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Downtown Office Occupancy.

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#1 Austin55

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Posted 22 January 2016 - 01:04 AM

Falling Oil and Gas prices really hurting the downtown market. 

 

http://www.star-tele...le55899820.html



#2 Jeriat

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Posted 22 January 2016 - 03:22 AM

Guess it's time to find another industry...


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#3 renamerusk

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Posted 22 January 2016 - 09:03 AM

At least we can be thankful for Jetta! :)



#4 JBB

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Posted 22 January 2016 - 09:04 AM

Guess it's time to find another industry...


You really think prices won't recover at some point? I agree that adding more diverse industry is good, but oil and gas will bounce back.

#5 RD Milhollin

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Posted 22 January 2016 - 10:51 AM

Unfortunately low fossil fuel prices takes some of the wind out of the sails of alternative, sustainable energy sources. In the long run fossil fuel is a loser though, as supplies are inherently limited and people, governments, even non-representative ones, are pressured to find ways to alleviate the mess burning them leaves behind. There are of course some areas in which fossil fuels, particularly petroleum are irreplaceable in the foreseeable future; think jet fuel. But for many of the more mundane uses we on the ground burn coal, gas, and petroleum products, there are more rational and cleaner sources to draw from. This is of course not to say petroleum and coal don't have important uses; medicine, materials technology, containers, and many other areas of production benefit from these resources and would be hurt if they should become scarce in the future. Fort Worth should actively seek out companies to take advantages of these concepts  in future energy, medical research and manufacturing and materials sciences to make better use of the resources being mostly burned up in today's economy.



#6 Russ Graham

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Posted 22 January 2016 - 10:53 AM

Guess it's time to find another industry...

 

What's this about needing another industry?  Beef prices are solid!  Cowtown's in great shape!



#7 Jeriat

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Posted 22 January 2016 - 03:13 PM

 

Guess it's time to find another industry...


You really think prices won't recover at some point? I agree that adding more diverse industry is good, but oil and gas will bounce back.

 

 

Not saying they wont, but my point still stands.

I'm looking for ways to contribute and build, even if it is small... for the moment. 


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#8 Urbndwlr

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Posted 10 February 2016 - 01:38 PM

The headline of that article was negative but if you read more in this and the FWBP article, the speaker's forecast really wasn't THAT pessimistic. 

 

This energy downturn serves as a reminder to Fort Worth that we as a community need to constantly be recruiting and growing a wide variety of companies. 

 

Fort Worth has had some exciting news on growth in life sciences:  Smith & Nephew growing, relocating talent here, Galderma expanding, TCU/UNTHSC launching MD program, Moncrief Cancer & UT Southwestern launching/growing research and teaching/residency positions in Fort Worth.

And on the STEM front, UTA and UNT have been named Tier 1 research institutions - which is GREAT for increasing talent and R&D activities at both universities. 

Now, for Fort Worth - let's go attract and grow the commercial side of this to build the next generation of great local companies!

 

 

 

Falling Oil and Gas prices really hurting the downtown market. 

 

http://www.star-tele...le55899820.html



#9 renamerusk

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Posted 06 March 2017 - 12:22 PM

Here's an article in Fort Worth Business about the changing downtown office market:

 

http://www.fortworth...3068cdd5bb.html

 

 Good idea!.  A campaign to introduce or to have the developers from the eastern half of the metro area to Downtown.  Maybe there is hope that this will produce some results.  

 

I do like the current trend of more hospitality projects for the city.  Tourism may turn out to be a better and more stable economic engine for Downtown than office development. 



#10 renamerusk

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Posted 10 June 2017 - 11:51 AM

 

 Good idea!.  A campaign [Chamber/DTFWI]  to introduce or to have the developers from the eastern half of the metro area to Downtown.  Maybe there is hope that this will produce some results.  

 

 Hillwood moving to Downtown.

 

This is a positive development; but as long as Sundance Square absorbs new tenants to its properties, new speculative projects will be hampered. 

 

I hope that the recently announce campaign to attract new office development into Downtown is successful in attracting new, non-Sundance Square investment into Downtown. Otherwise, it seems that the campaign may simply aid in filling office space for Sundance Square Properties. 

 

To me, this why Jetta OperatingsTower is such a remarkable phenomenon and bold step; and why I hope for more developers to come in and challenge "Fortress Sundance".

 

Hillwood, please speculate in Downtown; it would be greatly appreciated; and a nice way to show some appreciation for Fort Worth's part in Alliance, your premier commercial development.

