110 East: 23 story Tower by Stiles/Shorenstein

[atlrvr]

I wouldn't get too caught up in Loopnet reported occupancy.  I have no insight on this property, but I would expect there to be several signed Letter of Intents (LOI's) that could be best described as "contingent leases", and I would assume additional prospects beyond that as well.  That would be somewhat normal for a new construction project, though clearly build-to-suit deals do have official leases in-place (Duke and Robinson Bradshaw) much earlier.

While office demand is down a lot, every major office REIT (even those with sizeable San Fran holdings) are reporting 2nd Quarter leasing activity as positive.  NYC had it's best quarter in over 2 years.   You can see stock prices reflecting the view that office demand is "bottoming", with SL Green and Vornado (primarily NYC office REIT's) stock both up > 80% in the last 4 months (way ahead of broader market, but also still well below their historical highs).

Earnings calls are modestly bullish, with NYC probably the most bullish, but even Southeast REITS such as Cousins and Highwoods' execs pointing to signs of returning demand.

Midsize professional services companies are leading this returning demand.

All that said, the debt markets for office is pretty abysmal, and construction debt markets for office is effectively closed.  110 East isn't going to have much new competition for a long time. 

[DonkeyKong]

When is the building projected to be delivered?   Here is a quote from the Chicago Sun times about when they (TTX) expect to be in their new Charlotte HQ?  ""Powers said the company expects to take possession of its new location in June 2024."

Edited August 3, 2023 by DonkeyKong

[KJHburg]

1 hour ago, DonkeyKong said:

When is the building projected to be delivered?   Here is a quote from the Chicago Sun times about when they (TTX) expect to be in their new Charlotte HQ?  ""Powers said the company expects to take possession of its new location in June 2024."

on their website it says first quarter 2024 so the time would be great for them if they choose it. 

[Prodev]

3 hours ago, KJHburg said:

TTX the Chicago based rail car management company is right now looking for 75,000 sq ft of office space.  

They're going into The Line. Not sure if 75k is actually what they're taking, I just know that the Line is the space they're taking per someone who works for them in Chicago. 

[DJ8hep]

A quick capture this afternoon!

 

[QCxpat]

Today 10:30 a.m.

Edited August 16, 2023 by QCxpat

[DJ8hep]

My quick capture today!

[DJ8hep]

2nd Tower Crane has been removed!

[SydneyCarton]

There’s so much going on in SE that I’m losing track of things.

Isn’t this the project that will have a very nice, tiered residential tower as part of the development next door?  If so, where exactly will it be located?   Also, does anyone know the status of it?

P.S.: This is the residential tower I was thinking of.  I had the wrong project.  Does anyone know the status of it?

 

Edited August 23, 2023 by SydneyCarton

[Rufus]

It's the Portman project that is currently under construction. Probably a favorite project among many UP members. 

[SydneyCarton]

17 minutes ago, Rufus said:

It's the Portman project that is currently under construction. Probably a favorite project among many UP members. 

Thanks.  I eventually realized that it’s Portmans’ Hawkins St project.  I walked near there recently, but I didn’t make it by that site.  Is the residential building under construction?

[go_vertical]

It is and it's going up at a fairly brisk pace.  It's probably up to the seventh or eighth floor now.

[SydneyCarton]

43 minutes ago, go_vertical said:

It is and it's going up at a fairly brisk pace.  It's probably up to the seventh or eighth floor now.

That’s great news.  This is going to be a beautiful tower.

[KJHburg]

 

[Matthew.Brendan]

Why did they not build the upper office portion all the way across the parking deck? Is that going to be outdoor park space?

This amount of parking seems obscene for 13 floors of office plus retail on the ground floor.

I know it's beating a dead horse but this angle really puts it in perspective.

Would love to know the actual numbers of area sqft for parking versus office+retail.

[CLT Development]

32 minutes ago, Matthew.Brendan said:

Why did they not build the upper office portion all the way across the parking deck?

