Quote:
Originally Posted by mcgrath618
This project is very serious though, according to the article in the OP. The plan has always been: demo in Q3-4 2020, construction in Q1-2 2021.
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The reason that this building will likely be constructed soon is not because of tax abatement issues, nor necessarily because demand is strong, albeit it well may be. This and other buildings, whether office, apartments or whatever will be constructed now because one of the major components of cost has been dramatically reduced, that of financing cost. In real estate development, financing isn’t just an aspect of the business, it IS THE BUSINESS. With construction financing costs around 25% of what they have averaged over the last six decades and long term financing at levels not seen in the lifetimes of developers, it is simply too attractive to develop. Property owners in 5,10, or 20 years will look back on this opportunity and smile.