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gsunnyg said:
I just don't get why they didn't move ahead with the 2nd tower, especially with such a strong rental market for the foreseeable future. It'll just end up costing more to dig and build separately.

I can see how projects like Hines Park Central made sense to do in phases at the time because of the uncertainty that was lingering in Calgary's economy and the niche demand with their high pricing/sq.ft. However, this project had started digging last year, right around the time it was clear that Calgary, along with the rest of the world economy would see strong growth from low rates. Not to mention how advantageous low rates would have been in maximizing profits.

Generally, in comparison to other Canadian cities, I noticed Calgary developers were very cautious last year to take advantage of historically low interest rates. Now we're seeing all these projects being proposed, which what seems like, every other week. The logic just baffles me.
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This two tower rental developer would be built one tower at time in Toronto, Montreal, Vancouver too, The majority stakeholders are usually smaller pension funds as methodical as the larger ones with real estate divisions. The towers being built in bunches elsewhere are condominiums and the condo market was dead at the start of the year. There's a fair amount of proposed supply that can get going within half a year . I'm not too worried with things heating up rapidly.
 
That is seldom for a underground commercial garage below an office complex. It's extremely rare for a developer to build 4 levels of residential parking underground for future phases in advance. There's absolutely no advantage. Adding 20% to the budget to save on a shoring wall down the road? Binding deadlines is less of a thing in residential construction.

It was more frequent during the abnormally hot office market 10 years ago. There was little uncertainly in leasing additional phases. Building the commercial parking in advance allowed developers to offer faster deadlines. It only happened in Calgary

Concord phase 2 ... nothing built
Avenue Westend 2... nothing built
Verve 2 ... capped but built separate from phase 1
West Village Towers 3 .... nothing built
Blvd phase 3 .... nothing built
Park Point 2 ... nothing built
One Park Central 2 ... excavation separate from phase 1
getting bored
 
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maestro said:
That is seldom for a underground commercial garage below an office complex. It's extremely rare for a developer to build 4 levels of residential parking underground for future phases in advance. There's absolutely no advantage. Adding 20% to the budget to save on a shoring wall down the road? Binding deadlines is less of a thing in residential construction.

It was more frequent during the abnormally hot office market 10 years ago. There was little uncertainly in leasing additional phases. Building the commercial parking in advance allowed developers to offer faster deadlines. It only happened in Calgary

Concord phase 2 ... nothing built
Avenue Westend 2... nothing built
Verve 2 ... capped but built separate from phase 1
West Village Towers 3 .... nothing built
Blvd phase 3 .... nothing built
Park Point 2 ... nothing built
One Park Central 2 ... excavation separate from phase 1
getting bored
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I could easily list as many projects that did the entire parkade / excavation at once, but I guess I'd get bored too....

You do know that developers are capitalists right? why spend more money to do things 2x when you can save money to build it all at once. Not to mention securing contracts and materials makes more sense to do at once than in phases when fluctuations in availability of materials and labour can massively affects costs and deliverables. It all comes down to confidence in the market and the ability to deliver a project quickly. You mention West Village, well they didn't do the 2 built towers in 2 separate excavations, they did it in one. The 3rd is obviously a factor of either confidence in the market, or more likely their commitment to other projects.
 
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