Quote:
Originally Posted by coyotetrickster
The public laws that constrain on our city's development (Prop M) will eventually create the market conditions for this tower to go up.
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Not without some guts on the part of the developer. Except possibly for a very brief period in the late 1990s, we haven't actually bumped up against the Prop. M limit since it was passed. Fortunately, Prop. M allows the unbuilt capacity to roll over from year to year so as the years go by without building anything, the limitation becomes less and less relevant. And with an office vacancy rate now exceeding 20%, it's hard to imagine we will actually need more space than Prop. M would allow, even in the next boom.
Hines or whoever ends up with the development rights (wouldn't surprise me at all if Hines were to put them on the market) will need the foresight to start building this building in anticipation of the next boom and to recognize that as the most desirable location in town, once it's built, it should have a leg up attracting tenants even if a substantial vacancy rate remains. But that's asking a lot of any developer.