Why rental apartments? Why not build office space? The answer is one of simple supply and demand and real life tax and real estate value consequences. Two separate economic impact studies both concluded the current office market in Providence is weak, with historically and consistently low absorption rates for office space. Restoring the building for office use would have a strong negative impact on surrounding office space in the city by flooding the supply and forcing rents down.
The apartment market in downtown Providence is very strong with current occupancy rates at approximately 97%. The redevelopment of 111 Westminster Street as largely residential units meets an immediate demand for housing downtown. Drawing from Cornish’s experience with nearly 200 apartments along Westminster Street, it is anticipated that these units will appeal to a diverse set of renters, from students to empty-nesters, young professionals and those moving into the downtown seeking a more urban lifestyle.
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