Old Union Pacific Headquarters Lot

[CBJason]

I think that the new fire and police headquarters could go here plus the state bldg. Open up the state bldg to development.

Funny, I’ve been thinking the exact same thing! Then it should be more plausible for out of town developers to build a really tall mixed use building like the mayor wants on the state building site. The only thing, I wonder if that would be a waste of a location in what I thought was the CBD core?

[Garrett]

I think that the new fire and police headquarters could go here plus the state bldg. Open up the state bldg to development.

Funny, I’ve been thinking the exact same thing! Then it should be more plausible for out of town developers to build a really tall mixed use building like the mayor wants on the state building site. The only thing, I wonder if that would be a waste of a location in what I thought was the CBD core?

Eh, it's honestly a pretty office heavy part of the core. It's at least 3 blocks from any other residence or retail presence, so I think an office use is probably the most ideal. The surrounding blocks aren't the most lively to make me want a residential tower here, but that would definitely be the best use of the state office building.

[skip]

I think that the new fire and police headquarters could go here plus the state bldg. Open up the state bldg to development.

Funny, I’ve been thinking the exact same thing! Then it should be more plausible for out of town developers to build a really tall mixed use building like the mayor wants on the state building site. The only thing, I wonder if that would be a waste of a location in what I thought was the CBD core?

Eh, it's honestly a pretty office heavy part of the core. It's at least 3 blocks from any other residence or retail presence, so I think an office use is probably the most ideal. The surrounding blocks aren't the most lively to make me want a residential tower here, but that would definitely be the best use of the state office building.

This lot will only be a block away from the DUO once that project is complete

[Garrett]

Not huge news, but a poster on reddit said that there's now a fence on about half of the lot. DOGIS still shows it as city owned, so not sure what it could be for.

[iamjacobm]

Not huge news, but a poster on reddit said that there's now a fence on about half of the lot. DOGIS still shows it as city owned, so not sure what it could be for.

I think someone said this is going to be a staging area for streetcar work so maybe related to that.

[Brad]

Not huge news, but a poster on reddit said that there's now a fence on about half of the lot. DOGIS still shows it as city owned, so not sure what it could be for.

I think someone said this is going to be a staging area for streetcar work so maybe related to that.

Yeah, I believe Mayor Stothert said that on grow Omaha quite a while back.

[mistergutierrez]

[Doctor Fate]

If the proposal goes through and this lot goes back to UP, what is the most likely outcome for this lot? Does UP sell? Hire a thirty party to develop a mixed-use site? Let it sit?

[nebport5]

If the proposal goes through and this lot goes back to UP, what is the most likely outcome for this lot? Does UP sell? Hire a thirty party to develop a mixed-use site? Let it sit?

Good question. I’m doubtful of mixed use but that would be great. I’m also not optimistic of something skyline changing going here. HOC representatives should attend the city council meetings to insist the sale is contingent upon height minimums.

In all seriousness though, as much as we may want to see a 50 story Golden Spike tower, given the magnitude of UP, the merger and keeping the headquarters here we may have to be content with that alone.

I know it’s been said the current building is like 2/3s full, but does anyone have an idea how many employees currently work in the building?

[iamjacobm]

If the proposal goes through and this lot goes back to UP, what is the most likely outcome for this lot? Does UP sell? Hire a thirty party to develop a mixed-use site? Let it sit?

Good question. I’m doubtful of mixed use but that would be great. I’m also not optimistic of something skyline changing going here. HOC representatives should attend the city council meetings to insist the sale is contingent upon height minimums.

In all seriousness though, as much as we may want to see a 50 story Golden Spike tower, given the magnitude of UP, the merger and keeping the headquarters here we may have to be content with that alone.

I know it’s been said the current building is like 2/3s full, but does anyone have an idea how many employees currently work in the building?

No clue how full it is now but a while back they had 200k SF on the market to lease and that marketing material appears to be gone now.

