Interesting article I ran into:
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Felt like this was a good place to mention this article from TBJ. I don’t have access behind the paywall, but the new North Hills tower is getting over $40/square foot for office space. There’s a clear unmet demand for office space in this market, especially in urban environments (say what you will about NH but it’s now our region’s third largest “downtown”). I’m pretty sure the new Bloc 83 tower and Smoky Hollow Phase 2 will get over $40 as well. Time for projects like Nexus, Edison, and 400 Hillsborough to get their act together because, again, the demand is seemingly there even without a big anchor tenant.
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Would think that some of the developers setting on their hands would look around and see that buildings being built on spec as leased up before they are even finished. Wound seem that waiting for tenants to sign lease before starting a project seems to be a losing strategy when “build it and they will come” seems to be working great for others.
comment from IBJ report
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“When we have this kind of low vacancy, typically, historically we’d be building 6 or 7 percent of new product relative to the market. We’re only at 4 now,” he said. “Typically we’d be building twice that.”
But space is getting more costly and more difficult to build.
Wonder how much of the Difficult to build is city government.
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I’d agree, building on spec seems to work right now very well for those that do it.
However, waiting on an anchor tenant is still the safest move. If nothing else, developer will make money from the land if they just buy it and sell it off at some point in the future. Worse case scenario, no gain. Building on spec, worse case scenario, building never gets above 30% occupancy and becomes a major financial hit that will seriously affect a company. I wouldn’t expect a publicly traded company would build on spec usually.
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Oracle in Nashville or Raleigh?
Just a small tidbit.
The governor of TN will be meeting with Oracle execs in CA this week regarding a possible large office in Nashville that would employ 1,000 initially, and could potentially triple that. They would need 500,000 sq. ft. to begin with, and the ability to double that. Music City is apparently one of several possible options for this new major office.
I haven’t a recent update on where NC officials are in making their pitch. (I could see the new Penmarc stadium/office complex being sited as a great site for such a large move).
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The proposed new tower on Fayetteville Street is another option for a company like Oracle. That said, my experience with them is that they are typically a suburban market type company.
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Aren’t they looking in DT Nashville for that location? I don’t think they are looking at Cool Springs or Franklin there.
Is this wishful thinking or is there reason to believe we are involved? Quick google search is showing nothing but a vague hint from March that we might be a possibility.
They have a pretty big building down the street from us in Morrisville, but based on the parking lot, it looks like it may be mostly empty, or lightly staffed.
That’s why I said the word “typically”. They are typically a suburban market type company. That doesn’t mean that they always choose suburban options.
And that is why I said they are looking for a Downtown location in Nashville, because this doesn’t look like what they are “typically” looking for.
3 posts were merged into an existing topic: Status planned mixed/use development pipeline
600 jobs over next 5 years in Cary by Xerox including a center of excellence to develop new technologies
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18th Floor of PNC Tower. Right smack in downtown!
Pretty sweet jobs openings already in Raleigh, if you’re in to tech…
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Do they need a historian? 
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A historian? Well they are into content management… 
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Could someone please open a biotech company downtown for me?
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Biotech researcher, here. I can assure you loads of students and professors would beg and kill for a place like that.
…if only someone can just give them some damn funding.
(But I assume most people here won’t want to talk about the difficulty of bringing a biotech business alive and keeping it alive through its pre-product days are an entirely different issue, the challenges of FDA compliance and clearance vs approval, etc. etc., so I’ll get off my soapbox)
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Have a couple friends that work there. Toured their office last week, it’s pretty nice. They have some great views from the 18th floor.
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Glad you think so!
My company did work on that job.
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