A $6.8 million upfront investment seems like a lot of capital to place on three individuals, but it actually isn’t in this case.
The three unnamed persons of interest employ over 1,000 individuals in the building, and a failure to retain this business would leave 300,000 square feet of unused space in the office tower.
To retain roughly half of their business, this project is set to completely renovate the surrounding sidewalks and install a putting green for the golf enthusiasts of the corporate world.
Since a recent landscaping study saw 7% higher rental rates for office buildings that have high-quality landscapes, AXA Towers might be able to raise rent and recuperate some of their initial costs.
That doesn’t seem to factor into their plan, however, and the building owners have decided to go with a different strategy. Towers Realty is seeking out a tax exemption from the industrial development agency for a sum totaling over $300,000.
Syracuse.com reports the company saying that without the tax credit, office rent returns in Syracuse “do not justify investments of this scale.”
Yet it looks like money for renovations is flowing just fine, as Fayetteville-Manlius will vote Tuesday for a $45.2 million renovation project for several school buildings.
It looks like Syracuse is going through a phase of development renaissance right now, especially if the school renovation vote passes.
For now, it is early goings for AXA Towers. Top dealmakers are likely buried in paperwork, perhaps literally seeing as 95% of corporate information is in paper documents.
Their future includes high hopes for a worthwhile return on investment and an optimistic expansion of renovation plans to $22 million. The money they are pouring into this series of projects could attract new employers to shore up the slightly precarious tenant situation they are facing today.