[Linkin5]

If the proposal goes through and this lot goes back to UP, what is the most likely outcome for this lot? Does UP sell? Hire a thirty party to develop a mixed-use site? Let it sit?

Good question. I’m doubtful of mixed use but that would be great. I’m also not optimistic of something skyline changing going here. HOC representatives should attend the city council meetings to insist the sale is contingent upon height minimums.

In all seriousness though, as much as we may want to see a 50 story Golden Spike tower, given the magnitude of UP, the merger and keeping the headquarters here we may have to be content with that alone.

I know it’s been said the current building is like 2/3s full, but does anyone have an idea how many employees currently work in the building?

No clue how full it is now but a while back they had 200k SF on the market to lease and that marketing material appears to be gone now.

I wonder if they now need the space with their merger?

[ita]

If the proposal goes through and this lot goes back to UP, what is the most likely outcome for this lot? Does UP sell? Hire a thirty party to develop a mixed-use site? Let it sit?

Good question. I’m doubtful of mixed use but that would be great. I’m also not optimistic of something skyline changing going here. HOC representatives should attend the city council meetings to insist the sale is contingent upon height minimums.

In all seriousness though, as much as we may want to see a 50 story Golden Spike tower, given the magnitude of UP, the merger and keeping the headquarters here we may have to be content with that alone.

I know it’s been said the current building is like 2/3s full, but does anyone have an idea how many employees currently work in the building?

No clue how full it is now but a while back they had 200k SF on the market to lease and that marketing material appears to be gone now.

I wonder if they now need the space with their merger?

I was going to say that would be odd to move Norfolk's workforce here, but I just saw this (apologies if this was already discussed):

Norfolk Southern could sell its new headquarters in five years, company says in disclosure

The lease was supposed to start when they started occupation in 2021. After 5 years, NS can renew the lease, or not. NS and UP expect to close the merger in 2027. The title of the article is misleading because Invest Atlanta owns the building, not NS.

I think UP will keep its options open. NS could renew for say 5 years. So lease would expire in 2031. Under the terms of the buyback deal with the City, UP agrees to allow the City to use the site for staging for the streetcar project until 2027. So, UP will take over possession in 2027, by then the merger will be complete or in final stages, and they have a better plan for possible moving employees to Omaha. By 2031, UP moves NS workforce to Omaha in a new HQ complex.

[Garrett]

If the proposal goes through and this lot goes back to UP, what is the most likely outcome for this lot? Does UP sell? Hire a thirty party to develop a mixed-use site? Let it sit?

Good question. I’m doubtful of mixed use but that would be great. I’m also not optimistic of something skyline changing going here. HOC representatives should attend the city council meetings to insist the sale is contingent upon height minimums.

In all seriousness though, as much as we may want to see a 50 story Golden Spike tower, given the magnitude of UP, the merger and keeping the headquarters here we may have to be content with that alone.

I know it’s been said the current building is like 2/3s full, but does anyone have an idea how many employees currently work in the building?

No clue how full it is now but a while back they had 200k SF on the market to lease and that marketing material appears to be gone now.

I wonder if they now need the space with their merger?

I was going to say that would be odd to move Norfolk's workforce here, but I just saw this (apologies if this was already discussed):

Norfolk Southern could sell its new headquarters in five years, company says in disclosure

The lease was supposed to start when they started occupation in 2021. After 5 years, NS can renew the lease, or not. NS and UP expect to close the merger in 2027. The title of the article is misleading because Invest Atlanta owns the building, not NS.

I think UP will keep its options open. NS could renew for say 5 years. So lease would expire in 2031. Under the terms of the buyback deal with the City, UP agrees to allow the City to use the site for staging for the streetcar project until 2027. So, UP will take over possession in 2027, by then the merger will be complete or in final stages, and they have a better plan for possible moving employees to Omaha. By 2031, UP moves NS workforce to Omaha in a new HQ complex.

Good theory.

[Gobears27]

If Union Pacific builds a new headquarters building on this land what happens to the existing headquarters building? Do they hold onto it and lease out space? Do they sell the building? Wasn’t the state of Nebraska looking for a new office building downtown with more space?

