SAN ANTONIO | Projects and Construction

[texboy]

IKEA: City holds hope, but it's fading
By BRAD ROLLINS - Staff Reporter
Posted: Sunday, Jul 24, 2005 - 12:13:25 pm CDT




City leaders still hold out a inkling of hope that IKEA could choose San Marcos as its Central Texas home, but important indicators seem to suggest that the Swedish furniture giant has passed on the city.

For months, officials have courted the company with the argument that building its 260,000 to 350,000 square foot superstore here would put it within easy driving distance of both the Austin and San Antonio markets. Site selectors scouted available land along IH-35 and officials met with executives on more than one occasion.

But Mayor Susan Narvaiz, who says she last spoke to someone from IKEA in June, thinks the company has made it clear that it's likely to build in Round Rock and San Antonio.

"They continued talking to us because we were creative and offered them a way to think outside the box and consider us," the mayor said. "In the end, they kept going back to what their norm is. Their own formula seems to be an equation that we don't really fit."



IKEA typically builds within 45 minutes driving time of 1.5 million people. The Austin area's population is about 1.2 million; San Antonio's is about 1.6 million.

Narvaiz emphasized that the city hasn't received official notification nor has the company announced another location.

"They haven't made a final decision and I can't say for sure that they couldn't come back later and restart negotiations," she said.

A spokesman for the company said on Friday that IKEA hasn't decided for sure that its coming to the area at all. He wouldn't say if San Marcos is still being considered.

"We still haven't committed to the market itself let alone to a specific location. But we do have very specific site criteria and some locations might not necessarily fit into it," said Joseph Roth, the spokesperson.

Asked if he meant San Marcos, Roth said, "Until we actually commit to market and specific location, in theory, no one is actually ruled out because we haven't ruled anyone in. Obviously, there are some sites that appear more desirable or appropriate."

The company, which is adding five stores a year in an aggressive U.S. expansion, seeks lots of about 20 acres on major highways in metropolitan areas of at least two million people. The spokesperson said the company locates new stores within a 45 minute drive of its target market.

Since its start in a rural Swedish farming community in 1943, the company has carved an international niche as a low-frills outlet for affordable furniture and home products of distinctive design. The company is also credited with a culture that emphasizes frugality reflected, for instance, in their trademark practice of selling everything to-be-assembled.

[texboy]

IKEA: City holds hope, but it's fading
By BRAD ROLLINS - Staff Reporter
Posted: Sunday, Jul 24, 2005 - 12:13:25 pm CDT




City leaders still hold out a inkling of hope that IKEA could choose San Marcos as its Central Texas home, but important indicators seem to suggest that the Swedish furniture giant has passed on the city.

For months, officials have courted the company with the argument that building its 260,000 to 350,000 square foot superstore here would put it within easy driving distance of both the Austin and San Antonio markets. Site selectors scouted available land along IH-35 and officials met with executives on more than one occasion.

But Mayor Susan Narvaiz, who says she last spoke to someone from IKEA in June, thinks the company has made it clear that it's likely to build in Round Rock and San Antonio.


"They continued talking to us because we were creative and offered them a way to think outside the box and consider us," the mayor said. "In the end, they kept going back to what their norm is. Their own formula seems to be an equation that we don't really fit."



IKEA typically builds within 45 minutes driving time of 1.5 million people. The Austin area's population is about 1.2 million; San Antonio's is about 1.6 million.

Narvaiz emphasized that the city hasn't received official notification nor has the company announced another location.

"They haven't made a final decision and I can't say for sure that they couldn't come back later and restart negotiations," she said.

A spokesman for the company said on Friday that IKEA hasn't decided for sure that its coming to the area at all. He wouldn't say if San Marcos is still being considered.

"We still haven't committed to the market itself let alone to a specific location. But we do have very specific site criteria and some locations might not necessarily fit into it," said Joseph Roth, the spokesperson.

Asked if he meant San Marcos, Roth said, "Until we actually commit to market and specific location, in theory, no one is actually ruled out because we haven't ruled anyone in. Obviously, there are some sites that appear more desirable or appropriate."

The company, which is adding five stores a year in an aggressive U.S. expansion, seeks lots of about 20 acres on major highways in metropolitan areas of at least two million people. The spokesperson said the company locates new stores within a 45 minute drive of its target market.