 

FWBP - http://www.fortworth...e9ea3369a5.html



#11 Austin55

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Posted 16 June 2017 - 03:28 PM

Click over to pages 12-19 for some details on the downtown office market

 

https://issuu.com/do...2016_state_of_d



#12 renamerusk

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Posted 16 June 2017 - 05:40 PM

Too shaken to read the fine print...what's the final verdict? :swg:



#13 Jeriat

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Posted 16 June 2017 - 09:41 PM

Like I said last year...

Guess it's time to find another industry...


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#14 Austin55

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Posted 24 June 2017 - 03:04 PM

GM Financial will soon be largest employer downtown.

 

http://www.star-tele...e157935444.html



#15 renamerusk

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Posted 24 June 2017 - 03:26 PM

GM Financial will soon be largest employer downtown.....

 

 

Like I said last year...
 

(1) Guess it's time to find another industry...

 

 

Two points -

 

- FWST acknowledges that Downtown has changed and is continuing to change

 

- The industry that Downtown is looking to find ought to be residential and tourism.



#16 rriojas71

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Posted 24 June 2017 - 06:04 PM

GM Financial will soon be largest employer downtown.....

 
 

Like I said last year...
 

(1) Guess it's time to find another industry...

 
Two points -
 
- FWST acknowledges that Downtown has changed and is continuing to change
 
- The industry that Downtown is looking to find ought to be residential and tourism.

Downtown needs jobs as well... residential and tourism only goes so far before it can't sustain itself without jobs for it's residents.

#17 John T Roberts

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Posted 24 June 2017 - 07:18 PM

This news that GM Financial will soon be the largest private employer is surprising.



#18 Austin55

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Posted 24 June 2017 - 07:45 PM

I don't think many people know they are even here. In fact, they are headquartered here. I've always wondered how they ended up in FW rather than Detroit.

#19 renamerusk

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Posted 24 June 2017 - 07:46 PM

 

Downtown needs jobs as well... residential and tourism only goes so far before it can't sustain itself without jobs for it's residents.

 

If that is true, then why do most employees commuter to jobs outside of their neighborhood?

 

The future jobs will become more and more digitally driven.  Service base jobs can be performed out of the home and with telecommunication. These are the kinds of micro jobs that can populate Downtown.  When tourism, conventions, hospitality in added to the mix, it will go a lot farther than we are allowing ourselves to believe.

 

I argue that remaking Downtown into a place characterized more by the two sectors - residential and tourism/entertainment will in itself be self sustaining when and if a critical mass of these sectors is reached.  Envisioning a different kind of central core that has evolved over the next 10 or so years will make it less vulnerable to business decisions of expansion and deflation.

 

In any event, the old model of manufacturing and concentrating workers in towers is fading away; and what competition there is for these sectors is very intense.  I would say that the outer suburbs are currently winning this competition.  However, a different Downtown may be the opportunity to win more of the competition.



#20 JBB

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Posted 24 June 2017 - 10:16 PM

I don't think many people know they are even here. In fact, they are headquartered here. I've always wondered how they ended up in FW rather than Detroit.


I was aware of their operation in south Arlington but I had no idea they had that many workers in FW.

#21 bailey

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Posted 25 June 2017 - 09:11 PM

GM Financial was created when GM bought AmeriCredit with the purpose of making it their captive finance company.  Americredit was a spinoff of URCARCO which was a Fort Worth company.  Americredit had their corporate office in downtown Fort Worth and their operations center split between downtown and a service center off 121.  They later moved their servicing operations to Arlington though some functions remain in downtown Fort Worth.



#22 johnfwd

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Posted 26 June 2017 - 06:00 AM

And I believe the predecessor of these as relates to auto financing was General Motors Acceptance Corporation (GMAC). 



#23 renamerusk

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Posted 26 June 2017 - 10:12 AM

The current debate is morphing into being more about an individual tenant and less about the overall issue surrounding DOO.  :swg:



#24 Austin55

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Posted 13 July 2017 - 08:48 PM

Bisnow - How Downtown Fort Worth’s Office Oversupply Could Help It Lure Big Tenants



#25 renamerusk

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Posted 09 August 2017 - 06:52 PM

All is not lost.  UMB Tower?

