It's important to remember that these building is only 1/4 of a block. Garages in buildings this slender are extremely inefficient due to the limited flat open space for actual cars.
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Originally Posted by futures
Why wouldn't they build more floors if Parsley has leased all 18 floors?
Wouldn't you maximize your investment by building more floors for other tennants and/or expansion for Parsley in the future?
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There might be a finite amount of money that they are have to spend. You would be asking for more money from an investor and telling him it'll take longer to recoup it. You are also increasing the amount of time it'll take to recoup your investment especially since they are building 1 floor of garage for every 1.3 floors of office. It's not only the 1 time extra in construction costs but also the increased costs of utilities, and building maintenance from more floors.
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Originally Posted by AustinGoesVertical
With such robust demand for Class A office space in the CBD, I don't understand why these office proposals continue to be disproportionately made up of parking. And if there needs to be a 10+ story parking podium, then why aren't they building more office space into the project.
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Adding more levels for offices also adds more levels for garages. At some point, you reach a reasonable (and likely legal) limit of how many levels of garage you can build so you can't keep building office levels because they don't have the parking spaces to support them.
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Originally Posted by AustinGoesVertical
If a developer is getting this entire building pre-leased prior to groundbreaking, then they're just leaving money on the table by not maximizing the use of the land. There are only so many downtown sites. These new office towers need to be 600-700 ft, not 30-stories. Construction costs obviously increase with added height, but with pre-leased demand like this, not spec projects, financing should be easier to get. And you leverage your return with debt if you leverage the size of the project as well.
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[Not trying to be jerkish. Really asking] If it's so simple and makes so much sense then why is it happening like this?