This move does not affect that market much at all, since the market for new development is in Class A buildings, and the buildings Wells is moving from are Class B and C buildings. The market for B and C space will probably relax some, yes, but the A space will remain as tight as ever, and if anything will become a hotter commodity. Prices for new construction make the average cost/SF higher (rent or own). ALso, buildings within downtown have been selling for higher prices than ever and rates have been increasing lately. Coupled with tightening supply, this is the formula developers seem to look for when considering speculating on new office space.mplsjaromir wrote:I think it's safe to say there will not be a major office tower built anytime soon. Not that anyone was clamoring to do so anyway.
Besides, our good friend RetiredBanker is telling us otherwise in regards to new major projects in the pipeline.