Posted: 07/18/2011 12:17:54 AM MDT
"Retail Downtown has been weak over the last few years, and we thought it was good time to (give incentives to) entrepreneurs to come Downtown and take advantage of the ongoing revitalization," said Adam Frank, River Oaks president.
"We are getting a lot of calls, and we have signed a letter of intent for 109 Mesa" for the freerent deal, which River Oaks only recently began offering, he said.
A tenant must sign a lease for five years to get one year of free rent, Frank said.
Michael Breitinger, executive director of the Central Business Association, said River Oaks' free-rent incentive is a good idea.
"You want people in the buildings to generate revenue for you, and for taxes," Breitinger said. "It's a tough market, and the clearest indicator is vacant spaces on South El Paso Street," which for more than two decades had few vacancies.
The recession in the United States and Mexico and the long waiting times on the Paso del Norte Bridge are among factors that have hurt the Downtown retail market, Breitinger said.
Moving the Sun Metro bus transfer area away from San Jacinto Plaza also brought vacancies to that area, he added.
Bob Ayoub, president of Mimco Inc., another large El Paso retail center developer that also owns Downtown retail spaces, said Mimco has a few Downtown vacancies but not a lot of interest in them.
"The Downtown leasing market is soft," Ayoub said.
But Mimco is not offering free rent, he said.
"The deals we have worked on, we've been able to get done with some pretty small concessions - lowering the starting rent, or providing some improvements for the tenants," Ayoub said.
The Downtown Management District, of which Ayoub is president, will soon get data from a Downtown survey, to include demographics of Downtown employees, and an inventory of vacant retail and office spaces, Ayoub said.
That information will help better market Downtown, as is the Mills Building renovation, he said.
Frank at River Oaks said his company has five vacant Downtown buildings with the free year's rent offer.
One is the Banner Building at 215 N. Mesa, across the street from San Jacinto Plaza. River Oaks is looking at remodeling that building and wants to put stores and restaurants on the ground floor, Frank said.
"We believe there is momentum in redeveloping Downtown today," Frank said, "and we would like to contribute to that effort by encouraging new businesses to set up Downtown."
Vic Kolenc may be reached at This e-mail address is being protected from spambots. You need JavaScript enabled to view it ; 546-6421.
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