 

http://www.fortworth...259ce06cf4.html



#26 Austin55

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Posted 09 August 2017 - 08:50 PM

I don't know if it's been mentioned, but XTO has a presence in 777 as well. Completely forgot about that. Even more space to fill (but should be easier being class A)

"XTO Energy extended its 33k SF lease at 777 Main St in Fort Worth with F7 SSSM. Transwestern principal Whit Kelly repped the landlord."

Read more at: https://www.bisnow.c..._medium=Browser

Does anyone remember where the Frost banking branch was? Was it along the Commerce streets side of the first floor? It'd be nice to see that side given a makover like the Main St side.

#27 renamerusk

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Posted 18 December 2017 - 01:25 PM

Here is a timely (EDP) example of the problem that Fort Worth's core faces: Competition from its own outlying regions.  These are the exact white collar jobs that Downtown should be the first to get.  Downtown needs about 1m sq ft of speculative office space in the pipeline.  The city should be providing incentives for developers to build a high rise in Downtown. Instead, the incentives has been for 5-6 story buildings.  Even though it is positive news for Fort Worth, it would have been better if these jobs were coming to Downtown.

 

Alliance under Hillwood is a low rise project, whereas elsewhere, its goal seems to be signature towers.  Recall that the Chamber & City recently went on a mission to Dallas in an effort to persuade Dallas' developers to do more business in Downtown.  I think its time for the City to ask more from Hillwood regarding its goal to build Downtown. Hillwood owes a bit of loyalty to Downtown in light of the fact that its most prolific development has been the "farming" of North Fort Worth and reaping tremendous returns.  If the EDP is to mean anything, it is time to bring these developers to Downtown. It is time for a "RFP to Developers" Forum.

 

Fort Worth Business Press

http://www.fortworth...33d81ff98d.html



#28 johnfwd

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Posted 19 December 2017 - 09:31 AM

I agree wholeheartedly with this.  Downtown needs to attract more businesses to locate in Class A office buildings.  Now, I know you were not seriously intending the Fort Worth CBD to be completely transformed into a CTD (i.e., Central Tourism District)?  Maybe 60-40, or maybe 50-50?



#29 renamerusk

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Posted 19 December 2017 - 09:47 AM

....Now, I know you were not seriously intending the Fort Worth CBD to be completely transformed into a CTD (i.e., Central Tourism District)?  Maybe 60-40, or maybe 50-50?

 

 Yes, I am serious about Downtown becoming a vastly majority CTD (Hospitality,Tourism,Residential,Conferencing). 

 

In my opinion, businesses will not, given their proclivity, always invest in Downtown as the first option. What we find is that businesses continually seeking to eliminate/automate when possible or consolidate jobs elsewhere in pursuit of efficiency

 

Tourism, residential and hospitality are sectors that are long term solutions and sectors for Downtown that will not relocate and that the public sector can fund with incentives.  CTD is also a 24/7 activity while jobs in Downtown are 40 hour work week 9-5.

 

If anything, Hillwood's decision to bring 900 jobs to Alliance is proof that businesses are not gravitating to the Downtown as they did in the past and that Fort Worth has to do the things that will resuscitate Downtown.  Actually, a downtown filled with people 24/7 is very attractive to businesses and their employees.



#30 renamerusk

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Posted 29 June 2018 - 11:17 AM

D Magazine has an article on the rents inside the tower.

 

https://www.dmagazin...t-record-rents/

 

 

This bodes well for future office construction if the economy holds up.

 

 Soon after renderings and details for 640 Taylor was made public, I suggested that the highrise could easily had been an additional 10-storys and demand would be there.  The one thing that can be taken from the D-Magazine story profiling 640 Taylor is that there is actually a demand coming from Dallas firms who are looking for additional regional offices in the western sector of the region.  As a general principal,  firms are in search of Class A, smart buildings.

 

The combination of Dallas firms and firms from outside actually suggest that a 1-1.5m sf tower would indeed bode well in Downtown.  I think the NW quadrant of the Downtown or Panther Island are prime locations for new towers.



#31 tamtagon

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Posted 29 June 2018 - 11:28 AM

 

 

... suggest that a 1-1.5m sf tower would indeed bode well in Downtown.  I think the NW quadrant of the Downtown or Panther Island are prime locations for new towers.

 

 

I kinda think the airport rail connection will pull large scale office projects to the SE quadrant, convention center area before Panther Island begins to exert influence. I'm not so keen on losing the convention center arena, but I think there's a strong plan in place for that facility, resulting additional hotel rooms would also appeal to new office ventures.  



