The Star Building has been vacant so it's not producing income but, losing money. A weed lot for the next decade would save tens of millions unless they were to find tenants to foot the bill. Who is going to lease and put money into space with a demolition clause and in this market? Seems optimistic like sublet space being taken off market with cancelled hybrid reducing overall vacancies leading to an office building boom.
 
maestro said:
The Star Building has been vacant so it's not producing income but, losing money. A weed lot for the next decade would save tens of millions unless they were to find tenants to foot the bill. Who is going to lease and put money into space with a demolition clause and in this market? Seems optimistic like sublet space being taken off market with cancelled hybrid reducing overall vacancies leading to an office building boom.
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Exactly.
No tenant is going to foot the bill for renoing a decaying office building that hasn't had any TLC since well before Pinnacle bought the property (since the Star was going broke) to have to move out in less than 10 years. And Pinnacle isn't going to foot the bill to spruce up the place because that is just more sunk costs. I suspect they will demo this sooner rather than later - there's plenty of office space on Queens Quay just east of this location that has sat vacant - this is unlikely to be leased out any sooner.
 
ComptoirGeneral said:
Also I can't help but imagine what all those people who purchased south facing units in SkyTower are thinking this evening lol.
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They're all investors who don't live in the building so they don't give a shit. And this isn't going forward any time soon.
 
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