian Mann Mail Tribune Follow @@reporterdm Posted Feb. 22, 2016 at 5:47 PM Updated Feb 22, 2016 at 5:48 PM » Comment or view comments Reader Reaction » STAY INFORMED Email NewsLetter Sign Up Today Sign up for our newsletter and have the top headlines from your community delivered right to your inbox. Southern Oregon Directory Featured Businesses Loading... 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