Quote:
Originally Posted by mhays
It's designed as a one-tenant building. Multi-tenant buildings typically have some work done to partition off utilities, open up common areas, etc. I have no idea what this would cost, maybe not much.
|
Unless you're planning on filling it with low level, low rent back office or call center type jobs, the old adage "you have to spend money to make money" rings true in office space.
To get it back up to class A standards would cost untold tens of millions.
Being almost 4? decades old could require all new HVAC systems as well.
Or you find a high value tenant like Doug Jemal did in Buffalo in the former HSBC tower, where local M&T Bank wasn't afraid to spend $58M on their floors in the tower for a "tech hub" so the new owner can concentrate their money on the other floors.
The renamed Seneca One tower was around ~$160M transformation when you combine Jemal's investment and M&T's contribution.
It can be prohibitively costly to refurbish these huge behemoths and when there's
no current tenants, no income is generated and thus much lower value. Obviously the site specific issues of this particular building is doing it no favors as well.
It's not like NYC or even Toronto where land values alone are extremely high.