Quote:
Originally Posted by PHXFlyer11
I'm not saying this will be a full build out of the vision. That rarely happens. But you said there as a zero chance of this happening. That simply is not true. This will happen and the market is right. Of course developers pay attention to others, but the market could not be any better in Tempe than it is now. Yes, there will always be other projects under construction and competition to deal with. All it takes is one large tenant to sign a pre-construction lease and you can move dirt. There are very few places that could fill the needs right now for a large tenant. Therefore vacancy rates for Class A large space requirements may as well be 0%.
Now sure, in theory Mill + Rio and HFL3 are competing with each other for the same tenants, but that's not necessarily true. In all likelihood their target lease lists are not identical. In addition, just because a project does beat them to market doesn't mean that the customer even needs the space yet at that time. Or maybe they would rather be on the other side of the 202. That is called good ole competition and up to the developers to tout the differentiates of their respective properties (location, price, amenities, lease length). If you don't believe your project to provide value and can't compete with others then you don't build.
I have no information to support SRP moving it, it was just a hunch.
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Oh okay, I think you just misunderstood me/I wasn't very clear. I said that there was 0 chance of it happening, but that 1 or 2 buildings would likely be built this cycle. In other words, 0 chance of it being built as one mega-development a la Marina Heights if it breaks ground in 2016 as planned. I didn't mean 0 chance of the project as a whole not happening. I still think there's a chance that it will completely fail, just based on the track record of these types of superdevelopments... but, I wouldn't say there's 0 chance because yes, there is a lot of office demand in Tempe and who knows? Maybe the additional office space being built will actually attract even more demand as others will want to be where the action is? Though I think it is worth noting that the demand is mainly in downtown Tempe - this site is outside those borders, and you have to admit that having Mill Ave within walking distance is a huge benefit to projects built in the core.
Selfishly, I hope the project doesn't get built in its current form. I think it's crappy that they scaled back the residential and retail portions. I think it's really important to build up residential centers near the light rail stops and this being just one or two stops from downtown, should be one of the first to develop into such IMO. A suburban office park on a prime light rail stop seems anticlimactic.
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