Quote:
Originally Posted by midwestrabbi
I was reading in the News that the Am-South Tower has less than 50% occupancy , because Regions pulled out of their lease and relocated to the R S A Tower. My question is are there any plans to renovate this building so they can attract new tenants ? Why would anyone want to build more highrise buildings when you have a huge building more than half empty ?
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1) I think you could safely say the (about to be changed) ownership wasn't very "hands-on" and let it get to poor condition which begged for former tenants to leave. And thus the RSA pounced.
2) The leasing agent claims they have several interested parties (new tenants) but needs the ownership situation to be straightened out to go forward (but hey, that could be typical real estate boosterism).
3) I'd think you could look at any other town, including exploding office building growth like in Atlanta, and find plenty of buildings getting left behind as more modern options come online. I would have to agree that there is no demand for another 40 story office tower in Mobile right now, but AmSouth's problems have a great deal to do with not re-investing to keep up with the times for 40 years than anything else. And of course, you can't fix the floor plate heights in that building for modern office needs. With that said, it wouldn't shock me if a brand new 20-floor office building wouldn't fill up reasonably quickly. Especially by the time it was done considering the "on the cusp" explosion the area seems to be at. The AmSouth better do something major soon or it'll be a pretty tall dilapidated structure sitting in a spot not easy to hide with new structures no matter how great the future demand.