#32 renamerusk

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Posted 29 June 2018 - 11:44 AM

Even though there is good evidence to support what you think about Convention Area/A&M sector of Downtown, it just does not seem to be happening for whatever reason.  The ITC does not appear to be the TODcatalyst that one might have anticipated.

 

Just purely speculation, the sector of Downtown west of Sundance Square and east of Clear Fork is likely where the softest land values are now located.  Already, speculative residential projects are in the works for sector that is sandwiched desirably between Downtown Main and museums/west side arena (DA) districts. The development of more condos and PIP could make this niche in Downtown a fairly risk averse location for a speculative tower. 640 Taylor has probably opened the eyes of some speculative developers to the potential of this sector which leads me to think that a tower might conceivably happen here to take advantage of Panther Island, Downtown Main and the western districts.

 



#33 renamerusk

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Posted 29 June 2018 - 10:24 PM

Anyone know how common it is for a building to hit 80% occupany only months after opening??

 

 

This is real interesting.  Real close to the time the building opened, I had lunch with a friend in the real estate industry and I asked him what he thought about the building.  He said he was nervous because he thought that it wouldn't lease quickly and they took a big risk in putting so much space on the speculative market.

 

 The Westbrook Building (Sundance Square) reached 90% Occupancy May 2014,  soon after The Plaza opened in November 2013.

 

Let just say three, nearly four full decades when virtually nothing new was being built in Downtown had to create a healthy appetite for something new, smart and up to date. 

 

It was stated else where in the Forum that speculative projects in Downtown were being handicapped by landowners whose asking price was actually greater than comparable prices in Dallas; and yet other developers in the recent past have stated that piecing together tracts of land is quite difficult - its inexplicable.

 

Good news though, the rumor is that Austin and now Dallas venturists are looking with more interest at opportunity in Downtown/Fort Worth.



#34 renamerusk

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Posted 28 July 2018 - 11:28 AM

Rename, this is a complicated question...... I am not in the real estate business, so I can't be 100% certain on my answer. 

 

(1) I think those forum members who are in the real estate and development business would probably answer your question in a more satisfactory manner.  I think that the market studies have shown that 800k to 1m of speculative Class A space is way too much.  I also don't think any lender would finance such a project.  I was here in the early 1980's when I saw the largest amount of square feet being constructed at one time, and I can tell you at that time the developers way overbuilt.  Construction of those buildings left most of the older building stock vacant for quite some time and one of those office buildings was mothballed for about one year before the owners opened up the building for tenants.  

 

(2) I also think that Sundance Square purchasing the Petroleum Building was a smart move for several reasons.  One, XTO had already restored the building, so Sundance did not have to do any major construction work on this project.  I also think that they see the the restored buildings add to the appeal of Downtown, not the large high rises. 

 

(3) I also think this is another case for be careful for what you wish.  Since there is no local Downtown Historic District and/or so few of the Downtown buildings are designated as City of Fort Worth Historic and Cultural Landmarks, there is no legal protection of the buildings against demolition.  How would you feel if a developer purchased the block with the Fort Worth Club, the Fort Worth Club Tower and the properties of the Oil & Gas Building, the Service Life Garage, and the current Star-Telegram (Fair Dept. Store) buildings on them and then announced they were going to build a 1M+ sq. ft. tower with a new home of the Fort Worth Club?  But in order to do this, all of those properties were going to be demolished.  The highest designation level they have is Demolition Delay.  Even though there is plenty of land that is currently surface parking in Downtown, there is nothing that requires a developer to build there.  Then those historic skyscrapers are demolished and the new building is completed along with a large parking garage.  Many downtown tenants relocated to this new building, which leaves more undesignated historic skyscrapers nearly vacant.  Those building owners see that there would be more money to be made on a surface parking lot, and they demolish their historic skyscrapers. In this scenario, a lot of the character of the city would be lost. 

 

(4) I'm all for new construction downtown, but I want to see it occur on surface parking lots, not on property where historic buildings are now located.

 

Urbndwlr, I apologize for not answering your question.  A properly constructed high rise building with a brick veneer over metal stud exterior walls should last as long as the lifespan of the building.

 

 JTR, nor am I in or at real estate at the macro level.  However, at the micro level, I have some personal experience that has benefited my family through real estate and do give me some personal insight in the fundamentals of real estate.  

