Building Our City

Jun 19, 2009 — The State

Jeff Wilkinson

Jun. 19, 2009 (McClatchy-Tribune Regional News delivered by Newstex) -- HealthPort, an Atlanta-based health care company, will transfer 140 employees from its Northeast Richland service center to Main Street in downtown Columbia, the company said Thursday.

The announcement is a shot in the arm for Main Street, which faces the loss of 900 workers later this year when SCANA Corp. (NYSE:SCG) moves from downtown to a corporate campus in Cayce.

HealthPort said the rental cost of space in the 1401 Building at the corner of Washington and Main streets was right. The company added in a statement that the downtown location provided "a culturally desirable workplace" -- alluding to the area's mix of restaurants, shops and entertainment.

"We never seriously considered the possibility of moving downtown," HealthPort vice president Larry Arnold said in a statement. "However, we were able to identify several options that met our goals."

Affordable rent and the proximity to downtown's restaurants and other services were cited as reasons for the move.

Main Street, has been on an economic roller coaster of late.

Three new office buildings have sprung up in the past three years, including the 18-story Main and Gervais building slated to open later this year. A $4.5 million streetscaping and utilities project between Hampton and Blanding streets was completed in the spring. And the Nickelodeon art house cinema announced it will move to Main Street.

But the landmark Lourie's Building at the corner of Main and Taylor streets did not draw a single bid when put up for auction last month. And the city recently shut down The Factory -- a gym in the historic Tapp's Building -- because the owner was a year behind in rental payments.

The departure of SCANA from the Palmetto Center will be another serious setback. But Columbia Mayor Bob Coble said the migration of firms downtown from the suburbs could fill the void.

"This is exactly the kind of job announcement we need," he said. "It is a company that is already here in the area, but sees the value of being downtown."

HealthPort will move from its offices on Farrow Road at I-77. No timeline was given.

Real estate broker Ronnie Cannon of CresaPartners, said the firm will pay "in the high teens" per square foot for two renovated floors in the building. The price includes nearby, but not adjacent, parking.

The price is well below Class A office space rates in new buildings downtown -- rates that are approaching $30 per square foot.

Cannon said the company's executive "recognized the urban environment is the way to go. You can walk to lunch and never have to get in your car."

Cannon added the city still needs to work on the downtown's challenges -- particularly parking -- to offset the SCANA move.

The city earlier this month announced a 400-space parking garage at Washington and Sumter streets -- two blocks away from the 1401 Building -- to ease the 1,800-spot shortage in the city's downtown business district.

"It's a great win for the city," he said. "But you still have to solve the problems or you are going to see occupancy drop from 86 percent to 77 overnight."

Matt Kennell, president and CEO of the City Center Partnership, which guides investment in the central business district, called the announcement "wonderful news."

"As (the leasing costs of) these older buildings get down in the teens they will become very competitive," he said. "And there are going to be more opportunities to backfill as other people move. This is just a hint of it."

Reach Wilkinson at (803) 771-8495.

Newstex ID: 35868052