Crye-Leike scraps Huntsville, Ala. plans but will proceed with Midtown office – Memphis Business Journal

Memphis Business Journal – by Einat Paz-Frankel Staff Writer

 

Wednesday, November 12, 2008

 

Crye-Leike Inc. will not build a new office in Huntsville, Ala., due to market conditions.

 

Instead, the Memphis-based real estate firm is putting a 2.3-acre site ? which currently houses a restaurant ? on the block.

 

“Given the market, it doesn’t make sense to bulldoze this restaurant,” said Crye-Leike spokesman Mike Machak. “We might sell it. If we can’t, then, when the market turns we’ll build as planned.”

 

In contrast, the firm is moving forward with the rehabilitation of the former Anderton’s Restaurant on Madison. The nearly 12,500-square-foot space will serve the Midtown market, replacing its Union office.

 

“The project is still on,” Machak said. “We tie it to the expiration of the lease on Union. The objective is to finish the building a year from now when the lease is up.”

 

Over the past year, Crye-Leike has closed two Memphis offices, four Nashville offices and one office in Chattanooga.

 

Last year, Memphis Business Journal reported that Crye-Leike planned to open 13 new offices in several states. Since then, the firm has opened three new offices in northwest Arkansas; two in the Atlanta market; one in Jackson, Miss.; one in Little Rock, Ark.; one in Nashville; one in Madison, Ala.; and one in Fayetteville, Tenn.

 

The total number of active Crye-Leike offices is 120, down from 132 in 2007, Machak said. The company’s sales are off 30 percent from 2007, when it recorded $5.7 billion in volume. The number of its sales associates has decreased from 4,100 to 3,500.

 

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