AlkaliAxel wrote: ↑Mon Aug 30, 2021 8:23 pm
Oh gee I’m sorry for assuming 87% population increase meant there was demand
You need to look forward and not backwards. If there was an 87% population growth in the past, that does not automatically mean it will continue. Have to evaluate the market today and where you think it will go in the future. That is more nuanced and involves interest rates, job growth, current comparable rents/occupancy, etc.
Job growth, high paying especially, is not there in downtown KC like it is in others. Construction vs rent or sales prices is troubling some developers that I work with. Interests rates are on our side right now and the reason why we are seeing this many projects be considered. Once rates move back up to pre-covid levels, we will see a drop off in construction until jobs/incentives/rents/demand increases.
I will say this: Cordish has not had problems filling their towers with minimal concessions. However, they benefit from having big incentives deal. I don't think the numbers are there yet to do towers with minimal or no incentives. Maybe around $3-3.50 it will become feasible.