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Bank Of America Tower At 800 Capitol St.


barracuda

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My big concern with this one is the fact that Hines still has ZERO tenants for 609 Main.  I would imagine that there is race to the bottom on tenant rates between Skanska and Hines right now.

 

Skanska definitely has the better location but I would imagine that Hines is getting very aggressive on lease rates.  It would be quite impressive to see the Skanska folks sign a tenant before Hines....

 

Well, they've announced zero tenants. I have a feeling they may have more tenants than they've announced.

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Interesting that they would go forward with the pour, with concrete work prices still elevated from the current boom. Seems like a wiser choice would have been to wait the prices out a bit, considering the vertical build is on hold as well, no?  

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Interesting that they would go forward with the pour, with concrete work prices still elevated from the current boom. Seems like a wiser choice would have been to wait the prices out a bit, considering the vertical build is on hold as well, no?  

 

Concrete is slated to go up another 6% at the beginning of 2016. Then, depending on how the market is, there is still the chance it hikes another 3% per quarter through '16.

It won't be going back down. Now isn't a bad time - its busy, but oil prices tanking put a lot of things on hold. Once the play button is pressed again, we'll see even more hikes with minimal availability.

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Concrete is slated to go up another 6% at the beginning of 2016. Then, depending on how the market is, there is still the chance it hikes another 3% per quarter through '16.

It won't be going back down. Now isn't a bad time - its busy, but oil prices tanking put a lot of things on hold. Once the play button is pressed again, we'll see even more hikes with minimal availability.

 

Ah, that makes sense then. I have a new interest in construction / development and I'm trying to get a better understanding. Thanks for the explanation!

Edited by AREJAY
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This tower is 100% getting built.  There is no way Skanska would have moved forward with the mat pour on such a prime piece of real estate if they weren't certain the rest of the tower would be built.  Their development team is smart. They don't want chump change from parking contracts, they want big bucks from leases.  It's not a question of if, but when.  

 

I can also confirm that parking on half of the block will go to 8 and the rest to street level.  

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This tower is 100% getting built.  There is no way Skanska would have moved forward with the mat pour on such a prime piece of real estate if they weren't certain the rest of the tower would be built.  Their development team is smart. They don't want chump change from parking contracts, they want big bucks from leases.  It's not a question of if, but when.  

 

I can also confirm that parking on half of the block will go to 8 and the rest to street level.  

That's not true, they could absolutely pour the mat and still not be ready to move forward with the tower.  They have not started construction on the office segment yet, but pouring the foundation will show any interested tenants that Skanska is ready to move forward and help "push" tenants over the finish line.  It is hard for a tenant to committ to such a large expense without a little more skin from the landlord, I know of one that is very close and will likely make the decision to relocate to Capitol Tower.  I guess we will see.

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I guess I have a hard time seeing how the can split the garage from the tower. From the floor plans that cspwal show, they are so Intigrated that building up half looks impossible. Tunnel/steet level atrium straddles the footprint of both halves. And the elevator shafts for the garage are between the elevator shafts of the tower. Could they really build them as seperate cores? I don't think that this is like houston first building where the garage and the office/hotel building are built completely ape rarely.

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My guess about why building just part of the parking garage makes sense:  There is a lot of demand for parking in that part of downtown, but I imagine that they'd also like to have some dedicated in building parking for tenants without having to terminate a bunch of contracts in place.

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This tower is 100% getting built.  There is no way Skanska would have moved forward with the mat pour on such a prime piece of real estate if they weren't certain the rest of the tower would be built.  Their development team is smart. They don't want chump change from parking contracts, they want big bucks from leases.  It's not a question of if, but when.  

 

I can also confirm that parking on half of the block will go to 8 and the rest to street level.  

 

Definitely agree with this. Plus its going to take several months just to get to the point where they will be even close to the mid-rise portion. At that point they will have probably locked in a tenant.

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https://www.bisnow.com/houston/news/deal-sheet/this-weeks-houston-deal-sheet-49718

 

Skanska and subcontractor Baker Concrete Construction completed the mat foundation pour for the future Capitol Tower development Downtown. The two-day operation laid a 35k SF footprint and used 9,300 cubic yards of concrete and 2.4M pounds of rebar. Capitol Tower is one of only three buildings in the US to receive LEED Platinum v4 pre-certification. That sustainability was at play during the mat pour—60% of the cement needed was replaced with fly ash, a recycled product that will prevent 1 million pounds of CO2 emissions. Skanska will also complete the seven-story garage on the southern portion of the property and continue construction on the north side up to street level, but will not go vertical on its 35-story, 750k SF office tower until it locks in an anchor tenant.

Read more at: https://www.bisnow.com/houston/news/deal-sheet/this-weeks-houston-deal-sheet-49718?utm_source=CopyShare&utm_medium=Browser

Edited by DrLan34
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