Downtown on the move

Rochester Business Journal Staff//February 24, 2017//

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The seeds were planted several years ago when a relatively small group of developers, working independently and at times in partnerships, decided to invest in the future of downtown Rochester.

Today, the results of those investments are becoming increasingly evident. Almost everywhere you turn in the center city, revitalization activity is underway—and a growing number of projects are at or near the finish line.

Last fall, Tower280 at Midtown—the redevelopment of the former Midtown Tower by Buckingham Properties LLC and Morgan Management LLC—celebrated its opening. And as the special section in this week’s issue describes, Gallina Development Corp.’s re-creation of the Chase Tower as the Metropolitan is heading toward completion.

Updates on those two projects and a number of others were provided last week at the sold-out Rochester Business Journal Power Breakfast Series event on downtown development.

Without a doubt, interest in downtown living is surging. According to Rochester Downtown Development Corp.’s October 2016 market survey, the market-rate rental vacancy rate has fallen to a very low 2.1 percent even as more space comes on line. Developers report a high level of interest in properties such as Morgan Management’s Court Street Apartments and DHD Ventures LLC’s 88 Elm St., a mixed-use development that should be ready for occupancy this summer.

But as the developers who spoke at last week’s event noted, challenges remain. Despite signs of considerable interest in owner-occupied housing, very little is available. With condo units planned on floors 22 to 26, the Metropolitan may lead the way in showing the meeting point for price and demand.

In addition, Class A commercial space remains soft. The emergence of the Downtown Innovation Zone should help, but more businesses that currently are located outside of the city need to take a closer look at downtown. Concerns such as the cost of parking also need to be addressed.

So, plenty remains to be done. But downtown clearly has momentum on its side.