Chattanooga: Owners of offices target frugal professionals

Less is more, at least when it comes to office space, as three Chattanooga-area businessmen hope to prove.

Greg Vital, Franklin Farrow and Mark Mourier have bought the former Carpenters Building and plan to lease small amounts of downtown office space to professionals.

Tenants would share utilities, Internet connection and other services in a novel model for the central city.

“Professionals will want this, especially people who are downsizing,” Mr. Vital said.

The newly named Carpenters Commons Executive Suites building, at 518 Georgia Ave., houses Keller Williams Realty and DeMoss Accounting and DeMoss Capital Management LLC.

About 3,000 square feet is available for lease, Mr. Vital said. The new owners bought the building from Paul Mallchok for $1.5 million through a loan arranged by Cornerstone Community Bank, Mr. Vital said.

The partners are targeting professionals who own small businesses such as a law practice or import-export business, Mr. Mourier said. The arrangement is ideal for people who have been working out of their homes but long for a professional setting. The rent includes services such as utilities, wireless Internet connection, cable, a common reception area, conference room and kitchen, he said.

Also, the building has 42 surface parking spots for tenants and guests, Mr. Mourier said, which is rare for a downtown office. Tenants can use storage units on the property, which are 200 to 500 square feet, at no additional charge.

The building is accessible to the Hamilton County Courthouse, which is a block away, as well as the University of Tennessee at Chattanooga and the North Shore, Mr. Vital said.

A common-use executive office concept is normally found in a suburban setting, not downtown, Mr. Vital said.

Mr. Mourier, with David Barrueta Associates, which also is a new tenant in the building, serves as the leasing agent for the property. The rent ranges from about $300 to about $700 per month, he said.

Mr. Mourier predicted more downtown office building owners will move to this model because of professionals who want to downsize their office use because of the economy.

Mr. Farrow and Mr. Vital are owners of Independent Healthcare Properties LLC, which owns and operates Morning Pointe assisted living communities and several downtown buildings, including the Dome Building, and the Old Post Office and Custom House.