Quote:
Originally Posted by whatdoyouwantandwhy
I do not understand why every developer is fascinated by building box shaped 4-5 story apartments, especially in the more central parts of downtown. And I don't even care for tall skyscrapers but at least something a little taller than 5 floors.
*sorry another rant*
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Because you can generally only build with wood framing up to four floors. When you get above four floors, there are a whole host of new construction requirements (steel/concrete construction) and costs incurred.
As average rents rise in downtown and near north, 5 story plus construction will become more economically viable. As high as average rents are becoming on Broadway ($1.70 to $2.00), we're still not quite at the point where a pro forma will pencil with anything but wood framing for most developers.
Developers would probably love to go vertical because that means more units and more revenue. But at the end of the day, they have to persuade a lender to finance the project. Lenders won't finance vertical until rents are proven to support a vertical project. Austin has been there for 10 years. We're not far from that point. Expect to see 5+ story projects in the next few years.