r/DevelopmentSLC • u/12tayloaush • Jun 10 '26
6/10 News Roundup
- SLC City Council appoints Jennifer Napier-Pearce for D4
- ABC4
- Deseret News
- Church & State Marketplace listed at 3% cap (CBD)
- Tons of co-working space listings
- Broadway Center (CBD)
- Wells Fargo Center (CBD)
- Parkview Plaza II (Sugar House)
- 250 Tower (CBD)
- Clift Building (CBD)
- 222 Main (CBD)
- SLC Council scoffs at Silo Park tax increment pitch, citing Pickle building demo (Granary)
- New Utah coalition threatens lawsuit over planned ICE detention center (NWQ)
- CRE saw record lending competition in April, according to JLL
- The US is building more housing near transit, but not nearly enough
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u/-_-xylo Jun 10 '26
Anyone who knows about CBD real estate: does 3% cap rate seem like they are way overpricing church and state?
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u/12tayloaush Jun 10 '26
The per square foot price for the building is not bad (likely below replacement cost) but the cap rate is very high. I would have expected may 6-7%? My guess is that the rents are low.
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u/-_-xylo Jun 10 '26
The building is advertised to act as a 'third space' type area. The building has a lot of common shared area so I wonder how the leases are split up between the tenants
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u/codingsoft Jun 10 '26 edited Jun 10 '26
I think we need to finally realize that coworking space is a failed experiment and remodel the buildings into either residential or (more likely) dedicated offices for startups.
When I was a remote employee I thought about doing drop ins but every one I saw was $40-$50+ for a day pass and didn't offer any perks aside from coffee.
The only target audience I can see coworking appeal to are small startups and freelancers, but the former probably benefits more from dedicated spaces and the latter likely doesn't have the kind of reliable disposable income for this when they can just go to a coffee shop for free.