New 8 story office building for East Memphis

[Bears]

http://www.commercialappeal.com/mca/busine...4886389,00.html

Land in East Memphis is becoming scarce so the only way to build is up. A while ago, a 6 story tower was announced for the last plot of available land in Ridgeway Center and now Highwood will try to out do them with an 8 story. Also, the Ridgeway Trace Apartments has been planned to be razed for a highrise with a Cheesecake Factory which will be developed by the Houston based Weingarten Realty Investors. With Class A vacancy in East Memphis at 3.6% and overall office vacancy at 6%, East Memphis will have many more office buildings planned for the future, at the expense of the real downtown.

[pjj4000]

I wouldn't say at the "expense" of the "real" downtown, since the commercial glory days of the old CBD passed decades ago. Downtown isn't the central area of the city these days, East Memphis is. Downtown is essentially on the edge of town, instead of a central district as is common in most major cities. It would make sense for more commercial growth to take place in East Memphis, because it is 15 minutes from anywhere, the true center of town. This is also why residential development makes since downtown, since it is essentially on the fringe of town. There will always be a commercial sector and hopefully an increasing retail sector downtown convienent to current and future residents, but the real center of commercial and retail activity is the actual center of the metro, East Memphis.

[Clobber]

As/if Arkansas starts pulling their weight, then there will be a shift back west, maybe not entirely back to downtown being the geographic center. I grant that a lot needs to occur to balance the region back toward the west (improved access to Arkansas, major projects locating on that side of the river, AR government focusing resources in helping east AR prospoer, etc).

[cdarr]

Not a bad looking building. I like the fact that it will be out on the street, rather than set back behind a parking lot.

[Bears]

I wouldn't say at the "expense" of the "real" downtown, since the commercial glory days of the old CBD passed decades ago. Downtown isn't the central area of the city these days, East Memphis is. Downtown is essentially on the edge of town, instead of a central district as is common in most major cities. It would make sense for more commercial growth to take place in East Memphis, because it is 15 minutes from anywhere, the true center of town. This is also why residential development makes since downtown, since it is essentially on the fringe of town. There will always be a commercial sector and hopefully an increasing retail sector downtown convienent to current and future residents, but the real center of commercial and retail activity is the actual center of the metro, East Memphis.

I actually agree with this 100%. Just trying to stir up a little debate on this forum because its basically been dead lately. There was an article about Suntrust considering leaving downtown in the next two years and move east (and after all that grief we went thru when they took down that nice NBC sign). I could see downtown's future in retail. Bass Pro along with Peabody Place and Main St. will hopefully make downtown on par with Wolfchase in terms of shoppers. Only, Downtown won't shut down until 5 AM Also, more retail and a 700 room hotel in the Sterick will make Memphis a more attractive convention location since downtown is where all the entertainment is. I wish the Cook Convention Center would actually get more national and international conventions and move all the Boat Shows and Antiques Road Show over to the Agricenter and DCC.

[Psalm 91]

With all the residential construction going on downtown which will create more of a demand for retail, why can't the retail attract offices? Will we ever see another office tower (taller than Peabody Place) go up downtown again?

I can live with residential skyscrapers downtown, but to totally dismiss downtown as far as office development is concerned, is wrong.

I can also live with East Memphis garnering more of the attention so office towers can be built.

[pjj4000]

I can live with residential skyscrapers downtown, but to totally dismiss downtown as far as office development is concerned, is wrong.

that is correct, downtown will never be completely out of the office picture, not only because of residents, but because of conventions, too. but I don't think it will ever be the dominant commercial/office center it once was, unless population patterns change enough to where it becomes more central again.

[cdarr]

With all the residential construction going on downtown which will create more of a demand for retail, why can't the retail attract offices? Will we ever see another office tower (taller than Peabody Place) go up downtown again?

They say "never say never", but I wouldn't expect any more office towers over 10-15 stories in downtown unless something dramatically changes in this market.

I think we've covered this some time ago in another thread, but it would be extremely difficult for a CEO to pay a premium of millions of extra dollars to build a downtown Memphis skyscraper - not when there is no tangible benefit to the company to be located there. Likewise, no speculative developer is going to risk the capital on a 30 story building when downtown rents don't command anything close the rates needed to bring a return on the investment.

On a more positive note, I can some 30-40 story residential tower and maybe a big hotel going up downtown during the 2010-2020 timeframe, after most of the prime land has been absorbed by the now-ubiquitous low-rise condo projects.

[Bears]

They say "never say never", but I wouldn't expect any more office towers over 10-15 stories in downtown unless something dramatically changes in this market.

I think we've covered this some time ago in another thread, but it would be extremely difficult for a CEO to pay a premium of millions of extra dollars to build a downtown Memphis skyscraper - not when there is no tangible benefit to the company to be located there. Likewise, no speculative developer is going to risk the capital on a 30 story building when downtown rents don't command anything close the rates needed to bring a return on the investment.

On a more positive note, I can some 30-40 story residential tower and maybe a big hotel going up downtown during the 2010-2020 timeframe, after most of the prime land has been absorbed by the now-ubiquitous low-rise condo projects.

Another thing East Memphis has going for it is that the parking is free. Downtown Memphis does have the cheapest parking in the nation (article) but its still not free.