Because that would be larger than the optimal floor plate. 

[DJ8hep]

On 8/29/2023 at 5:20 PM, CLT Development said:

Because that would be larger than the optimal floor plate. 

Sometimes I imagine how wide that would look going all the way up…. 

Some photos today showing the cladding progress!

 

Edited August 31, 2023 by DJ8hep

[CLT-704]

14 hours ago, CLT Development said:

Because that would be larger than the optimal floor plate. 

Agreed.  It works for some buildings, such as the Gateway village buildings.  It requires a 'double core' meaning two sets of elevator banks, additional stairwells and sometimes double mechanical/electrical/data rooms.  

[KJHburg]

Interest from new to market tenants and local market tenants in this building but no leases to announce yet.

https://www.bizjournals.com/charlotte/news/2023/08/30/110-east-office-tower-south-end-leasing-2024-opens.html

""Construction started last January on Stiles Corp.'s and Shorenstein Properties' $186 million, 370,000-square-foot tower next to the East/West Station on the Lynx Blue Line. Jessica Brown, executive director at Cushman & Wakefield, said the tower topped out earlier this week, putting it on track for a March 2024 delivery.

Brown said she and Cushman & Wakefield's David Dorsch have been ramping up leasing efforts there over the last several months and are happy with the strong level of interest from tenants both in and out of the Charlotte market. Though no leases are yet finalized, Brown said they're in various stages of negotiations with potential tenants.  "It's picked up substantially, even in the past few weeks as far as new interest and new tours and even larger tours, and not just for this site," she said. "That’s a positive sign on the market taking a step forward."""

[RANYC]

5 hours ago, KJHburg said:

Interest from new to market tenants and local market tenants in this building but no leases to announce yet.

https://www.bizjournals.com/charlotte/news/2023/08/30/110-east-office-tower-south-end-leasing-2024-opens.html

""Construction started last January on Stiles Corp.'s and Shorenstein Properties' $186 million, 370,000-square-foot tower next to the East/West Station on the Lynx Blue Line. Jessica Brown, executive director at Cushman & Wakefield, said the tower topped out earlier this week, putting it on track for a March 2024 delivery.

Brown said she and Cushman & Wakefield's David Dorsch have been ramping up leasing efforts there over the last several months and are happy with the strong level of interest from tenants both in and out of the Charlotte market. Though no leases are yet finalized, Brown said they're in various stages of negotiations with potential tenants.  "It's picked up substantially, even in the past few weeks as far as new interest and new tours and even larger tours, and not just for this site," she said. "That’s a positive sign on the market taking a step forward."""

Well of course she would say that whether it's true or not.  Trying to create a sense of urgency.  The fact that this is a story should tell you that leasing interest isn't as hot as they'd like it to be.

[KJHburg]

5 minutes ago, RANYC said:

Well of course she would say that whether it's true or not.  Trying to create a sense of urgency.  The fact that this is a story should tell you that leasing interest isn't as hot as they'd like it to be.

Okay I am not that cynical.  There has been multiple stories recently that the office market is picking back up.  Sure some of these may be the same clients touring other buildings.  TTX is still out there though I think someone said it will go to the Line thats one example. 

[RANYC]

18 minutes ago, KJHburg said:

Okay I am not that cynical.  There has been multiple stories recently that the office market is picking back up.  Sure some of these may be the same clients touring other buildings.  TTX is still out there though I think someone said it will go to the Line thats one example. 

Yes, I'm sure it will be leased.  Do we have any names on the ground-floor retail spaces, the one feature sort of mitigating all that podium massing.

Edited August 31, 2023 by RANYC

[kermit]

^ Yea, rail trail adjacent retail has done better than most in Southend. This space will have the advantage of being on the rail trail AND being visible to drivers on East West AND have relatively obvious parking. I would be surprised if the retail component here does not do well.

[QCxpat]

Today 8:10 a.m.

Edited September 4, 2023 by QCxpat

[kermit]