Quote:
Originally Posted by rlw777
Next cycle? Do you mean next year? They might as well not be going through the planning commission at all if they're planning on next cycle.
I think we can rule out Tishman building on spec. They are most likely just still shopping for an anchor tenant nothing too concerning here. You don't stop doing maintenance on a property out of speculation.
|
Yeah, absolutely.
Certainly if we were to go through a downturn much earlier than most expect, than Tishman Speyer would be well-positioned to be first out of the gates for next cycle.
However, most think that this cycle has some really decent legs still, and thus a favorable office demand outlook for the next few years, so base case I believe Tishman is fully planning to - as they've said earlier this year - start this one by year-end 2016. I wouldn't read too much into them resurfacing the parking lot, if it's potentially got (up to) another 12-15 months of revenue producing life to it. They are speaking with tenants right now, as they continue to over the coming months and quarters until they land their anchor(s). Now, if they were planning to start work by the end of this year - or even first part of next year, that would be very strange to redo the lot this summer.....but that was never the case......
I think this one really has the potential to be one of the absolute design gems of this boom/cycle. I think this is one of those cases in which the design of this office project will result in a true competitive advantage in the market for tenants - that's very much not always the case with new office towers.......but here I think it will really be at least one significant draw for multiple tenants that Tishman WILL land.....