Since its start in a rural Swedish farming community in 1943, the company has carved an international niche as a low-frills outlet for affordable furniture and home products of distinctive design. The company is also credited with a culture that emphasizes frugality reflected, for instance, in their trademark practice of selling everything to-be-assembled.

[Paul in S.A TX]

San Antonio is closing in on 2 million people and should surpass by 2010.

[jaga185]

Actually they dont have the metro closing in on 2 million til' about 2020, so according to studies and estimates, we still have a ways to go.

[DerekfrmSA]

Originally Posted by jaga185

Actually they dont have the metro closing in on 2 million til' about 2020, so according to studies and estimates, we still have a ways to go.

The metro population is currently at just over 1.8 million.

Have you seen the freakin' population growth n the far northside/far northwest/far west side and even the southside.

In 2000, the metro was just over 1.5 million, in 2004, that number was 1.8 million. That's about 300,000 thousand in 4 years. We'd be over 2 million come 2010.

And the entire 90's can't even touch San Antonio's retail growth in the last two years alone.

[DerekfrmSA]

The talk I hear is IKEA is building at Regal Hill.

[texboy]

thats what Ive hear too.

[jaga185]

Originally Posted by DerekfrmSA

The metro population is currently at just over 1.8 million.

Have you seen the freakin' population growth n the far northside/far northwest/far west side and even the southside.

In 2000, the metro was just over 1.5 million, in 2004, that number was 1.8 million. That's about 300,000 thousand in 4 years. We'd be over 2 million come 2010.

And the entire 90's can't even touch San Antonio's retail growth in the last two years alone.

You're probably right, I could be thinking of San Antonio proper, oh well, bad case of info.

[DerekfrmSA]

Jaga, think of it this way.

The census has us at just over 1.8 million.

With, let's say, a "conservative" net growth rate of 40,000 per year, that's 5 years it'll take San Antonio to hit 2 million, just over 2 million really.

That would be 2009 not 2020.

I think you were thinking city proper.

[jaga185]

Originally Posted by DerekfrmSA

Jaga, think of it this way.

The census has us at just over 1.8 million.

With, let's say, a "conservative" net growth rate of 40,000 per year, that's 5 years it'll take San Antonio to hit 2 million, just over 2 million really.

That would be 2009 not 2020.

I think you were thinking city proper.

I know, I figured as much. When I was talking about the bad info, I was referring to myself, in case you thought other wise.

[texboy]

Is it just me or do I feel that SA is kinda being left out of the condo building boom?!?! Look at Austin, Chicago, Dallas etc.. Im really confused on why SA is still being overlooked! When new business' start up here, like restaurants and new retail stores, more often than not they are overwhelmed with customers, bc there is such a need and a want in San Antonio for more choices and more options. Are developers just blind, or is there some stupid hidden statistic that I don't know about that is keeping potential developers of large condominium projects downtown at bay? I think its evident when huge retail outlets like The Shops and North Rim are going up and when the number of passengers at our airport keeps rising exponentially that some kind of economic boom is occuring. This year alone millions of sqft of retail space was added to our city, over 22,000 people moved to our city, several new non-stops were added at our airport. Am I the only one seeing this? Am I looking at this wrong? San Antonio seems to be primed for major condo and retail development downtown.

If it were me, and I had the money, I would be taking MAJOR advantage of this boom here by investing in a downtown that is already arguably the most vibrant downtown in the state, and possibly has more room to go up than any other city in Texas.

[Mopacs]

Originally Posted by texboy

Is it just me or do I feel that SA is kinda being left out of the condo building boom?!?! Look at Austin, Chicago, Dallas etc.. Im really confused on why SA is still being overlooked!

Yeah, I've been thinking the exact same thing recently, especially in light of all the new condo developments announced for Austin (including a 500 footer revealed today). If this trend continues around the country, then I am almost 100% certain SA will follow soon. Personally, I can't think of a better downtown in TX to actually live in, than San Antonio. The sales of condos atop the Convention Center Hotel will probably go a long way toward determining if there is a sufficient market for them.

[urban_encounter]

Originally Posted by texboy

Is it just me or do I feel that SA is kinda being left out of the condo building boom?!?! Look at Austin, Chicago, Dallas etc.. Im really confused on why SA is still being overlooked! When new business' start up here, like restaurants and new retail stores, more often than not they are overwhelmed with customers, bc there is such a need and a want in San Antonio for more choices and more options. Are developers just blind, or is there some stupid hidden statistic that I don't know about that is keeping potential developers of large condominium projects downtown at bay? I think its evident when huge retail outlets like The Shops and North Rim are going up and when the number of passengers at our airport keeps rising exponentially that some kind of economic boom is occuring. This year alone millions of sqft of retail space was added to our city, over 22,000 people moved to our city, several new non-stops were added at our airport. Am I the only one seeing this? Am I looking at this wrong? San Antonio seems to be primed for major condo and retail development downtown.

