OFFICIAL - Strata (H&R Block's 2nd Tower)
- normalthings
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
the lights are always on at Jos A Bank now. Is anything going on with that?
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
New Motel 6?normalthings wrote: ↑Mon Jan 25, 2021 1:26 pm the lights are always on at Jos A Bank now. Is anything going on with that?
- TheLastGentleman
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
This project went silent
- normalthings
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
Its dead without a tenant wanting to go downtown
- beautyfromashes
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
There won’t be any activity until after the W&R tenant is resolved.
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
Yeah W&R is now essentially speculative and office recovery could take a while. Though KC doing better than rest of US with office using job growth.
- Anthony_Hugo98
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
What’s the likelihood corporate America sees cities like KC as the key to office relocation and downsizing, as well as lower cost of operation and living?
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
Given that most larger cities are seeing greater increases in vacancy it would actually seem more likely that any relocations will occur to those cities that have a lot of available space at reduced rates. Several of the top 20 metros have over 20% vacancy, including DFW and ATL which are relatively low cost with best air service. KC might be attracting work from anywhere workers though.
Traditionally, office developers used to like to see below 12% vacancy to build spec (no pre-lease) but with low interest rates some may go for it in hot markets.
Traditionally, office developers used to like to see below 12% vacancy to build spec (no pre-lease) but with low interest rates some may go for it in hot markets.
- Anthony_Hugo98
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
So safe to say this project will be shelved for the foreseeable future?earthling wrote: ↑Sun Jun 27, 2021 8:50 am Given that most larger cities are seeing greater increases in vacancy it would actually seem more likely that any relocations will occur to those cities that have a lot of available space at reduced rates. Several of the top 20 metros have over 20% vacancy, including DFW and ATL which are relatively low cost with best air service. KC might be attracting work from anywhere workers though.
Traditionally, office developers used to like to see below 12% vacancy to build spec (no pre-lease) but with low interest rates some may go for it in hot markets.
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
^Depends on their criteria and how fast/slow W&R leases out.
- normalthings
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
The southern cities continue to offer more all aroundAnthony_Hugo98 wrote: ↑Sun Jun 27, 2021 8:42 amWhat’s the likelihood corporate America sees cities like KC as the key to office relocation and downsizing, as well as lower cost of operation and living?
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
If the western heat waves, forest fires and water problems become normal I would expect to see people move back east and north.Anthony_Hugo98 wrote: ↑Sun Jun 27, 2021 8:42 amWhat’s the likelihood corporate America sees cities like KC as the key to office relocation and downsizing, as well as lower cost of operation and living?
- Highlander
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
Actually, not having large amounts of spec space available has hurt KC with regard to some corporate relocations.Anthony_Hugo98 wrote: ↑Sun Jun 27, 2021 8:42 amWhat’s the likelihood corporate America sees cities like KC as the key to office relocation and downsizing, as well as lower cost of operation and living?
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
^More specifically large amounts of available Class A or B+ space, whether existing or spec built. With DFW/ATL growing vacancies, they have a better shot at grabbing relocations given so many other pluses.
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
I expect W&R to open with a tenant occupying a majority, if not all, of the space.
The other office building I see being built and completed before Strata is the one next door to Hotel Kansas City.
- beautyfromashes
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
W&R filling up or attracting a relocation just by being there should immediately show that speculation is possible in this city and spur future development immediately. Just continuing to have one high class tower in process and another planned right behind it would dramatically grow business movement here. It would be a better incentive than any condo build.
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
Yes and this is why I think we might see a few other developers move up their plans to build office towers.beautyfromashes wrote: ↑Sun Jun 27, 2021 3:55 pm W&R filling up or attracting a relocation just by being there should immediately show that speculation is possible in this city and spur future development immediately. Just continuing to have one high class tower in process and another planned right behind it would dramatically grow business movement here. It would be a better incentive than any condo build.
- GRID
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
This is not a "likely" scenario. This is what will happen. Just like how it happened the last recession. The cities that have all the big empty empty new office buildings now, will eventually recover and have a lot more leased space and jobs in the long run as they will have so much more to offer relocating companies etc.earthling wrote: ↑Sun Jun 27, 2021 8:50 am Given that most larger cities are seeing greater increases in vacancy it would actually seem more likely that any relocations will occur to those cities that have a lot of available space at reduced rates. Several of the top 20 metros have over 20% vacancy, including DFW and ATL which are relatively low cost with best air service. KC might be attracting work from anywhere workers though.
Cities like KC that struggle to build a small 250,000 sq ft office building every decade are barely even relevant in the national market.
It is what it is. KC needs large class A new construction buildings. Even if they sit empty for a few years, the city would benefit in the long run.
New spec office buildings often sit empty for years even in the most active large cities. KC is super lucky it had the Morgan empire building spec towers in the 80's or the skyline would look nearly unchanged since the 60's.
- normalthings
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
Towers come at a significant construction cost premium over mid and low rises. Yet, it seems like exclusively towers are proposed in KC. I do wonder if we would have more success if some 100,000 to 250,000 midrises were proposed instead. Rents would be more palatable to KC-based firms. Children's Mercy Crossroads Parking Lots, Freight House Parking Lot, or Riverfront could work for this.GRID wrote: ↑Sun Jun 27, 2021 9:41 pmThis is not a "likely" scenario. This is what will happen. Just like how it happened the last recession. The cities that have all the big empty empty new office buildings now, will eventually recover and have a lot more leased space and jobs in the long run as they will have so much more to offer relocating companies etc.earthling wrote: ↑Sun Jun 27, 2021 8:50 am Given that most larger cities are seeing greater increases in vacancy it would actually seem more likely that any relocations will occur to those cities that have a lot of available space at reduced rates. Several of the top 20 metros have over 20% vacancy, including DFW and ATL which are relatively low cost with best air service. KC might be attracting work from anywhere workers though.
Cities like KC that struggle to build a small 250,000 sq ft office building every decade are barely even relevant in the national market.
It is what it is. KC needs large class A new construction buildings. Even if they sit empty for a few years, the city would benefit in the long run.
New spec office buildings often sit empty for years even in the most active large cities. KC is super lucky it had the Morgan empire building spec towers in the 80's or the skyline would look nearly unchanged since the 60's.
Heck, you can do tilt-up construction up to 100 feet now. Let's do a tilt-up office building at the Riverfront. Make it as affordable as possible to construct and attract a local tenant. More will follow.
JP Morgan would not have backed 1400 Baltimore if it did not have a tenant. It would be great if we had local financial institutions that could/would lend to spec downtown office.
Last edited by normalthings on Sun Jun 27, 2021 10:09 pm, edited 4 times in total.
- TheLastGentleman
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Re: OFFICIAL - Strata (H&R Block's 2nd Tower)
One of the largest skyscrapers in new york city's history was announced in the middle of the pandemic. Guessing the demand hasn't gone down too much there, or places like it