After four years of flat performance, activity in the downtown Toledo office market improved significantly in the last six months, according to a report by a local commercial real estate firm.

In its midyear report released this week, the Reichle Klein Group of Toledo said that the vacancy rate in the central business district, which includes downtown Toledo, had dropped to 20.3 percent from 21.3 percent six months ago.

In the past two years the vacancy rate had risen at midyear, generally because tenants usually make decisions to vacate space after the first of the year or after tax-filing season.

But Jason Westendorf, an office market specialist at Reichle Klein, said that, so far in 2015, the overall office market is improved even though the vacancy rate for the greater Toledo area remained flat. It stood at 15.4 percent at midyear, up from 15.2 percent at year’s end.

Still, the vacancy rate for the overall market was down from 16.9 percent at the end of 2011.

“Overall activity has been steady, encouraging,” Mr. Westendorf said. “Businesses small, large, growing or downsizing have been out there looking to find something more efficient. They’re anxious to see what’s out there in the market — although I think many are finding the ideal property doesn’t exist, but that’s really more a factor of inventory than anything else.

“It’s just been increasingly difficult for them to find what they’re looking for to the point that many of them are thinking about new construction.”

Megan Malczewski, an office market specialist with the Toledo office of Signature Associates, agreed that the office market has been solid. 

There are some areas that have seen more activity than others, she said. But, generally, there are good signs in the marketplace, such as business expansions, she said.

Reichle Klein’s report shows that much of the activity in the suburban office market was along the I-475/​U.S. 23 corridor, from Perrysburg to Sylvania Township and West Toledo.

Overall, the report described the Toledo area office market as “solid, though not spectacular” in 2015’s first half.

One encouraging sign noted in the report is that the asking rental rate — a measure of market strength and stability — rose 27 cents to $14.44 per square foot in the first half of the year.

The number of firms looking for new space is up from a year ago, and the amount of new space is expected to increase even though two of three new projects announced last year had yet to break ground, the report said.

Reichle Klein said that interest in the central business district “has increased noticeably,” though the activity was not reflected in the numbers in its report.

Mr. Westendorf said that is because several important deals are still in the negotiation stage but could have a large impact if they come to fruition.

“There’s activity at One SeaGate. We are talking multiple proposals and multiple floors,” he said.

Mr. Westendorf said ProMedica’s announcement to make its headquarters downtown has helped with an influx of interest in downtown office space. 

“I’m very excited by the momentum and the energy that happening downtown,” he said.

Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.

First Published July 16, 2015, 4:00 a.m.