LDS Church Plans Worry Some Downtown Businesses

None by KCPW

Expected Construction Has Some Looking to Move

(KCPW News) Tonight the LDS Church will release details of its massive development project downtown, which includes renovation of two malls and at least one office tower. Commercial office broker Mike Richmond says retailers are eager for a spot in the new malls, but the project has other businesses thinking twice about downtown:

"Tenants on South Temple and the north end of downtown are looking at all the construction expected in the next three to five years as a bit of a negative," says Richmond.

According to the latest Commerce CRG data, Richmond says availability of high-quality - or "Class A " - space downtown has now dropped to just 1-point-3 percent. Much of the pinch is due to the LDS Church emptying offices in preparation for the development. For businesses willing to weather the downtown construction, Richmond says older buildings may be the answer:

"Developers are coming in and acquiring older Class B and Class C buildings, to convert them with nicer finishes, mechanical and electrical systems and bring that space to the market quicker than it would take to develop a building from the ground up," says Richmond.

The LDS Church is expected to include new office space and housing in its 2-billion dollar development plans for downtown.

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