Case Study Prospect Hill

528 Words3 Pages
What do you think of Arthur Nelson’s strategy for Prospect Hill? I think it’s a great idea to build 400 Fifth Avenue. I feel location is everything and the location they are located at is the West side surrounding Boston, it has a growing rate of people because the cities surrounding it. Should The Nelson Companies go forward with the Hillside building, given the market condition? What would your decisions be concerning the amenities, the parking alternatives and the interest rate hedge? Yes, because yes the market is slowing but Hassett is not just building office space but a consummate full service office park. By 1988, business began to slow; many predicted that the mini computer industry faced consolidation, which would likely lead to lay-offs and a reduced need for office space. In the North office space is selling for $22 per square foot per year, in the South its was from $18.50 to $26.00 per square foot, and where they are planning to build 400 fifth Ave its $23.50 to $27. The west is right in the ballpark of the other two markets the advantage that the West has is that the area is expected to benefit greatly in the future from Newton/Wellesley’s. construction slowdown. Also no building in the West was schedule to open besides 400 Fifth Ave that year. The building would offer over a third of office space in the west market. One thing that separates this building from others is the amenities. Some of the operations were run at a breakeven basis, making the amenities a benefit for the employee and company. Some of the amenities provided were day care, parking, gym, and a center called the Spacebridge. Spacebridge building was an additional section that the building had. Providing corporate communication via satellite on a time-share basis to tenants of Prospect Hill. They would be able to make a profit of the amentias and also adding value to
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