Quote:
Originally Posted by City Wide
One positive factor with this project is the developer has put a lot of time and resources into this to date. But if somehow they determine that the market for the product they are offering----apartments and condos that might be available early 2022----is dead or largely dried up, then I could see how they might want to cut their loses and put the project on hold. Nobody here wants that outcome, but if they choose to go that route I'd understand why.
While I generally agree with you about new projects there might be selected ones that get build. If someone could pre-sell 10 out of a 20 unit, very high end condo plan, that might fly. Or if the Schuylkill Yards lands a couple of larger tenants they might well try to build the residential tower on JFK Blvd. Being in walking distance from the station and 60 minutes away from Manhattan could be a real plus.
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I think a factor in our favor is that this type of market research will simply be unavailable. Projections likely shift radically each day depending on news from public health officials, relief actions by the government, and the currently wildly fluctuating stock market.
When construction is allowed to resume sometime in the near future, they'll have to make a decision on whether or not to proceed with very little actionable information. Since this is the case, I just have to imagine they will default into just continuing construction, because stopping just seems more risky to me.
Accounting for site prep, foundation, etc, this building is probably 10 or 15 percent completed? But they've probably already spent half or more of what they project to spend on construction. If they cut their losses, that would be one hell of a cut. Seems like the more drastic decision to make considering it may not even be necessary.
If they finish building it and there's no market for the units, they'd have a disaster on their hands, but if either way is a disaster, why not go the route that at least has a chance to work out? The people who could afford to live here in the first place are not being nearly as affected by all this as less wealthy citizens. So by 2022, they might have no problem selling units and if they do have trouble there will likely be some type of government relief that they could pursue.