[Makid]

Originally Posted by delts145

Why would Patrinely and PRI's Tower 8 be in competition? Isn't their tenant focus completely different? Also, if my memory serves me correctly, doesn't Patrinely already have an intent of committment from a major tenant for phase I? Makid, anyone care to share your thoughts or stats on the matter? Also, opinion on Millennium Tower nixed by Tower 8?

It would seem to me that the tariff war and or the construction crew shortages are by far the most relevant obstacles at this point.

Patrinely had/has Utah SIMS for roughly 20% of Phase 1. But, when I looked at their website, it has them opening in the fall of 2019. http://utahsimscenter.com/index.html

The site linked to last night regarding leasing of the 650 Main building says the building is completed in 2020. The Utah SIMS site has had the 2019 date for the last 18 months but the leasing site has only been up for the last 6 months with the 2020 date.

I will say that in the current market, Tower 8 and 650 Main (Patrinely) as well as the Suburban office market are competing against each other as the primary driving force for office growth is Technology/IT Companies. That isn't to say that there is demand in other sectors.

In my looking around last night, I did find a leasing agent that had current numbers for 111 Main. It looks like there is only 3900 sq ft of space left available. This does help to explain the push for Tower 8. It should also limit the possible of conflict between Tower 8 and Patrinely even just slightly.

Held however is a different story. Their makeup is what makes them more unique and should help them to progress and get off the ground easier. They are primarily a hotel/commercial building with some residential on top. Their location should help them to recruit legal firms for the commercial space. The hotelier is a boutique class if I recall, so it also could be used in conjunction with people coming in from out of town for legal proceedings. I would expect that the Residential may also be purchased by some larger law firms for their clients or some who would want a near unobstructed view of the valley.

If the dates for the leasing of Patrinely are correct, by this time next year we should hopefully have Tower 8, Liberty Sky, 370 Millenium (Held), 650 Main (Patrinely), The Exchange, and Block 67 Phase 1 (11 Story Residential Building and 11 Story Hotel) all under construction. This doesn't include the possibility for 255 S State (RDA Property) that the proposals are due back the end of this month, nor the Paperbox property that should start demolition and construction later this year. I have left the CCH off the list only because it is moving slowly and may or may not be under construction. Core samples were taken and you can see the caps with cone/markers still on the plaza between the trees but nothing is showing on either the SL County upcoming agendas nor the SLC Planning Commission. The D4 with D1 overlay does require anything over 100' to go through CBDR so the CCH would need to go through the SLC Planning Commission still for approvals before they can begin to excavate the plaza. The Violin School (old Public Safety Building) and Regent Hotel are also omitted as we haven't seen or heard anything from Form Development in a while.

The nice thing about the increase in residential happening in and around downtown is that it is/has been more those that either work downtown (Goldman, legal firms, and other higher paying jobs) as well software developers that also work in other areas both North and South of the city. As more residential is built it further helps increase the chances of additional Tech Companies choosing to either locate or possibly even relocate to SLC.

On a good note, with the Unemployment numbers that were released yesterday Utah was Number 1 for Percentage of Job growth YoY again. The fastest growing segment was Construction, growing 6.2% and adding 6,200 jobs.

We also know that from the Census that for the first time in forever that Utah gained more people from Migration than from natural birth. These Migrations are helping to increase the population of SLC but are also helping to fill the Tech and Construction jobs.

With Construction jobs slowing in other areas of the Country, and them heating up here, we could see an influx of workers which could help to keep some costs down.

The tariffs for both the Steel and Wood shouldn't be too much so as to derail a project. The costs can be amortized into the project. If anything, for steel, it slow down the suburban office market as office rates would need to rise putting them closer to the downtown office rates. When it gets to between $2 and $3 between the 2 areas, it is hard for the suburban areas to compete.

Downtown has the amenities like living close to where you work and can offer transit passes where most suburban office parks cannot. Additionally, SLC can more easily assist developers looking for help to offset the impacts of the tariffs either through low interest loans, possible temporary tax reductions or even parking adjustments to assist with costs.