 

I will be addressing your reply as four points; but for now only point#1 -

 

Market studies may have shown that 800k-1m of speculative Class A Office Space (CAOS) was way too much at a time in the past, but at some time, perhaps now, market studies should be updated to reflect that:

 

 a. the absense of any sizeable chunk of new CAOS  has not be offered in 30 plus years and that the quality and the amenities of CAOS currently being offered is markedly different then it was in the 1980's

 

 b. there isn't observable evidence that financing of speculative office space is a deterrent issue if for instance you take other markets into account; and you should and could. Speculative office space is being produced not only in Dallas, but in Irving and the Frisco corridor.  As an observer, I fail to see what are the glass obstacles that are in place or seem to make Downtown Fort Worth untouchable.

 

c. Speculative CAOS will always create vacancies in existing stock; this is true of housing and retailing also plainly evident to even the casual observer by the vacancies of older houses and strip shopping centers.  Speculative CAOS created enormous vacancies in Dallas; so what is the fear of it happening in Fort Worth other than the fact that the existing stock in Downtown Fort Worth has been mainly under the ownership of two landlords who would be hurt by the offering of modern, state of the art CAOS.  It is also true that an overbuilt supply of office space is not something that only happened in Fort Worth. 

 

 So in summation of  the first or four points, today's market should be evaluated in the immediacy, not in the past.  640 Taylor has proven that an investor can succeed in Downtown Fort Worth if willing to speculate  and having already achieved nearly a 70% committal rate and growing that is compelling proof and supported by the speculative CAOS being filled by existing businesses (Whitley Penn) and regional businesses being reported on the record that there exists a desire by DFW companies to be in Fort Worth as well as in Dallas. Clearly, these business are looking for comparable quality space in both cities.  Today, the hospitality industry is speculating in a Fort Worth market; not because of past market studies, but on projections of a market that is under served and ripe with opportunity. It seems plausible that the office leasing sector would share similar confidence in Downtown to have in the pipeline new CAOS.

 

A range of 800k-1m might seem ambitious but it would be the kind of CAOS that is most sought after by a potential corporate relocation and businesses wanting to upgrade the efficiency of their office;  and it would probably come in a bit softer than its counterparts in Dallas and could make it easier to lease. 

 

The obstacle that has been frequently cited as the one reason that Downtown has been slow to develop is that land availability has been artificially priced beyond what it ought to be.  Whether this is an effort to manage/control growth Downtown by a very small group of individuals is difficult to prove even though the result seems to be fairly evident.



#35 renamerusk

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Posted 31 July 2018 - 10:25 AM

 

Rename, this is a complicated question...... I am not in the real estate business, so I can't be 100% certain on my answer. 

 

(1) I think those forum members who are in the real estate and development business would probably answer your question in a more satisfactory manner.  I think that the market studies have shown that 800k to 1m of speculative Class A space is way too much.  I also don't think any lender would finance such a project.  I was here in the early 1980's when I saw the largest amount of square feet being constructed at one time, and I can tell you at that time the developers way overbuilt.  Construction of those buildings left most of the older building stock vacant for quite some time and one of those office buildings was mothballed for about one year before the owners opened up the building for tenants.  

 

(2) I also think that Sundance Square purchasing the Petroleum Building was a smart move for several reasons.  One, XTO had already restored the building, so Sundance did not have to do any major construction work on this project.  I also think that they see the the restored buildings add to the appeal of Downtown, not the large high rises. 

 

(3) I also think this is another case for be careful for what you wish.  Since there is no local Downtown Historic District and/or so few of the Downtown buildings are designated as City of Fort Worth Historic and Cultural Landmarks, there is no legal protection of the buildings against demolition.  How would you feel if a developer purchased the block with the Fort Worth Club, the Fort Worth Club Tower and the properties of the Oil & Gas Building, the Service Life Garage, and the current Star-Telegram (Fair Dept. Store) buildings on them and then announced they were going to build a 1M+ sq. ft. tower with a new home of the Fort Worth Club?  But in order to do this, all of those properties were going to be demolished.  The highest designation level they have is Demolition Delay.  Even though there is plenty of land that is currently surface parking in Downtown, there is nothing that requires a developer to build there.  Then those historic skyscrapers are demolished and the new building is completed along with a large parking garage.  Many downtown tenants relocated to this new building, which leaves more undesignated historic skyscrapers nearly vacant.  Those building owners see that there would be more money to be made on a surface parking lot, and they demolish their historic skyscrapers. In this scenario, a lot of the character of the city would be lost. 

