Posted Feb 16, 2016, 4:38 PM
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Vote for me in 2019!
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Join Date: Jun 2007
Location: Salt Lake City, UT
Posts: 4,803
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I too am not the biggest fan of the 3 shades of Grey, renderings for the new South Temple project. I do think that this will simply be the first of many more to come. There are prime locations available all along N. Temple. It would be nice when that super classy motel, just north of this new project, redevelops if they would provide an easement for this project to access N. Temple directly.
As for the Office Towers, I believe we have all anticipated that 151 will start to rise within a year of 111 opening. Even sooner than 1 year if it truly is 100% leased at opening. I predict construction of 151 will be going be June of 2017.
I think the pace of new office towers, as was mentioned in the article, will continue to out pace the traditional every 10 years mark. It comes down to percentages. When One Utah (Chase) was built, it increase the office space in downtown by a significant percentage, Wells Fargo did the same thing when it was built, particularly because it is so massive. Since the addition of those, when 222 opened it didn't have nearly the impact on new square footage, as a percentage of existing, and 111 will be exactly the same. When these open there isn't nearly the dramatic increase in square footage that needs to be filled as towers in the past, so it makes perfect sense that new towers will come along at a much quicker pace, particularly if they continue to be in the 20-25 story range.
This is what will result in a new tallest in the office tower realm. A 40 story building 10 years ago, would have been way to much new office space to add to the market and expect it to be absorbed in a time frame that investors would require. However with the addition of 222, 111 and 151, the likelihood of a taller structure increases by that much.
Stick with me here.
Lets say a new tallest at 40 stories has roughly the same square footage per floor as 222, which is about 22,000 sf, equaling 880,000 sf.
Introducing 880,000 sf of office space into the pre 222, 111, 151 market would have been massive. However introducing that much space after those three are fully occupied is much less of a total increase. Making it much easier to lease, if the economy continues to stay as robust as it currently is.
This is just an example, and I hope I explained it in a manner that made sense when reading it. If it didn't let me know and I have another route to explain it.
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