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We're not talking about a different part of town. We're taking about a different building with a 25+% premium over buildings in the immediate vicinity. This isn't a knock on Greensboro. I'm not comparing Greensboro to any other city. I'm comparing Greensboro to Greensboro, and the financial case has to be made in order for existing companies in the city to move into the building, or for new companies moving to GSO to choose that specific building. This is all part of why I prefer more low and mid rise growth (and I say this about WS also) that is less costly and can broaden the urban fabric of the CBD. A single expensive project that soaks up tenants isn't always a good thing if tenants DO choose to pay the premium. And in this case I'm not sure that they would. I wouldn't. If my company were moving to Greensboro, I'd repurpose existing space. There's still plenty of beautiful vacant space.
yes its a premium rate but there are companies willing to pay a premium rate for a premium address. Like I said its all about location. Its the same reason why residential tenants are willing to pay a premium to live in downtown apartments. I just read news that a company is planning to relocate its offices from Green Valley Office Park to an office tower in downtown Greensboro where leasing rates are higher than their current location. Its all about location location location.
Adding a hotel to the project helps make it even more financially feasible. Then there is the question of incentives. As for what company or companies would occupy the building, we can only guess. I do know that Action Greensboro and DGI and actively trying to lure a major corporate headquarters downtown. Its possible there could be some collaboration going on between Roy Carroll, Action Greensboro, DGI and some unknown company considering a relocation to downtown. But that is only speculation.
yes its a premium rate but there are companies willing to pay a premium rate for a premium address. Like I said its all about location. Its the same reason why residential tenants are willing to pay a premium to live in downtown apartments. I just read news that a company is planning to relocate its offices from Green Valley Office Park to an office tower in downtown Greensboro where leasing rates are higher than their current location. Its all about location location location.
Adding a hotel to the project helps make it even more financially feasible. Then there is the question of incentives. As for what company or companies would occupy the building, we can only guess. I do know that Action Greensboro and DGI and actively trying to lure a major corporate headquarters downtown. Its possible there could be some collaboration going on between Roy Carroll, Action Greensboro, DGI and some unknown company considering a relocation to downtown. But that is only speculation.
Name some companies willing to pay this premium rate to be in downtown Greensboro, and post links please. I'm very interested in a list of these companies. We aren't talking about current downtown rates, but the excessive rate that this new building would have to charge to be what he has envisioned.
It didn't always, it has to start somewhere at some point.
And it didn't start by throwing up a new tower that charges rates that are too expensive for the current market. It was a gradual thing that happened over many years...it certainly didn't happen overnight, and Charlotte had the bank headquarters to support the higher rates for Uptown.
I'm not saying it could never happen for downtown Greensboro - it certainly could. But it can't be forced by building a spec tower that the market can't support.
And it didn't start by throwing up a new tower that charges rates that are too expensive for the current market. It was a gradual thing that happened over many years...it certainly didn't happen overnight, and Charlotte had the bank headquarters to support the higher rates for Uptown.
I'm not saying it could never happen for downtown Greensboro - it certainly could. But it can't be forced by building a spec tower that the market can't support.
How do you know what is and isn't too expensive for the market? Market rates won't stay the same forever. They will continue to rise as the city grows
50% higher than the current average is too expensive.
How do you know what companies can afford or want to pay? Its not more than 50% btw. According to the article it was about ten more dollars or so a square foot.
How do you know what companies can afford or want to pay? Its not more than 50% btw. According to the article it was about ten more dollars or so a square foot.
Ten dollars more than 20 dollars is a 50% increase.
How do you know what companies can afford or want to pay? Its not more than 50% btw. According to the article it was about ten more dollars or so a square foot.
Maybe because of my 30 year career in commercial real estate and economic development. Maybe because I understand basic business concepts and economics. Maybe because I understand companies have fiduciary responsibilities to their owners to maximize ROI. Maybe because I'm able to calculate percentages. None of which you seem to have any grasp of.
How do you know what is and isn't too expensive for the market? Market rates won't stay the same forever. They will continue to rise as the city grows
Maybe because Roy Carroll himself said it may not be feasible?
EDIT: It's worth noting that just like the Triumph Center we are now several pages of posts (14 and counting) with out an official proposal, site, formal design, zoning request or even word from the Developer in question that this has moved beyond just an idea stage.
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