 

(4) I'm all for new construction downtown, but I want to see it occur on surface parking lots, not on property where historic buildings are now located.

 

Urbndwlr, I apologize for not answering your question.  A properly constructed high rise building with a brick veneer over metal stud exterior walls should last as long as the lifespan of the building.

 

 JTR, nor am I in or at real estate at the macro level.  However, at the micro level, I have some personal experience that has benefited my family through real estate and do give me some personal insight in the fundamentals of real estate. 

 

 It is possible and frequently the case that a smart move on the part of one interest can weaken the interest of another.  Suppose a goal is to increase the residential population Downtown and that it wanted to encourage affordable housing therein, then you might view the decision to simply do the easy thing of leasing already restored space as a short term decision. On the other hand and with some modest reconstruction, using the PB for housing, the permanent residents would generate comparable rental return and add to the sales that the traditional Downtown workforce contributes to all Downtown businesses, including SSq.  So economically, which is a greater/smarter return: Class C /restored space or rent/sales generated by households?

 

There are additional ways to add to the appeal of Downtown than restored buildings that, by the way, certainly do.  There is also the need for Downtown to appeal to companies that need the latest amenities and most efficient office space.  In the Downtown market, there should always be a "corporate relocation amount" of space available to attract outside business to Downtown.  It does not have to be multiple towers, but a single high rise tower, ready or in the pipeline, would be healthy for Downtown and would give the chamber something to sell to potential companies seeking relocation for whatever reason. 



#36 Urbndwlr

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Posted 31 July 2018 - 05:06 PM

GREAT questions and points, Rename.

 

I haven't been keeping up with speculative office development in Dallas and Plano however over most "normal" times in any economic cycle, after the 1980s, commercial lenders have required office buildings to be substantially preleased before funding the construction.  I think that is not the case for apartments and hotels, because their tenants are expected to just show up.    Also, Downtown FW Inc has, in its 10 year plan, made residential and hospitality growth priorities for additional supply, but not office space. 

On thing that probably contributes to this is the continued increasing density of office occupancy.  You can simply fit more people into the same buildings today than you could 20 or 30 years ago with new more open layouts. 

 

The key seems to be that you have a company with really strong resources and leadership who decides to build a building, for both their use with some additional space for their possible expansion and speculative space.  Jetta is the most recent example of this.  They occupy I think 3 floors, and through strong relationships (I suspect) with a couple of other companies, were able to get them to take space in the building.

Pier 1 around 2004 added a phenomenal building to Downtown as did Radio Shack.   Forget about RS business - their new building was not a cause of their demise. 

Pier 1 actually leveraged their building to bail themselves out when they sold it to Chesapeake and paid down their debt at a discount - AND got to stay in the building. 

 

I personally really do appreciate it when the company leaders make strong gestures like this but above all, these buildings help their recruiting talent. 



#37 renamerusk

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Posted 31 July 2018 - 10:50 PM

GREAT questions and points, Rename.

 

I haven't been keeping up with speculative office development in Dallas and Plano however over most "normal" times in any economic cycle, after the 1980s, commercial lenders have required office buildings to be substantially preleased before funding the construction.  I think that is not the case for apartments and hotels, because their tenants are expected to just show up. 

 

The key seems to be that you have a company with really strong resources and leadership who decides to build a building, for both their use with some additional space for their possible expansion and speculative space.  Jetta is the most recent example of this.  They occupy I think 3 floors, and through strong relationships (I suspect) with a couple of other companies, were able to get them to take space in the building........I personally really do appreciate it when the company leaders make strong gestures like this but above all, these buildings help their recruiting talent. 

 

 Jetta is the kind of civically mind company that set out as its goal to be a catalyst in Downtown.  I am so please to see their effort [640 Taylor] being so quickly rewarded.

 

 As to the requirement by lenders to require office buildings to be substantially pre-leased, it seems that individual(Jettat being an example) with strong resources could proposed a speculative office project and go out and recruit potential tenants which helps the project become a reality.  Hillwood (Perot) has the next supertall high rise  with site designated and design on the drawing board; and is actively reaching out to companies (nationally and internationally) to commit.  This strategy will eventually be successful. 

 

In Fort Worth, a similar strategy is said to be reckless or too risky.



#38 Austin55

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Posted 10 August 2018 - 01:13 PM

Interesting to see, Fort Worth lagging badly in office market.

