KCRag Forum

Why would anyone fund an office construction project right now?

DaveKCMO wrote: ↑Fri Jan 22, 2021 9:49 pm Why would anyone fund an office construction project right now?

Because interest rates are extremely low and the hope is that by the time the building is built, the pandemic will be over and business will be good. It seems like a good gamble.

Will be interesting to see how the dust settles in a few years. The KC market already has a massive amount of leasable office space for its size and adding more suburban space than even Chicago. Trends that may reduce demand like WFH, tighter co-working spaces and community tables rather than cubicles will be factors. Something like this scenario might create more Class A demand downtown, maybe.

Thank you for the info. Such a shame that project will not happen. It was a nice looking building that would have been a real nice asset to downtown. I really hope as things progress with COVID getting better through 2021 & the economic improvement that will follow it the projects that were put on hold or even scrapped will come back to life

DaveKCMO wrote: ↑Fri Jan 22, 2021 9:49 pm Why would anyone fund an office construction project right now?

FWIW, I was on a lunch and learn thing with some large private equity office folks and they remain bullish on the sector and new projects. This was nationally of course, not KC specific.

^Let's see if they put their money where their mouth is.

earthling wrote: ↑Wed Jan 27, 2021 1:15 pm ^Let's see if they put their money where their mouth is.

Big projects moving forward across the South.

We ate at The Town Company last night. Top notch food, drinks, and service. Only our second time eating indoors in a year, since they don't have any outdoor dining options and won't do room service for hotel guests.

Simeone Deary Transforms a Former Men’s Social Club Into a Boutique Hotel

Hotel Kansas City acknowledges the past while signaling a more inclusive future.

It’s probably a sign of the times that, in 2020, the task of renovating a former men’s social club would fall to a women-owned firm. That’s what happened when Hyatt commissioned Chicago-based Simeone Deary Design Group to update the Kansas City Club Building, originally built in 1922, into the 144-room Hotel Kansas City.
...

https://www.metropolismag.com/architect ... ic/111659/

New renderings from last month.

Really gussy up that corner

Good looking building for that corner and will help create a nice corridor down Wyandotte to the Lowe’s hotel. I hope this project happens

They have consistently improved the ground floor transparency of this building. Credit to the developer for engaging DNA early and being willing to listen.

smh wrote: ↑Tue Apr 20, 2021 4:34 pm They have consistently improved the ground floor transparency of this building. Credit to the developer for engaging DNA early and being willing to listen.

I dont think this is still happening though is it?

normalthings wrote: ↑Tue Apr 20, 2021 4:47 pm

smh wrote: ↑Tue Apr 20, 2021 4:34 pm They have consistently improved the ground floor transparency of this building. Credit to the developer for engaging DNA early and being willing to listen.

I dont think this is still happening though is it?

Can't say I've heard anything to the contrary. Figured given new renderings it was still moving forward?

This would be a great location for Union Pacific. Probably way too small though.

GRID wrote: ↑Tue Apr 20, 2021 8:06 pm This would be a great location for Union Pacific. Probably way too small though.

4000 workers in 1.3 million sq ft was their last move

https://www.up.com/timeline/index.cfm/n ... adquarters

I wouldn't be surprised if Warren Buffett bought Union Pacific just to keep them in Omaha. Berkshire-Hathaway already owns the majority of Burlington-Northern-Santa Fe.

I'm surprised that Buffett didn't buy Kansas City Southern before the Canadians came calling because of KCS's ownership of Mexican railroads.

https://financialpost.com/investing/warren-buffett-bnsf

flyingember wrote: ↑Wed Apr 21, 2021 8:40 am

GRID wrote: ↑Tue Apr 20, 2021 8:06 pm This would be a great location for Union Pacific. Probably way too small though.

4000 workers in 1.3 million sq ft was their last move

https://www.up.com/timeline/index.cfm/n ... adquarters

Union Pacific's headquarters is size of One Kansas City Place in sq. footage.

FangKC wrote: ↑Wed Apr 21, 2021 11:05 pm I wouldn't be surprised if Warren Buffett bought Union Pacific just to keep them in Omaha. Berkshire-Hathaway already owns the majority of Burlington-Northern-Santa Fe.

I'm surprised that Buffett didn't buy Kansas City Southern before the Canadians came calling because of KCS's ownership of Mexican railroads.

https://financialpost.com/investing/warren-buffett-bnsf

Doubt he would be allowed to buy it nor would he want to. He would own almost all of the US rail network west of the Mississippi.

UP leaving Omaha is just a matter of time. Rumors have been a move to Dallas (where BNSF is). Just wish KC would make a pitch. Being so close to Omaha would make the move reasonable for existing staff. Like to think KC is a place talent is generally okay moving to.

Kewitt is another big Omaha employer. They ended up keeping their HQ in Omaha but built a big new KC facility. I was told their KC operation is the same size or bigger than the HQ.