City offers space inside riverfront building at huge discount
Wednesday, June 10, 2015
The Windsor Star/Dave Battagello
The City of Windsor is offering a bargain rate of $7 per square foot for available office space it already leases at more than triple the cost inside One Riverside Drive West — the former Canderel building.
Mayor Drew Dilkens indicated Tuesday there is little choice but to charge such a low rate.
“The decision to get involved with construction many years ago put the city in a bad situation in regards to the space we’ve needed to lease out,” he said. “A lot of that space sat vacant for years. It’s only because we brought (the rental rate) down (that) we have been able to keep it filled and generate some revenues to cover the costs that we have.
“The good news was we kept Chrysler (headquarters) here. I’m told at the time if this wasn’t built, they were going to leave. They stayed and that’s why it’s hard to be critical.”
As part of the agreement to construct the riverfront 14-floor office building, the city agreed to lease 14,000 sq ft. on both the third and fourth floors at an average rate of $24.28 per square foot. The city’s 20-year lease runs until 2022.
A current MLS listing has the city offering 3,795 square feet on the fourth floor at $7 per square foot.