Office project at 27th & Main

[alejandro46]

The surrounding lot would be perfect for 4-5 story residential over retail. I wish it would be better integrated/connected into the overall building design to create a cohesive built urban environment versus another corporate island.

[CorneliusFB]

They will not be precluded from developing on the north portion of the lot in the future (so long as Crown Center signs off on architectural plans). In the near term, Midtown KC Now wants to work with them to activate that lawn so it is more of a public amenity and gateway from the streetcar stop to the development to the east. Long term there is still a chance for retail development along 27th street and the intersection with Main.

[chaglang]

Theoretically anything to the north would share that bloated garage.

[moderne]

I am surprised that CC and the Halls family are OK with this plan. Although CC is insular and its urbanity is turned inward, from Grand parking structures are behind buildings or completely under, not fronting. This building does not seem to adhere to the original vision. Fidelity's current HQ has the parking behind, not facing the blvd.

[earthling]

BizJournal says..

Pending the city’s nod on final design, Fidelity Security Life Insurance Co. could break ground in October on an 11-story tower near Crown Center, about one-third of which will be rented out.

https://www.bizjournals.com/kansascity/ ... uarez.html

[DaveKCMO]

One third? So this is really a spec project?

[moderne]

Is this still on schedule? Any design revisions?

[normalthings]

Is this still on schedule? Any design revisions?

If this was on schedule, it would be going by kow I think.

[swid]

Unsurprisingly, this project came up during the last week's Union Hill neighborhood association meeting.

The board said they've heard absolutely nothing from Fidelity recently and that Hallmark still owns the parcel, so if it is still happening, it's gone *very* quiet.

[earthling]

At the time of announcement they may have thought remote/hybrid trend would be significantly subsiding by now. Office return not as much as expected in some markets. Depends on what's happening internally but they may be holding out to see how dust settles then either pull trigger or perhaps pursue less space in an existing building along RCP corridor. Or could simply be holding for construction and supply chain uncertainties to settle down. There are uncertainties from many angles when it comes to office.

[dukuboy1]

Makes sense & honestly my guess is new office buildings will be something few & far between the next 2-3 years. Pretty much all new “towers” will be residential, hotels, or mixed use of residential & or office or hotel.

I also wonder when companies become a bit more structured with flexible/hybrid work. Meaning on-site office work is 3-4 days a week, 1-2 days WFH. But with flexibility for workers to work remotely for times when child care emergencies pop up, family or medical emergencies, etc. IMO working in an on-site office is important. WFH flexibility is fine and an option when needed. However it is important to be in the moment with people and see how they react to interpersonal situations. I think that it becomes hard to promote people & or have people move into different roles outside of their current career path. The world is more connected by technology now but at the same has us more disconnected. Knowing how to communicate in person is a skill that can only be learned in person. Zoom & Teams allows for collaboration but nothing I would call true team building. I hope business pivot & decide that bringing workers back together is as important as providing the flexibility

[earthling]

Makes sense & honestly my guess is new office buildings will be something few & far between the next 2-3 years. Pretty much all new “towers” will be residential, hotels, or mixed use of residential & or office or hotel.

I also wonder when companies become a bit more structured with flexible/hybrid work. Meaning on-site office work is 3-4 days a week, 1-2 days WFH. But with flexibility for workers to work remotely for times when child care emergencies pop up, family or medical emergencies, etc.

Yeah that seems to be a realistic settling down point for a lot of companies. The question is what % of companies and what % of employees will qualify for various forms of remote/hybrid when the dust settles.

If/when the remote/hybrid 'barometer' improves to 70% return that's still a hard hit on office industry. Even 80% return or 20% out any given day is pretty significant hit for offices (and lunchtime foot traffic) though office jobs are growing at a faster rate than other industries in US that should help offset some. Not in KC anymore, office jobs have apparently slowed down and KC metro has a lot of office space for its size.

[dukuboy1]

I think the 10-20% number of remote workers will be the spot for companies long term. It will be interesting to watch to see if promotions & such become more weighted toward people who are onsite and in the office more, especially if Senior Mgnt, who are making those decisions are in the office more. They will have a recency basis for sure especially if 1 person interacts daily or 3 days a week in person vs. a completely remote worker. Plus companies are going to be watching how their own culture will be imparted in new employees. Culture is a major factor to retaining talent & core to developing talent for your organization. Remote work creates a huge disconnect to that & creates an environment of no real company loyalty or at the very least company biases that help keep employees.

