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Originally Posted by Dom"n"Converse
-Because of the hotel/tourism industry, downtown property owners want more compensation for their land than what it's worth. This makes it harder to turn a profit for businesses outside of hotels who aren't willing to pay the inflated prices.
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Quote:
Originally Posted by Keep-SA-Lame
All valid points, but really only the second I think is unique to SA. Most other cities have the same problems.
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Add to that point that wages in San Antonio are lower than average across most industries. That means there's less disposable income to pay high rent prices.
And on top of that, all but 2 of the cities large companies are based in the suburbs. Valero, Tesoro, USAA, KCI, NuStar, Rackspace, etc. are all the owners of very nicely manicured campuses in the suburbs. Unless they are ardent urbanists, why would their CEO's and other highly paid employees pay higher rents for downtown quarters and then still have to do deal with traffic.
The momentum has been on the suburbs' side for decades and part of San Antonio's competitive advantage in business are its lower land and labor costs, which are reinforced by the low-priced suburbs. Changing that mentality takes time, more so in a city like San Antonio which is notoriously risk-averse and weary of "new" concepts.
On the other hand to say that downtown is devoid of any activity would be a misstatement. There is more work planned at Pearl, University Hospital just finished construction, as did Steel House. Construction is moving along on the lofts on South Flores, SAC, the Tobin Center, the 2nd phase of 1221, the new Wyndham in River North, with many announced and unannounced projects down the pipeline. More companies are also starting to look at officing downtown which would provide more potential renters for both office and residential space.
Our city's unique economics of high downtown land prices + lower wages requires makes projects here more price sensitive than other areas. The momentum is building though, and there is a palpable change happening. Graham Weston has also pledged to push the issue. We just need to be patient and great things will be coming our way.