Highwoods building a ton of stuff in Nashville. Even a ‘Highwood Office Park’.
1 Like
No developer is going to take a chance to build 40 stories - there is a lot more 20 story buildings coming out of the ground. The city already has plenty of square footage to support the small demand.
Any big fortune 500 company is going to choose RTP over urban office space. Developers must get their funding equity and debt prior to breaking ground so there is very little chances to no chances that developers will put their own money into the deals without a capital partner or bank. It will be a long time before you see any high rises reaching 40.
Why would “any Fortune 500 company…” pick RTP over Downtown?
2 Likes
I work for a Fortune 500 company and we moved our office from Morrisville to Wade Park last year. Be careful with your assumptions…
3 Likes
They would pick downtown as they re-think their real estate strategies.
Increasing numbers of companies are either abandoning their one-person-one-seat occupancy models, or are exploring the idea. In union with these changing models is a focus on new experiences in their offices. These new experiences in combination with the new occupancy models results in a significantly reduced RE demand, and include context. Companies are also beginning to embrace WELL certified workplaces that award points for urban context amenities including transit stations, walkable grocers, etc.
Couple the new demand with the fact that the early in career and next generation worker is more city oriented than previous ones, and it’s really easy to image a fortune 500 company moving into a downtown location.
7 Likes
Oh for the old days when everyone had their own workspace, even if just their own cubical. I had two company’s where I worked from home 90+ % of time. At both had fully equipped private office that was just for me. I look at pictures of people at big teck companies working shoulder to shoulder at tables in big open spaces and all I can think of is pictures of 1800’s sweat shops.! 
2 Likes
Doesn’t Highwoods have a residential development outfit? A mix-use residential tower would fit well here–maybe 2 to 4 floors of flexible office space.
Didn’t some article earlier this year mentioned they were going to develop something in downtown likely residential likely on 300 block of Hargett St? Why would it work there but not here beside the bus station?
1 Like
The narrative that I’m hearing is “don’t commute to compute”. People in many roles in many companies have proven their effectiveness remotely. Those people don’t need to come to an office and sit shoulder to shoulder in an open plan to do work that they can do at home.
Offices are are shifting to be more about different collaboration experiences, both formal and informal, both small and large in size.
1 Like
in the mid 90s the state of nc gave my dad a laptop and phone line to hook up at home so he wouldnt have to go into the office late at night if there was a problemo. if work from home/meet for lunch/workout with client, etc., can be extrapolated to todays numbers i think thats a good thing whether a commute by car, bus or e-bike.
2 Likes
I’m dusting off this thread. A birdie told me there has been some activity on this project by Highwoods. They have a national development partner to build a resi tower and are just waiting for rates to drop before kicking things off. Also heard today that the fed, while not dropping rates now, plan to drop rates 3 times later this year.
So, things are looking up! Stay tuned!
25 Likes
I hope it’s 5 over 1 apartments! It’ll fit in so well and barely cast more shadows. Also hope they have a small gravel garden to commemorate the historic gravel lot that it’s replacing (and thus destroying Raleigh’s charm and character).
9 Likes
My least favorite surface parking lot in all of downtown. Let’s fucking gooooooooooo
9 Likes
Did they happen to say if it will be apartments or condos?
Apartments unfortunately.
This property zoned for 20 or 40 stories?
I believe still just 20, insanely enough. I’d hope not, but if so - they better go for a rezone, no???
2 Likes
Not to rain on the parade, but 3 rates drops seems very unlikely in 2024 unless something breaks in the financial plumbing and triggers a recession. Doesn’t mean they won’t come down a bit so maybe that will still be enough for this project. Good info regardless!
3 Likes
Isnt there something going on where basically every condo development gets caught up in litigation between the developer and owners at around the 9 year mark? Something like claims about construction defects have to initiate litigation by the 10 year mark.
The standard way around this is to build as apartments, rent out for 10 years, and then convert to condos. That way any defects can be addressed and/or bundled into the cost, and the burden borne by the association rather than the developer.
8 Likes
Powell’s statements yesterday also indicated it wouldn’t be anytime soon unfortunately.
2 Likes
Who’s Powell the highwoods president?