 

5b6b113d3290f_leasing_submarkets.jpeg

 

https://www.bisnow.c...-activity-91602



#39 renamerusk

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Posted 10 August 2018 - 06:12 PM

Fort Worth and Dallas should not be tallied in the same market. 

 

This report ignores Downtown.  It is farsical and more importantly detrimental.

 

I challenge the notion that Fort Worth is lagging.

 

It is incumbent of Fort Worth government to officially notify publications that it should not included with statistics from Dallas.  Fort Worth does not share water with Dallas; it is a neighbor and not an "attachment".



#40 Dylan

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Posted 10 August 2018 - 08:28 PM

The Fort Worth metro division only has about 1/6 of all DFW office space despite having about 1/3 of DFW population.

 

The Fort Worth metro division has about 50 million square feet of office space, while the Dallas metro division has about 273 million square feet of office space.

 

https://www.dropbox....1Q2017.pdf?dl=0

 

Note: "Fort Worth suburban" on page 3 doesn't appear to include the "Mid-Cities." I took half of the office space for "Mid-Cities" on the last page (16 million), and added it to Fort Worth's total.


-Dylan


#41 Dylan

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Posted 10 August 2018 - 08:44 PM

Interesting to see, Fort Worth lagging badly in office market.

 

[IMAGE]

 

https://www.bisnow.c...-activity-91602

 

Fort Worth does have a severe shortage of office space, but these percentages are way too low for me to believe.


-Dylan


#42 Austin55

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Posted 14 August 2018 - 09:56 AM

D&M Auto Leasing moving from Grand Prairie into the former Whitley Penn building. Whitley Penn moved to Frost, and evidently Anthracite sweetened their deal by buying WP's old building too.

 

https://www.dallasne...town-fort-worth



#43 renamerusk

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Posted 14 August 2018 - 11:38 AM

D&M Auto Leasing moving from Grand Prairie into the former Whitley Penn building. Whitley Penn moved to Frost, and evidently Anthracite sweetened their deal by buying WP's old building

 

 What does it say when a relatively new office building (10-12 years) is losing a tenant to a brand new office building?

 

 My guess is that Fort Worth could certainly use more of the latest quality of Class A Office space from a building like 640 Taylor and that there is sustainable demand for it.



#44 mmmdan

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Posted 15 August 2018 - 10:18 AM

http://www.fortworth...ce26bdbf7f.html

 

From this article, it sounds like a company that grew faster than they were expecting and didn't want to build their own tower with the risk that they might not keep growing as fast as they have been.



#45 renamerusk

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Posted 15 August 2018 - 11:01 AM

It can be that both factors are working in tandem - fast growth and a demand for space.

 

At this time, there are likely other companies yet to reach the crossroads where growth forces them actually to seek new accommodations but can see it coming. This is when and why there should be a certain amount of speculative Class AA office space in the pipeline that companies can see and then commit to in advance 18-24 month.

 

Whitley Penn (WP)  wanted the great location of being in the core of Downtown along with the flexibility and technological and energy savings that new buildings provide; it is safe to assume that Class B office space does not prompt the same impulse to re-office that a state-of-the-art tower would do.

 

Downtown is a location that companies from other regional submarkets are looking to have an office presence as a way to expand in the Fort Worth/Tarrant County area.  It is also the location that companies new to Texas might want to consider if there is a Class AA space available or coming online in the near future.

 

At this time, I do believe that another speculative Class AA tower should be in the works providing a continuity and prompting more companies like WP to migrate to the Downtown core.



#46 renamerusk

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Posted 20 September 2018 - 01:43 PM

It can be that both factors are working in tandem - fast growth and a demand for space.

 

At this time, there are likely other companies yet to reach the crossroads where growth forces them actually to seek new accommodations but can see it coming. This is when and why there should be a certain amount of speculative Class AA office space in the pipeline that companies can see and then commit to in advance 18-24 month.

 

Downtown is a location that companies from other regional submarkets are looking to have an office presence as a way to expand in the Fort Worth/Tarrant County area.  It is also the location that companies new to Texas might want to consider if there is a Class AA space available or coming online in the near future.

 

At this time, I do believe that another speculative Class AA tower should be in the works providing a continuity and prompting more companies like WP to migrate to the Downtown core.

 

Head scratcher: The pre-leasing criteria doesn't apply everywhere, does it?

