While many experts and analysts are saying that there is simply too much office space currently on the market, developer Scott Brusseau thinks that adding to the “glut” with “new, first-quality, state-of-the-art sustainable development” is the key to bringing commercial development back[1]. The president of Newport National Corporation just finished a 79,000-square-foot office complex in an area that is currently experiencing a glut of office space. Brusseau says that there is definitely not an overstock issue when it comes to the type of product that he is offering.
“It’s easy to generalize and say the market is overbuilt,” explained the developer, adding that if a tenant is not “discerning” then they will, indeed, find a plethora of options to choose from. However, Brusseau believes that the commercial development slow-down and the emphasis on the overstock of office space has actually led to a shortage in attractive office spaces that utilize green technology and the latest in engineering and aesthetic advances to make the space appealing. Not surprisingly, Brusseau also is responsible for the “only large office building completely in 2010 on a purely speculative basis” in San Diego. His decision to complete the building was based on low construction costs and potential problems with completion later thanks to water restrictions.
While some analysts believe that the current oversupply in Brusseau’s market will prevent his development from being a success, Brusseau says that he already has two leases awaiting signature. He believes he can have the entire building rented in two years. “It remains to be seen whether or not this type of effort is visionary or pioneering or unsupportable,” said a local commercial appraiser. To Brusseau, it is far simpler: “We thought it made sense to build a building,” he said.
[1] http://www.nctimes.com/business/article_c284ee9d-9c67-5672-a1c7-13906c96126e.html