[nebport5]

If Union Pacific builds a new headquarters building on this land what happens to the existing headquarters building? Do they hold onto it and lease out space? Do they sell the building? Wasn’t the state of Nebraska looking for a new office building downtown with more space?

I imagine they’d keep it. There’s a lot to sort out before anything would get built here. I can imagine a skywalk between two buildings at some point though I’d be shocked if anything with significant height gets built here in this scenario.

The State Office Building is only a fraction of the current headquarters with its 1 million-ish sqft. I like the way you’re thinking though and the s.o.b. plus the consolidation of some other city/county offices…perhaps, but I doubt it. It’s more likely UP may go back to leasing out space once they figure out their own space needs post merger. Hopefully(as rumored) the inhabitants of the s.o.b. will have their future space settled well before U.P. resolves absorbing Norfolk Southern employees.

[Garrett]

UP could definitely fill the niche that the Central Park towers did as far as a big piecemeal feasible office space goes.

[Louie]

UP could definitely fill the niche that the Central Park towers did as far as a big piecemeal feasible office space goes.

And it would be much more desirable office space than the Central Park Towers space.

[Brad]

It was pointed out earlier in this thread that the current UP tower is somewhere between 1/3 and 1/2 empty depending on who you talk to.

[Garrett]

It was pointed out earlier in this thread that the current UP tower is somewhere between 1/3 and 1/2 empty depending on who you talk to.

True, but they also currently have 1.1 million sqft. of space. The new Mutual tower is only going to be 800,000 sqft, which is smaller than their existing campus. It's not too crazy to me to imagine UP wanting new office style post covid while also trying to move out of a building that might not be aging super well for their needs.

[GenX]

I kinda secretly hope this turns into a d!ck measuring contest to see who can have the tallest/most impressive downtown HQ.

[Renovator2559]

I kinda secretly hope this turns into a d!ck measuring contest to see who can have the tallest/most impressive downtown HQ.

Nothing like projecting that authority right? Even as a regular person that are pretty large, the wince reaction is worth it on the other.

[NEDodger]

I kinda secretly hope this turns into a d!ck measuring contest to see who can have the tallest/most impressive downtown HQ.

I overtly hope it does - I just don’t know if this is the economic climate for it?

[skip]

I've got some good tea for this thread...

Berkshire is in discussions for this lot...

heard from very reliable source.

[Louie]

I've got some good tea for this thread...

Berkshire is in discussions for this lot...

heard from very reliable source.

I would be very curious to know what Berkshire would be wanting to do in the development space.

[Nebraska>Iowa]

I've got some good tea for this thread...

Berkshire is in discussions for this lot...

heard from very reliable source.

Solidifying Omaha as a long term location for the headquarters?

I realize they only have a few dozen employees, but maybe they build something that generates revenue, while stabilizing Omaha as the home?

[Linkin5]

I've got some good tea for this thread...

Berkshire is in discussions for this lot...

heard from very reliable source.

Solidifying Omaha as a long term location for the headquarters?

I realize they only have a few dozen employees, but maybe they build something that generates revenue, while stabilizing Omaha as the home?

Berkshire Hathaway Realty has way more employees than that and I know their offices used to be in one of the midtown Mutual buildings.

[BD PC Omaha]

I don't think skip was referring to HomeServices, I believe more likely the mothership.

[Garrett]

Berkshire going all in on Omaha right as the big man retires would be reassuring

[skip]

Berkshire going all in on Omaha right as the big man retires would be reassuring

that's the plan

[Linkin5]

Berkshire going all in on Omaha right as the big man retires would be reassuring

that's the plan

So if this HQ does not include any of the subsidiaries how many employees would this building be for realistically?

