In the current market, however, an unusual number of major buildings have been started by financially strong development companies without any tenant commitments at all.
Nevertheless, the willingness to start construction without tenant commitments has already produced one building -599 Lexington Avenue, at 53d Street - that is completed but still empty.
While approved office buildings proposed by the Hines Company, the Dreyfus Company and others remain unbuilt for lack of tenant commitments, three new buildings have opened this year in the county, including the 225,000-square-foot 601 Merritt 7, the final addition to an existing five-building office park on Route 7 in Norwalk.
"That depends on major tenant commitments," he said.
The Mills Corporation has letters of intent from CBS 2 Chicago Broadcast Center, Boggi Milano, Sisley, Andrew's Ties, Banana Republic, Rosa Mexicano, David Barton Gym and new concepts by Steve Lombardo, creator of Gibson's Steakhouse and Hugo's Frog Bar, and Steven Foster, creator of Lucky Strike Lanes in Hollywood as future tenant commitments.
Chicago's plans foundered when EarthLink and AT&T, the two firms bidding to build its network, demanded anchor-tenant commitments.
More commonly, landlords agree to offer a certain number of months of occupancy free in exchange for a tenant's commitment to stay in the building for several years.
You want to keep the ability to sell the apartment to someone else in the future, while the prospective tenant wants a commitment to rent the apartment for as long as she wants.
You want to maintain the ability to sell the apartment to someone else in the future, while your prospective tenant wants a commitment to rent the apartment for as long as she wants.
