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CONSULTATION (continued) of 350,000 square feet of office space in the private sector, which was 90,000 more than in 1996. The average asking rate for office space, in all classes of space, was at $1.20 per square foot per month, full service. The Class A(City Best) average rent per month was $1.42 per square foot with Class B(Downtown Core) at $1.15 per square foot. The Coldwell Banker survey of 471,416 square feet of Class A space in the Salem CBD had a vacancy of 2.35 percent, and Class B space at 11.98 percent as of year-end 1997. Regarding new development in the CBD, the redevelopment of a building lrnown as the First Store Building, located at the northeast corner of Commercial and Ferry Street, contains approximately 40,000 square feet of Class A office space. This project is approximately 25 percent pre-leased during construction with rental rates at $1.50 per square foot per month with reported effective rates at about $1.45 per square foot which includes a parking ratio of three spaces p~r 1,000 square feet included in the rent. There is also a new Class A structure under construction south of the CBD on Commercial Street. The three-story structure under construction containing 27,000 square feet is approximately 50 percent pre-leased. Marketing rates are at $1.50 per square foot per month with four spaces per 1,000 included in the rent. In general, the demand for office space in the CBD is excellent, as exhibited by low vacancy rates and reported increasing rental rates. Market Rental Analysis - Office/Parking The market rental analysis reflects a survey of six CBD and extended CBD office buildings considered to be in the Class A/B range. The tabulation of the lease comparables are presented on the following Office Lea.se Tabulation Chart and Location Map. The office leases are applied to the Marion County proposed space of 114,557 square feet, with the County also having control of 277 parking spaces in the project, which is 2.42 spaces per 1,000 square feet which is generally supported by the market. Additional parking in the central core area is provided by the Parking District and public garages. The rental rates are adjusted to reflect the Marion County occupancy, with the rent comparables being adjusted downward for real estate taxes. In addition, those comparables which include parldng within the rent are adjusted downward to reflect the subject's 2.42 parking ratio. Therefore, the market rent conclusion will reflect an office rent per square foot and a monthly parking space rent. C98052 pALMER, GROTH & PIETKA, INC. g