Commercial real estate struggles continue

I largely agree with this. Companies aren’t very good at measuring productivity of staff. There are ways to do it, but in the past it is deemed as hard or unpleasant.

I can see how it may be a disadvantage for new or younger employees getting up to speed and developing a network at work. But I think these are things that can be overcome.

 

Yes. Not everything is black and white; up or down. Organizations need all types, including the cream with the whey (or corn if that’s your thing).

 

PPD owned it. (Well parent company at the end)
My understanding is the city got it for a song and can rent out half of the upper floors.

 

you could do a quick look at the property appraiser office and see sales price and the real estate taxes before the sale and then zero that income out in perpetuity to see what the real cost to the city is. It isn't just the purchase price, it's the 100 years worth of taxes that compound the price exponentially. Politicians won't ever tell you that part of the cost

 

Sure. I get that. But i think this is more of an investment. My guess is the city makes a killing off of renting the unused (riverfront) floors and the rent/sale of their old building several blocks away. They also got a large multi story parking deck in the deal which is now a public deck and revenue stream. This parking deck is right near the new Live Oak Pavilion which is a Live Nation amphitheater with major concerts all the time. (Parking in our downtown has become a commodity as it has exploded in growth).
This deck alone being the closest to the amphitheater is a huge get for the city I imagine

 

Let's not forget how many people got fired for refusing the clot-shot... and small businesses that never came back. All those people never returned like they should have... But the Biden/Harris economy is going strong... not.

My good friend and ex-girlfriend works from home, and she works for a bank in commercial real estate. All of her co-workers work from home.

 

If there was a killing to be made off the asset, they wouldn't have sold the building or a private company would ahve bought it. Public is usually either the buyer of last resort or the one willing to pay more than anyone else. If they paid more than others, there is a reason others weren't willing to pay as much and private enterprise is almost always the better arbiter of the value. I'm sure that all of the benefits were highly promoted and the downside was not discussed or quantified. just my experience having been around these types of transactions before.

 

They obtained it for $55M below the appraised value and can now sell multiple spread out buildings. This was the first time city operations will be consolidated into one building.

The value of multiple small buildings coupled with the rent and parking revenues made this a no brainer imo.

Our city has developed an amazing world class downtown over my two plus decades here and they seem to make the right move more often than not... and made this deal with no tax impact on the citizens.

Win/win.

 

Seems like a win-win for your city, tilly.

 

The moment it came off the tax rolls it became an impact to the taxpayers. Gubmnt offices shouldn't be in the best real estate in the city. I'm sure the upside is well documented and the downside buried. It is not unusual. Congrats on having a great waterfront. But if it is so great, why would anyone sell for $55m below the appraised value? Were there multiple appraisals or just one?

 

The tax is probably an equal swap as the consolidation opens up multiple buildings downtown to now go ON the tax rolls. The city will sell those buildings. i think this was about consolidation and opportunity.

As for your appraisal question, I honestly can not answer that

 

Commercial property has always been bust or boom. Wouldn’t be surprised to the city bulldoze a bunch of smaller stuff and slowly move it. Blight stays blighted without a dozer