 

http://www.fortworth...93e781ba05.html



#47 Austin55

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Posted 25 September 2018 - 02:52 PM

 

From REBusiness Online – “The traditional drivers

of job and population growth have fueled new
construction and strong leasing velocity for office
properties in Dallas. But in Fort Worth, particularly
the downtown area, the growth is more visibly tied to
the live-work-play trend embodied by millennials and
other young members of the workforce. The health of
Fort Worth’s multifamily, restaurant and hotel markets
are all contributing to the growth of the office sector.
Office developers consider a number of factors
when constructing new space, much like any project.
However, location is key. As Fort Worth’s need for more
housing, dining and hotels has grown the walk-ability
factor has only increased in importance. As such, it’s
not only the employees that are drawn to properties
that are located within walking distance to residential
buildings and entertainment destinations. Developers
are also coveting these sites.”
 
 


#48 txbornviking

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Posted 25 September 2018 - 02:57 PM

 

 

From REBusiness Online – “The traditional drivers

of job and population growth have fueled new
construction and strong leasing velocity for office
properties in Dallas. But in Fort Worth, particularly
the downtown area, the growth is more visibly tied to
the live-work-play trend embodied by millennials and
other young members of the workforce. The health of
Fort Worth’s multifamily, restaurant and hotel markets
are all contributing to the growth of the office sector.
Office developers consider a number of factors
when constructing new space, much like any project.
However, location is key. As Fort Worth’s need for more
housing, dining and hotels has grown the walk-ability
factor has only increased in importance. As such, it’s
not only the employees that are drawn to properties
that are located within walking distance to residential
buildings and entertainment destinations. Developers
are also coveting these sites.”
 
 

 

 

love seeing walkability being touted

 

now to boost our transit game as well!



#49 renamerusk

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Posted 25 September 2018 - 04:47 PM

 

From REBusiness Online –

 

#1 -  “The traditional drivers of job and population growth have fueled new construction and strong leasing velocity for office

properties in Dallas. But in Fort Worth, particularly the downtown area, the growth is more visibly tied to the live-work-play trend embodied by millennials and other young members of the workforce. The health of Fort Worth’s multifamily, restaurant and hotel markets are all contributing to the growth of the office sector. 
 
#2 - Office developers consider a number of factors when constructing new space, much like any project. However, location is key. As Fort Worth’s need for more housing, dining and hotels has grown the walk-ability factor has only increased in importance. As such, it’s not only the employees that are drawn to properties that are located within walking distance to residential buildings and entertainment destinations. Developers
are also coveting these sites.”
 

 

 #1 -  Why is Fort Worth non traditional? How has it manage to defy conventional economics when it comes to its CBD? At the risk of sounding conspiratorial and for which I fully embrace, I do not understand the enormous separation that exists between the growth in Dallas and the growth in Fort Worth: same airport, same tax friendly environment, same weather, same in so many aspects, yet my head tells me something or someone has a thumb on how much Fort Worth will be allowed to grow.

 

 It is highly untrue that Dallas is walkable; and ludicrous to think Downtown Dallas is more walkable than Downtown Fort Worth.  Where is the evidence that the multifamily and restaurant markets have contributed to the office sector?  Who has more millennials, Dallas or Fort Worth? I would love to believe this, but it is difficult to believe in something that you can not tangibly see.  With all of the purported potential, except for the good blessing of 640 Taylor Street, there is nothing new in Downtown other then the less than 200k sf of 4-5 story Sundance Square. And when the continuation of the marketing existing Class B office space, it is met with cheers and high-fives.    Honestly, "Live and Play" sounds right of the playbook of Sundance Square and an acknowledgement of its unprecedented grip on the CDB.

 

#2 - And yes, most will able to agree that Downtown Fort Worth is as walkable as it gets around here; so why hasn't there been even a bang or lyet alone a boom by the eager and covetous developers' class?  I would literally die from joy if an out of town big time developer invested in Downtown Fort Worth.  With luck, it could be Amazon or some East Coast Developer(s).



#50 John T Roberts

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Posted 25 September 2018 - 07:46 PM

I will admit that I would like to have a couple of new high rise office buildings in Downtown.  However, I would dislike greatly if those new buildings caused the demolition of any of our historic skyscrapers.  We have very little historic protection in place for our current built environment, yet we have plenty of surface parking lots that once had buildings on them, just waiting for new buildings.  I realize that you can't save every building, but we have such a wonderful downtown.  We shouldn't sacrifice what we have for new skyscrapers.  There are also some people in this city that believe we should have development at any cost, and I say that it should be managed instead of letting it run rampant. 







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