OFFICIAL - Waddell & Reed - 14th & Baltimore

[Chris Stritzel]

In my opinion, getting this building filled, with a single tenant or multiple, is the key to pressing "start" on the other spec office buildings in downtown kc (13th and Wyandotte, Strata, and Podium) and kicking off a grander building boom. 13th and Grand and 1034 Main are the two more unlikely ones to happen regardless and should find salvation as residential. But the future of office development in downtown kc falls onto the success of 1400 Baltimore. Things would really move fast if a tenant was known on a national level and preferably one from a city like Chicago or from the northeast. While unlikely, getting a tenant like that would really do wonders.

[normalthings]

Tenant interest is local. Not catching the eye of National relocations.

How heavily is it being advertised to companies outside the area though?

Wait, I thought we were told companies would be lining up to come downtown if there was just a class A spec space ready to go? Kidding aside, Bob Fagan with CBRE is marketing the space. He has about as good of national connections as anyone else. The turmoil at the EDC might not be helping though.

EDC staff started running for the hills once Lucas elected and especially once he cut the budget. It will need to be rebuilt. KCEDC does little when it comes to national attraction. KCADC attracts businesses to region and then sends them to KCEDC if that area is what they are looking for.

[Highlander]

In my opinion, getting this building filled, with a single tenant or multiple, is the key to pressing "start" on the other spec office buildings in downtown kc (13th and Wyandotte, Strata, and Podium) and kicking off a grander building boom. 13th and Grand and 1034 Main are the two more unlikely ones to happen regardless and should find salvation as residential. But the future of office development in downtown kc falls onto the success of 1400 Baltimore. Things would really move fast if a tenant was known on a national level and preferably one from a city like Chicago or from the northeast. While unlikely, getting a tenant like that would really do wonders.

I think this is accurate. The downside is that if it goes unleased for a long period of time it will be seen as confirmation for what many already suspect about KC; that building speculative offices downtown is a very risky proposition.

[beautyfromashes]

I’m hearing there’s interest, just not the perfect interest. The building is set up best as a single tenant and I think that is what they would like to rent it as. While I think there has been minimal outside KC interest, that doesn’t mean that one of the companies couldn’t pull the trigger on it quickly if they made a decision to move. I’d be surprised if this bragged out much longer anyway. Just takes one party to close it.

[AlkaliAxel]

The only thing I care about with this building is that is gives off enough demand to get Strata built.

[earthling]

In my opinion, getting this building filled, with a single tenant or multiple, is the key to pressing "start" on the other spec office buildings in downtown kc (13th and Wyandotte, Strata, and Podium) and kicking off a grander building boom. 13th and Grand and 1034 Main are the two more unlikely ones to happen regardless and should find salvation as residential. But the future of office development in downtown kc falls onto the success of 1400 Baltimore. Things would really move fast if a tenant was known on a national level and preferably one from a city like Chicago or from the northeast. While unlikely, getting a tenant like that would really do wonders.

I think this is accurate. The downside is that if it goes unleased for a long period of time it will be seen as confirmation for what many already suspect about KC; that building speculative offices downtown is a very risky proposition.

It's the _ultimate_ test and no one knows the outcome yet. Nearly complete and no major lease announced is mildly concerning. If they have to drop rates to attract tenants, is also not a good momentum for more spec. High vacancy in Crown Center doesn't help either.

[beautyfromashes]

Wouldn’t be kcrag without some good ol’ KC panic.

[earthling]

Just setting expectations, not enticing panic. Would be awesome if an outside company grabbed the building. But chances not high with nearly all markets with high Class A vacancy and better air service.

[beautyfromashes]

Just setting expectations, not enticing panic. Would be awesome if an outside company grabbed the building. But chances not high with nearly all markets with high Class A vacancy and better air service.

Expectations sometime have the ability to influence reality.

[earthling]

Pursue for the best case, prepare for the worst.

[beautyfromashes]

Pursue for the best case, prepare for the worst.

Prepare for the worst, get the worst.

[earthling]

^The difference between a balls out gambling problem and level headed investing.

I'm sure the investors in this building are well prepared for worst case scenario but if their worst case scenario happens (such as lower lease rates, longer term ROI), likely doesn't bode well for future spec momentum.

[AlkaliAxel]

DColeKC has mentioned something awhile back about hearing there'd prob be a tenant ready when it's open

[earthling]

^Hopefully a good chunk of building at the asking lease rate.

[beautyfromashes]

^Hopefully a good chunk of building at the asking lease rate.

man, you're cynical! It just takes one or two people saying there's no demand (when there is!) or throwing out "dropping asking lease rate!" messages that get picked up by others who add to it to "there is absolutely no interest in renting 1400KC. DT is dying!" I just don't get the motivation. It's pure conjecture. If you're for development and spec office construction DT, just don't start negativity.

[earthling]

^Huh, curious take. Highlander brought it up too. Was that also cynical? We're just talking realistically potential scenarios given office vacancy already high and still rising overall, which impacts lease rates in the industry so also brought up. Take a closer look at the office thread. The building will probably draw but the point was that if at a lower leasing rate or slow uptake, it will probably slow down momentum for Strata, etc.

If it leases up quickly at the asking rate, great news for Strata! This building will be the telling test.

[AlkaliAxel]

But when is this building supposed to be done by?

[normalthings]

But when is this building supposed to be done by?

Next year

[Highlander]

^Hopefully a good chunk of building at the asking lease rate.

man, you're cynical! It just takes one or two people saying there's no demand (when there is!) or throwing out "dropping asking lease rate!" messages that get picked up by others who add to it to "there is absolutely no interest in renting 1400KC. DT is dying!" I just don't get the motivation. It's pure conjecture. If you're for development and spec office construction DT, just don't start negativity.

I do not think that's a cynical take. KC's development community has always had an aversion to risk. Grid also has written volumes about this subject. Given that there have been historically so few purely speculative offices built in downtown, it's only natural and expected that the community would eagerly await the results of the leasing effort, seeing them either as a reason to move forward or as a reason to exercise caution.

[moderne]

The solid cladding("big blank walls") has an interesting pattern. The tiles are sized and set in the same pattern as the limestone blocks on the upper portion of Municipal Auditorium, but vertical. Wonder if there is a spot where one can see both at the same time?