When the market was flying high a little over a year ago, Bellevue-based Opus NW had big plans for the parcel, including 400,000 sf of office and retail in a pair of high rises. Since then, the developer has downsized its plans to a 150- to 200-room limited-service hotel as a first phase and then a mix of office and retail smaller in scale than the original.
Chris Burdette, a hotel broker with the Seattle office of Colliers International charged with finding an operator for Opus's proposed mid-scale, limited-service hotel, tells GlobeSt.com there have been no takers yet, but "we're still working with a couple of companies."
With the economy stuck in a bog, hoteliers throughout the country are suffering, he says, so Opus is proceeding with caution. "What we're looking at now is where the market has gone in the last six to eight months as far as occupancies. We're also looking at other projects in the market that have fallen by the wayside," says Burdette.
The broker says that Tacoma always been a tough market to pioneer. Opus apparently isn't the only developer that is reticent to break ground with a new hotel. "Even some of my major clients like Extended Stay American and Marriott are staying on the sidelines," says Burdette.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