[ita]

I am not sure why UP would buy back the land only to resell to BH. Even if they made a couple million, it does not seem like it's worth the hassle. That means negotiating two contracts, going through two separate due diligence periods, etc. I am sure the source is reliable, but I don't know why UP would pay $7.3 million than facilitate a sale to a third party, BH. It does not seem like they do that kind of thing. Maybe they want to control what will go there if developed? They buy it then sell to BH with a some restrictions and covenants. Who knows.

If anything, I hope the BH rumor is true about wanting to build an HQ in Omaha. They can move BH Energy, the company the new president is coming from, from DSM to Omaha, consolidate their office space with Northern Natural Gas in a new building downtown, and have BH HQ there as well. I don't know though, maybe the new president is open to more real estate type investments, Buffett was never a fan.

[Bob from Omaha]

BH headquarters staff numbers less than 100. BH Energy is in DSM because it has huge operations in Iowa. I just can't see the new head of BH moving. Could it happen? Sure. But it makes zero economic sense. It also makes no business sense. In addition, the head of BH Energy is from Canada. He's got no ties to Omaha.

[nebport5]

I am not sure why UP would buy back the land only to resell to BH. Even if they made a couple million, it does not seem like it's worth the hassle. That means negotiating two contracts, going through two separate due diligence periods, etc. I am sure the source is reliable, but I don't know why UP would pay $7.3 million than facilitate a sale to a third party, BH. It does not seem like they do that kind of thing. Maybe they want to control what will go there if developed? They buy it then sell to BH with a some restrictions and covenants. Who knows.

If anything, I hope the BH rumor is true about wanting to build an HQ in Omaha. They can move BH Energy, the company the new president is coming from, from DSM to Omaha, consolidate their office space with Northern Natural Gas in a new building downtown, and have BH HQ there as well. I don't know though, maybe the new president is open to more real estate type investments, Buffett was never a fan.

Your logic here is sound but I’m reminded of the Lanoha rendering with the two towers on the parking garage.

Co-development?

[iamjacobm]

Not sure how many jobs they have in the building but to me the obvious BH company in a potential new build here would be National Indemnity. They are HQd in the OWH building now.

That or maybe BNSF wants to spy on the competition. /s

[Mr.Nuke]

I've got some good tea for this thread...

Berkshire is in discussions for this lot...

heard from very reliable source.

Berkshire going all in on Omaha right as the big man retires would be reassuring

that's the plan

It is a holding company... For years in their corporate videos for the annual shareholder meeting Buffett would "joke" about the overhead of the Omaha office and all 10 employees.

BH headquarters staff numbers less than 100.

Yeah it is like roughly 25...

[Linkin5]

I've got some good tea for this thread...

Berkshire is in discussions for this lot...

heard from very reliable source.

Berkshire going all in on Omaha right as the big man retires would be reassuring

that's the plan

It is a holding company... For years in their corporate videos for the annual shareholder meeting Buffett would "joke" about the overhead of the Omaha office and all 10 employees.

BH headquarters staff numbers less than 100.

Yeah it is like roughly 25...

This is what I don’t understand, it makes no sense unless he’s meaning subsidiary companies.

[Mr.Nuke]

This is what I don’t understand, it makes no sense unless he’s meaning subsidiary companies.

And that still doesn't make sense based off of 70 years of history either. The future "keeper" of the company lives on a farm in Illinois. The new CEO as Bob said is a Canadian guy that lives in Des Moines. The entire history and operation of BH has been to either outright buyout or buy large stakes in companies and basically for the most part let them do what they do. No one is getting relocated here.

[riceweb]

They *have* greatly increased the use of the brand name in recent years via their real estate wing. They might want to start leaning into the goodwill of the BH name in other businesses and more closely manage their subsidiaries. In general, there's really no point to the conglomerate model anymore.

[Bob from Omaha]

Yeah it is like roughly 25...

I'm including some bean counters not located in the headquarters but still in Omaha.

[Ryan j]

How about Berkshire subsidiary BNSF relocating to that site? Then you'd essentially have the headquarters for UP, Norfolk Southern and BNSF in a 2 block area? I'm kidding, but that would be fun!