Running Out Of Room: Frisco Almost Out Of Office Space
FRISCO (CBS 11 NEWS) - Business is booming in Frisco.
In the past year, Greatbatch, a medical device company with 3500 employees worldwide, moved its corporate headquarters here from Buffalo, New York.
Its founder created the first implantable pacemaker.
Daniel Kaiser, the firm's Chief Technology Officer says, "We know why people want to be here. It's the same reason we came: it's for the business climate, ability to travel in a global corporation, and the talent pool."
Greatbach is one of 12 businesses to relocate here last year.
And that's why Frisco is starting to feel the pinch of its success.
92-percent of the city's office space is leased.
The city had to help Greatbatch find some.
Mayor Maher Maso says there's very little space available with 25,000 square feet or more.
Maso says, "At this point in time, it would be challenging to put in a very large company that needs to move quickly."
So how can there be a lack of large office space in Frisco when there's so much vacant land?
Perhaps surprisingly, experts say the problem is financing.
James Gandy is President of the Frisco Economic Development Corporation.
He says banks are requiring developers to either lease out half the building or pay for half of it -- before construction.
Gandy says, "So if you had a $40 million project in an office building, they'd be required to put up $20 million in cash up front. That's a fairly significant capital raid on the front end of a spec office project."
Help is on the way.
Next month, the Hall Office Park is set to begin construction on an eight story building along the Tollway.
The city is offering incentives to developers to build here, and hopes it won't be long before office parks start sprouting on this empty land along the tollway -- making it easier for companies like Greatbatch to start calling Frisco home.
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