Quote:
Originally Posted by Mopacs
If the city of Austin has its way, I think the Domain/Gateway districts will develop as you hope. As for offices, The Domain will consist of close to a million sq ft of offices when built-out (including a 175,000 sq ft office building nearing completion, near Macy's). Parks and a 5,000 seat ampitheater are planned for the eastern edge of the development. There are also early plans for 25-30+ story condo towers (probably 5-10 years down the road). Also, I spoke with one of the store managers, who indicates that the adjacent second phase, "Domain Crossing" will incorporate more of an entertainment component, including a bowling alley (Lucky Strike?) and arthouse cinema, among many others, as yet unnamed.
I do agree, its hard to 'create' a true urban texture from scratch, especially when mall developers like Simon are playing an integral role. I'm still very optimistic that The Domain will fulfill its potential!
As for the Arboretum... I think it will hold its own. Simon owns and manages both properties, and they certainly have a vested interest in keeping the Arboretum viable! The bigger impact has been on the non-simon properties nearby, such as Arboretum Crossing (which lost Circuit City and DSW to the Shops at Arbor Walk, and Great Hills Station, which lost Borders). The Arboretum/Gateway district is still a hot commodity, and most of the abandoned boxes should be backfilled soon. (Including a Target in the vacated Home Depot building, on Great Hills Trail).
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Just a few things…
First, Simon Property Group does not own The Domain; Endeavor Real Estate Group does. Currently, they just manage the leasing for Phase I. However, I believe Endeavor sold the land for the Domain Crossing to Simon a year or two ago and thus, Simon may own and manage that property.
Additionally, as far as I know, Endeavor has not chosen to partner with Simon for Phase II of The Domain. Rumor has it that Endeavor will be teaming-up with another retail developer for the management/leasing of Phase II. At least that is what I heard several months ago.
Second,
The Domain (Endeavor Real Estate Group's portion) will have over
3 million SF of office space when completely built-out (by 2017). In addition to the office space, the overall plan is to include 300+ hotel rooms, 3,000-4,000 residential units, a 7,000 seat amphitheatre, 1.6 million SF of retail, and a 10+ acre park. Again, this does not include the Domain Crossing (which is solely a Simon Property Group development). Plus, the office space being constructed across from Macy’s (in Building H) is actually 75,000 SF – not 175,000 SF.
Obviously, there will be further developments and redevelopments in the Gateway/N. Burnet neighborhood in the coming couple of decades. By roughly 2030, the City of Austin and the Gateway/N. Burnet neighborhood residents and business owners are envisioning the 2,243-acre (3.5 sq. mi) planning area to be one of high-density, mixed-use developments which will include as many as 82,000 residents (or 24,429 people/sq. mi.); 41,000 apartment, condo and town home units (0 single-family homes); and in excess of 51,500 jobs. Thus, the Arboretum will eventually feel the hurt as the center of commerce moves to its north and east… I wouldn’t be surprised if Simon, in the very near future, decides to sell their stake in the Arboretum. Its value will never be higher than it is today and as the Gateway/N. Burnet area develops, its sells price may reflect this new shift. The glory days of the once great Arboretum are pretty much over…