If it were me, and I had the money, I would be taking MAJOR advantage of this boom here by investing in a downtown that is already arguably the most vibrant downtown in the state, and possibly has more room to go up than any other city in Texas.

I'm not sure what the magic number would be for a financial return for developers would be for SA. IN Sacramento is is a minimum of $400 per square foot. In actuality there getting much more.

Developers have to be able to pull a certain dollar figure per square foot in order to make the project pencil out. That's taking into effect cost of land, construction etc. If residential units in Austin are starting around $250,000, I would imagine they can make it pencil out for SA.

I would think SA wont be far behind. Belive me Sac was watching San Diego, San Francisco and Portland get all the high rise condo activity on the West Coast. Now the flood gates have broken and the market is proving itself. (Selling out 280 condos in two days). Developers locally as well as from Denver, & San Diego have taken notice.

It will probably start with a hotel/residential mixed use project and the go from there. San Antonio would be great for residential highrises.

[starvinggryphon]

In 2000, the metro was just over 1.5 million, in 2004, that number was 1.8 million. That's about 300,000 thousand in 4 years. We'd be over 2 million come 2010.

Actually that happened because in 2003, the Census Bureau added 4 more counties to our MSA. The numbers were always there, just not a part of the metro population yet so who knows if we will actually "gain" enough new residents to top the 2 million mark by 2010. I think so, though.

[jaga185]

Originally Posted by urban_encounter

I'm not sure what the magic number would be for a financial return for developers would be for SA. IN Sacramento is is a minimum of $400 per square foot. In actuality there getting much more.

Developers have to be able to pull a certain dollar figure per square foot in order to make the project pencil out. That's taking into effect cost of land, construction etc. If residential units in Austin are starting around $250,000, I would imagine they can make it pencil out for SA.

I would think SA wont be far behind. Belive me Sac was watching San Diego, San Francisco and Portland get all the high rise condo activity on the West Coast. Now the flood gates have broken and the market is proving itself. (Selling out 280 condos in two days). Developers locally as well as from Denver, & San Diego have taken notice.

It will probably start with a hotel/residential mixed use project and the go from there. San Antonio would be great for residential highrises.

Wouldn't the convention hotel count as a hotel/residential mixed use project?

[JACKinBeantown]

San Antonio is experiencing the same thing Houston did in the 70's/80's... massive growth outward and multiple mini-downtown areas. This will only hurt the city as far as traffic congestion and smog are concerned. It's too bad. SA had a nice flavor that Houston doesn't have. But if they remain short sighted and don't push for more development downtown and figure out a rail-based rapid transit soon, things will get really ugly.

[jaga185]

I know what you mean, we are getting toll roads now (construction early '06), not even plans for rail-lines. But oh well, I'm not the mayor so I can't make much decisions. I can't even vote on anything either!, one more year .

[texboy]

Thats a start. Im hoping those condos will spur on other projects.

[urban_encounter]

Originally Posted by jaga185

Wouldn't the convention hotel count as a hotel/residential mixed use project?

If there are condos in the mix absolutely. Developers will be watching how great the demand is for those condos. If they sell well then there will problably be bigger and larger Condo towers in SA future.

[davinSA]

Wait a minute. San Antonio is experiencing a downtown condo boom. You are forgetting the older buildings that are being converted or have been converted to condos or apartments. No, we haven't seen the proposed "new" condo towers in Austin, but I am sure that concept is on its way, only I hope not too much of a dramatic change in the skyline. Again, not to look like just any other American city.

Recent downtown buildings converted to condos:

Old Frost Brothers Building
South Texas Bank Building ( in process )
Neisner Building ( in process )
Exchange Building
Maverick Building
Cadillac Lofts

New construction of downtown condos:


Andalusia Condominiums
South End Condominiums
King William Condominiums
Piazza San Lorenzo Condo Towers ( in process )

Let's not forget:
Majestic Tower Apartments
Brady Building Tower Apartments


and of course the Convention Center Hotel Condos

Research indicates there is alot more room for absorption in the urban living dwellings department.