OFFICIAL - Waddell & Reed - 14th & Baltimore

[beautyfromashes]

Still rather baffling the architects thought it a good idea to use windowless panels. Something you'd see in cold war era telcom buildings or when security a priority.

The panels mostly cover parking levels. Looks like there are a few areas on the upper levels but mostly glass.

[Chris Stritzel]

Patiently waiting for a tenant...

[Link2]

Patiently waiting for a tenant...

Tenant has been confirmed -- but they have yet to announce.

[earthling]

^BCBS?

[Link2]

^BCBS?

I honestly do not know the actual tenant who will be taking the space. I just know it'll be a new HQ for some entity -- very scarce on details. But reps for the property have been informing prospective tenants of the news.

[Cratedigger]

Whoa! Huge news. Hope it’s outside of KCMO but honestly will just be great to have it filled.

I did see a group in business casual there yesterday and this weekend. First time I’d seen anyone outside of maintenance/construction crews in a while

[earthling]

If it's Blue Cross, just a sideways move for downtown office market. Would be great news if from outside KCMO. And the 'success' also depends on whether they got asking price/rates or had to low ball. The latter might deter near term spec building.

[Highlander]

If it's Blue Cross, just a sideways move for downtown office market. Would be great news if from outside KCMO. And the 'success' also depends on whether they got asking price/rates or had to low ball. The latter might deter near term spec building.

BCBS would be a slight positive as they would at least be moving inside the loop but another downside would be that it would remove one of KC's better large parcels of available office space from the market. That would have negative impact for attracting an outside company to KC that needs space quickly. The present BCBS space is older and not likely to attract a high profile tenant.

[AlkaliAxel]

If it's Blue Cross, just a sideways move for downtown office market. Would be great news if from outside KCMO. And the 'success' also depends on whether they got asking price/rates or had to low ball. The latter might deter near term spec building.

I wouldn't say it's for nothing, because it might be enough to spur another office building to be built.

[normalthings]

If it's Blue Cross, just a sideways move for downtown office market. Would be great news if from outside KCMO. And the 'success' also depends on whether they got asking price/rates or had to low ball. The latter might deter near term spec building.

I wouldn't say it's for nothing, because it might be enough to spur another office building to be built.

The asking sublease is at a discount to what W&R is paying which itself is discounted from the construction cost via incentives.

It’s something like $50-60PSF true cost. W&R I think was going to pay $40’s and sublease ask was in the $30s. I could be wrong on the exact numbers but that’s the general structure.

Is it correct that BCBS wouldn’t qualify the structure for the incentives?

[AlkaliAxel]

If it's Blue Cross, just a sideways move for downtown office market. Would be great news if from outside KCMO. And the 'success' also depends on whether they got asking price/rates or had to low ball. The latter might deter near term spec building.

I wouldn't say it's for nothing, because it might be enough to spur another office building to be built.

The asking sublease is at a discount to what W&R is paying which itself is discounted from the construction cost via incentives.

It’s something like $50-60PSF true cost. W&R I think was going to pay $40’s and sublease ask was in the $30s. I could be wrong on the exact numbers but that’s the general structure.

Is it correct that BCBS wouldn’t qualify the structure for the incentives?

If I crunched those numbers correctly it should still be enough to get either the Podium or Strata off the ground, since both are about shovel ready & already have contractor

[normalthings]

I wouldn't say it's for nothing, because it might be enough to spur another office building to be built.

The asking sublease is at a discount to what W&R is paying which itself is discounted from the construction cost via incentives.

It’s something like $50-60PSF true cost. W&R I think was going to pay $40’s and sublease ask was in the $30s. I could be wrong on the exact numbers but that’s the general structure.

Is it correct that BCBS wouldn’t qualify the structure for the incentives?

If I crunched those numbers correctly it should still be enough to get either the Podium or Strata off the ground, since both are about shovel ready & already have contractor

I’m on mobile but if a 1400KC tenant is paying $30PSF and new incentivized construction needs $40PSF+ then how does this pencil for additional construction?

[TheLastGentleman]

Is the garage going to be public? It’s still boarded shut so I guess they’re waiting for a tenant to move in before opening it

[AlkaliAxel]

The asking sublease is at a discount to what W&R is paying which itself is discounted from the construction cost via incentives.

It’s something like $50-60PSF true cost. W&R I think was going to pay $40’s and sublease ask was in the $30s. I could be wrong on the exact numbers but that’s the general structure.

Is it correct that BCBS wouldn’t qualify the structure for the incentives?

If I crunched those numbers correctly it should still be enough to get either the Podium or Strata off the ground, since both are about shovel ready & already have contractor

I’m on mobile but if a 1400KC tenant is paying $30PSF and new incentivized construction needs $40PSF+ then how does this pencil for additional construction?

It all depends on whether BCBS is qualifying for the incentives or not. If they're not, then we have the room for another spec office.

[normalthings]

If I crunched those numbers correctly it should still be enough to get either the Podium or Strata off the ground, since both are about shovel ready & already have contractor

I’m on mobile but if a 1400KC tenant is paying $30PSF and new incentivized construction needs $40PSF+ then how does this pencil for additional construction?

It all depends on whether BCBS is qualifying for the incentives or not. If they're not, then we have the room for another spec office.

Reading this wrong. New Tenant is pays the sublease rate. W&R pays the difference between the sublease and incentivized lease rates. Owner and/or WR covers the difference between incentivized and full rate.

Other offices won’t start until they get preleased

[Cratedigger]

$38.5 sqft/yr sublease sound about right?

https://www.commercialsearch.com/commer ... velopment/

https://www.cbre.com/properties/propert ... =isLetting

[normalthings]

$38.5 sqft/yr sublease sound about right?

https://www.commercialsearch.com/commer ... velopment/

https://www.cbre.com/properties/propert ... =isLetting

Could be it. Below the number WR was to have paid

[beautyfromashes]

I don't think it's BCBS. I have a friend that works there and would know. I'll ask him.

[KCDowntown]

I don't think it's BCBS. I have a friend that works there and would know. I'll ask him.

Not that it proves anything one way or the other, but BCBS recently bought the below-grade parking lot adjacent to their HQ next to Washington Square Park.

KCDowntown

[GRID]

Probably a law firm.