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Originally Posted by youngregina
80 Million?!.... If they are going to spend 80 million dollars on an office tower, then I disagree with you^^^. They could easily just 'get it right' and set aside more room for retail at the base. I mean complete redesign of the lobby and surrounding space could mean big bucks for the Hill's considering more tenants would be renting space. Whereas the lobby is a white elephant of space, that will never give a return. Ever.
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For sure this will be $80 million if you count the land and tenant inprovements. I assure you the developer knows exactly what the value of street retail is versus tenant common areas. The developers know very well that it is very difficult to rent retail downtown. This will be particulary true of brand new class A space. At a cost of $400 psf they will need to get $32 net rent. There are plenty of vacant store fronts downtown that you could rent for around $15 net. On the other hand, they will build the cost of the common areas in to the rent of the office tenants who will expect, or perhaps even specified a nice, reasonably spacious lobby.
I am all for dowtown retail, but as I said, you have to make compromises. This is a vast improvement over the most other towers downtown that have minimal active uses at street level.