[earthling]

A year ago I was thinking 10% or so would stick when dust settles but the longer the return takes, the more some companies get used to making it work. Could be closer to 20% in/out on work daily basis when dust settles. The return has flattened according to the Kastle barometer though they only track a handful of markets. Locally we know that Cerner is significantly embracing remote/hybrid and many companies may have no choice for roles that are hard to fill.

[dukuboy1]

I think at some point there will be a snap back, like a rubber band. Companies were forced to stretch out their remote work force and go WFH because they had no choice. Now they have a choice and will evaluate things closely and there may be a point where that rubber band snaps back. I just feel anytime you are forced to make decisions and change so quickly out of desperation/preservation there will be a natural regression back to the previous mean. I also definitely think there are positives from this and all companies invested heavily in the offsite networks and ability to allow for easy WFH. So there are some good things and the idea of flexibility will be there now going forward. But I foresee some adjustment in the upcoming years. WFH will never go away and will always be a viable option but it will be more of a flexible perk to be used as needed within your daily/weekly onsite work expectation. But that's just my opinion and I could be waaay off base

[kenrbnj]

I think at some point there will be a snap back, like a rubber band. Companies were forced to stretch out their remote work force and go WFH because they had no choice. Now they have a choice and will evaluate things closely and there may be a point where that rubber band snaps back. I just feel anytime you are forced to make decisions and change so quickly out of desperation/preservation there will be a natural regression back to the previous mean. I also definitely think there are positives from this and all companies invested heavily in the offsite networks and ability to allow for easy WFH. So there are some good things and the idea of flexibility will be there now going forward. But I foresee some adjustment in the upcoming years. WFH will never go away and will always be a viable option but it will be more of a flexible perk to be used as needed within your daily/weekly onsite work expectation. But that's just my opinion and I could be waaay off base

I believe you are wholesale correct.

With the labor market tight for the moment; employers are reluctant to enforce full on-site policies.

However, when the labor market normalizes, bosses will insist the added cost of housing an employee reaps a quick ROI in productivity.

Yes, it is understood some employees are exceptionally productive in a WFH environment. However, the HR concerns of pointing at a less-productive WFH employee with "You must come in. Bob over there is productive, he can WFH." -- untenable. In this day-and-age where everyone has an "identity", there is far too much latitude for lawsuit, preventing one to grant privilege on merit. From an HR perspective, all must be treated equally regardless of performance, lest you have a lawsuit by the less productive.

Further, on-boarding new employees, advancement, collaboration, system integration tasks, etc: A logistical pain in the ass.

The office building is far from dead. Invest in REITs accumulating office space. You'll be rewarded.

[earthling]

End of this year will be a big test for office absorption nationally as JLL says a record number of lease renewals are coming up second half of this year. The office industry is bracing itself for a hit but Class A could benefit in some markets.

Would expect in 5 years a 10% remote/hybrid scenario would be best case scenario but 20%+ is looking more possible now that more have it figured out. Some companies were looking to reduce space with hybrid before pandemic anyway, the last 2 companies I worked for were. Some roles like claims processors, help desk/call centers to IT programmers don't need to be in office very often outside new hires for maybe first year - is a major cost savings on office space. More businesses look at the office as a place for collaboration now rather than primarily for productivity, but it won't be most.

[normalthings]

Back to subject, hope this project happens. Not much visual progress along the streetcar when it opens. Katz and Maybe the North-point project?

[dukuboy1]

sorry to derail the topic, just an observation along with the lack of movement that I feel it mat not happen for at least a year, min. Would love for it to start, as some material costs have come down, but rates on loans are up. It never ends....

[AlkaliAxel]

BizJournal says..

Pending the city’s nod on final design, Fidelity Security Life Insurance Co. could break ground in October on an 11-story tower near Crown Center, about one-third of which will be rented out.

https://www.bizjournals.com/kansascity/ ... uarez.html

I have a hunch we see movement on this project soon.

With it already having 1/3rd leased and 1400KC off the market for any tenants, it's perfectly suited to be built and fill out the other 2/3rds of its tenant space now.