Developers with KDC, the master developer of CityLine, have planned for additional apartments amid uncertainty in the office real estate market with the expectation that more foot traffic will boost local restaurants and retail.
Cody Gibbs, director of Market Analytics at CoStar, a real estate information company, said a mix of uses, including a supply of residences, helps support local businesses in the area.
“This more-reliable foot traffic is essential for retail owners and operators, as it can cater to the working population during the day and the residential population at night,” Gibbs said.
Two-minute impact
Walt Mountford, executive vice president of development at KDC, said at the July 8 council meeting the initial plan to build out CityLine’s eastern portions was similar to that of the western areas, which include large corporate office buildings, ground-level retail and apartments. An uptick in hybrid work schedules has made financing future office projects—similar to the core of what is built at CityLine—difficult.
“We don’t know when the new office market will come back,” Mountford said. “If we continue to [go for] office, it almost makes us appear that we don’t know what the market can bear.”
Additionally, City Manager Don Magner said the updated vision with more residences could help the city recruit additional employers to CityLine with a supply of nearby housing for employees.
“They want their employees to be able to live, work and be able to play all on the same campus, and right now that’s a concern,” Magner said.
Digging deeper
Not everyone is on the same page about the future build-out plan for CityLine.
Former mayor Paul Voelker said he does not think building more apartment buildings allows for reuse of land because it is difficult to convert old apartments into anything else.
He added that he would like to see city staff consider attracting entertainment options, such as a bowling alley or music venue, that could help provide more consistent foot traffic for local shops.
Ridham Bhatt, owner of The Brass Tap in CityLine, said he would prefer more corporate tenants with a workforce occupying the office buildings regularly.
“It becomes evening and weekend business with residential,” Bhatt said. “With corporate, you have a good lunch rush hour and happy hour, and after work, people hang out late.”
Despite an allowance for more apartments, Magner said the city remains committed to finding corporate tenants in CityLine, adding that the additional housing could bolster recruitment efforts.
“I’m certain that if we’re successful, and we have a viable project, that we can work with KDC to have that office constructed instead of an apartment building,” Magner said. “If that opportunity presents itself, working with KDC, we’ll be in a good position to execute on it.”
The takeaway
Mountford said the developers at KDC and 3Edgewood are hopeful additional residences will help fill vacant retail and restaurant areas, while supporting existing businesses.
Bhatt would prefer to see a mix of corporate and residential tenants added.
“Consistency will come if they bring corporate offices there,” Bhatt said.
