Wednesday, July 31, 2019

Construction By Years End

601 Capitol Mall Mixed-use development
Downtown Sacramento will see more residential at 601 Capitol Mall starting by years end. Construction on an eight-story mixed-use project will have 162-units and more that 7,000SF of retail space. No cost has been given  by Shorenstien Properties.
601 Capitol Mall Mixed-use development

Wednesday, July 17, 2019

I Street Bridge Redesign Plans

Four design concepts are ready for public feedback for the new I Street bridge. There were originally nine designs in April but after receiving feedback, the number was narrowed down to four. KCRA report

The Thru concept is the least expensive option at $150 million

The Spring concept is priced at $180 million

The Solar Arch concept is $250 million with the most iconic structure

The Spring concept is also priced at $180 million

Friday, July 12, 2019

Tower 301 CEQA & Draft EIR

Proposed Tower 301 on Capitol Mall, 557' tall and 31 floors
The Draft Environmental Impact Report (EIR) for the Tower 301 Project (P18-078) located at 301 Capitol Mall is available to view and comment. The Comment Period is from July 3, 2019 to August 19, 2019.

http://www.cityofsacramento.org/Community-Development/Planning/Environmental/Impact-Reports
 
If you read the Colliers Sacramento Market Q2 2019 Office Market Report Final, it says, “Market vacancy rate is now at a 17 year low. Downtown tenants in Class-A high-rise floors facing $3.50/SF rents or higher will seriously consider relocation options in Natomas or other nearby suburban submarkets to cut costs or find more efficient space. ”I would guess this will make it harder fill the proposed Tower 301 where rents are quite a bit higher than 3.50/SF.

In my opinion, its tall but underwhelming. The proposed tower does not give any since of place or add anything unique to Capitol Mall. I had hoped a beautiful building would be proposed at the foot of Capitol Mall, and this is not it. The proposal would not have to be tall, just unique and attractive like the Emerald Tower across the street. Have you seen some of the other dynamic high-rises cities are getting lately when developers spend $500 million or less? For some reason Sacramento just does not inspire architects. 

Wednesday, July 03, 2019

Colliers Sacramento Office Snapshot: Q2 2019

Looks like another healthy quarter for Sacramento’s office market. Vacancy is at its lowest percentage since 2002 and the asking rate PSF/Month continues to rise. ColliersSacramento Research Department has the city looking very good.
Colliers Sacramento Office Snapshot: Q2 2019

Monday, June 24, 2019

“There Won't Be Any Slowdown In Sacramento Anytime Soon”

Colliers has made a big prediction about Sacramento’s future economic growth… they say there won’t be any slowdown in Sacramento anytime soon. I know right, how can they say this? Colliers sent out a Weekly Market Insights newsletter listing 7 reasons why. The Colliers crystal ball is ripe with opinions as well as some data to back it up.

Here are 7 reasons:

1. Alameda-based Penumbra is opening a 160,000 SF office in Roseville later this year, bringing 200 new jobs, with a possible second phase with 1,000 more jobs in the future
 

2. The State of California is running a $21B budget surplus and is building more than $4 billion worth of new office buildings in Downtown Sacramento

3. US Foods is building a 355K SF, $71.6M distribution center in McClellan Park and will bring up to 180 new jobs

4. Centene will be consolidating offices to its under construction 1.25M SF office campus in North Natomas with 3,000 new jobs
 

5.Healthcare continues to drive job growth throughout the region, adding thousands of jobs year after year with companies like Kaiser Permanente, Dignity Health, Adventist Health (just completed and occupied its new corporate headquarters), UC Davis, and Sutter Health all active in the medical office leasing and development

6.Bay Area companies and residents continue to flock to Sacramento seeking lower cost of living and better lease terms for both office and industrial real estate

7. Downtown Sacramento continues its encouraging pace of revitalization around Golden 1 Center and Sacramento is poised to get its second professional sports franchise with Sacramento Republic close to joining Major League Soccer, which will spur development at the Railyards where Kaiser is starting infrastructure work on its new hospital and a new office project and apartment development are close to starting construction.

Colliers also stated that we are currently celebrating 120 months of economic expansion and there have been few significant layoffs and office closures in Sacramento in recent months and the region continues to attract new companies and residents, experiencing healthy job growth in the 2-3% per year range and population growth around 1.5% a year.

Later this week the Colliers Q2 2019 Sacramento Office report will take a closer look at statistics and transactions.

Sign-up here to received interesting Sacramento news and market insights delivered to your inbox from Colliers.

Monday, June 10, 2019

Marshall/Hyatt Centric Hotel Brick & Terra Cotta

Marshall/Hyatt historic brick & terra cotta facades
Today the rectangular-shaped historic brick and terra cotta facades are left as the interior of the original structure has been removed. This is a unique project to preserve the historic exterior, keep an eye on how this all comes together.
 
Marshall/Hyatt historic brick & terra cotta facades

Marshall/Hyatt historic brick & terra cotta facades