Published: Saturday, Jul. 11, 2009

Updated: Saturday, Jul. 11, 2009

Manatee Association of Realtors to test virtual office leasing

LAKEWOOD RANCH — The Manatee Association of Realtors is dipping into the business of virtual office rentals.

The association is converting an additional 2,500 square feet in its Lakewood Ranch office into a virtual business center that will offer flexible leasing options.

Barry Grooms, president of the Manatee Association of Realtors, said the association purchased the additional space when it opened in Lakewood Ranch with the intention of renting to a permanent tenant to generate revenue.

But the economy changed that plan.

“There’s an overwhelming demand because of the economic times of businesses downsizing,” Grooms said. “We looked at the idea of doing a business center with virtual offices for businesses looking to downsize their square footage and lease spaces.”

The conversion cost will range from $75,000-$100,000, and when completed will include a shared reception area, meeting rooms and amenities such as a copier and fax machine.

Lease rates and terms are not yet available, but Grooms projects the business center will be available for lease by the fourth quarter of this year.

The Manatee Association of Realtors venture into virtual office space comes after ComCenters closed its downtown Bradenton complex, which had about 40 office spaces for rent.

Bernie Croghan, president of ComCenters, closed the complex in June because it only saw 50-60 percent occupancy.

The ComCenters on State Road 70 and in Lakewood Ranch, however, remain open as they have been doing better, Croghan reported last month.

Manatee County’s overall office space market is struggling due to the economy.

Grubb & Ellis Commercial Florida reported Manatee County’s office space vacancy rate at 13.2 percent for the first quarter, a slight increase from the 12.2 percent in the fourth quarter of last year.

Grooms, however, said the Manatee Association of Realtors is confident its business center will thrive.

“We’ve received an overwhelming response as far as demand is concerned,” Grooms said. “We’re going to be extremely competitive with our rates for our members.”