3 Responses to “Office Development in the Triangle”

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  1. Anonymous

    Maybe it’s the remaining spottiness of the neighborhood that is holding back development — i.e. no one wants to build a brand new office building next to a hangout for transvestite prostitutes — however, that seems unlikely to be the case.

    In any event, I doubt the vacancy of the new 455 Mass building is very encouraging to developers. Any update on potential tenants in that building?

  2. fourthandeye

    @anon 12:51
    I don’t think it’s the prostitutes. They are a nuisance and the community needs to work to solve the problems they pose. But if people are willing to buy condos and live here 24/7 despite the “spottiness” of the neighborhood I don’t think that potential office tenants are deterred. Afterall it’s not like NoMa and the Capitol Riverfront are completely devoid of crime.

    The issue is almost certainly related to $$$ in some way shape or form.

  3. tig

    Suggest it's money. I'd guess Steuart & Wilkes got in quite a while ago at a much lower basis than today's prices. So their carry is less, and they can afford to find the right time.

    Additionally, JBG, Akridge, etc. are fee developers – they make most of their money off development fees. And if they bought into, say, NoMa later, they're doubly incentivized to get something, anything built to minimize their carry.