Thursday, January 16, 2020

Colliers Sacramento Office Snapshot: Q4 2019


Downtown continues to dominate with the highest net absorption of 184K/SF. The vacancy  rate has fallen to its lowest point since 2002. Rents for Class A office space in downtown set another high averaging #3.35/SF.

Colliers construction & forecast:  Hines’ takeover of Tower 301 on Capitol Mall, new design plans should be released in the first half of 2020, but construction is still at least a year away from starting. The new $300 million, 20,000-seat stadium in the railyards should start construction in spring 2020. In the River District, demolition and site work on a new four-building , 1 million SF office development later this year. 

Read more here: 
http://colliers-sacramento.com/MarketReports/2019_Q4_Office_Market_Report_FINAL.pdf


Friday, January 10, 2020

Hyatt Centric Hotel Construction

Behind the historic exterior of brick and terra cotta the steel structure for the 11-story hotel is beginning to rise.
Hyatt Centric Hotel Sacramento - 1122 7th Street

Hyatt Centric Hotel Sacramento - 1122 7th Street

Safe Credit Union Convention Center & Preforming Arts Renovation

Now that demolition is over, construction on the western half of the convention center is well under way. The building is still scheduled to reopen in the Fall of 2020 and completed by March of 2021.
Safe Credit Union Convention Center renovation

Safe Credit Union Convention Center renovation

Safe Credit Union Convention Center renovation

Safe Credit Union Preforming Arts renovation

Safe Credit Union Preforming Arts renovation

Tuesday, December 17, 2019

Ambitious Renovation Schedule

State Natural Resources Building in downtown Sacramento, 1416 9th Street

The current Resources Building on 9th Street has been identified by the State to be in the poorest condition compared to all other state offices in downtown Sacramento at the age of 55 years old.  According to the Legislative Analyst’s Office in 2016, it’s scheduled to be renovated at an estimated cost of $230 million. There are several other older building in downtown Sacramento that are also scheduled for renovations in the next several years including the EDD Headquarters & Annex on Capitol Mall (61 yrs.) at $75 million The BOE building on N Street (24 yrs.) for $55 million and several other smaller renovations totaling an additional $100 million.

The process to complete all these planned renovations is over a ten-year period where staff from existing space move into newly renovated state office space. The schedule has already fallen behind and costs are growing, so it’s hard to say if all planned construction and renovations will be completed as planned. The 2016-17 strategy included construction or renovation of 11 state office buildings but legislative approval will be needed beyond the three specific state office building projects in the Sacramento area.


Read the report and graphs here to see the possible sequencing plan.

State Natural Resources Building in downtown Sacramento, 1416 9th Street

Tuesday, November 19, 2019

Historic District Plans Updated

Tomorrow the Preservation Commission will meet to discuss The Historic District Plans for all 32 of the City’s historic districts and updates the Sacramento Register of Historic and Cultural Resources. Pg. 18 of the report shows the Historic District map in various stages of status for recommended additions and removal. If you choose to review the report, there are many great old time photos of the city and background as to why some districts are that way. 

 https://sacramento.granicus.com/MetaViewer.php?view_id=21&event_id=3576&meta_id=570317

Historic District Map of Sacramento

Tuesday, November 05, 2019

Sacramento's Tallest Sold For $198.8 million


Well Fargo Center - 400 Capitol Mall, Sacramento CA


This is another milestone, setting a new market record for overall price; the 30-story high-rise was sold for $198.8 million to Singapore-based real estate investment trust. This is one of those ‘put your money where your mouth is’ moments demonstrating that market confidence is high. There have been several large sales in the last several years of downtown high-rise office. According the Sacramento Business Journal, the overall price is the recent sale of 400 Capitol Mall is a new record, its valuation of $395 per square foot for the 502,365-square-foot building is still below the record on that basis; U.S Bank Tower at 621 Capitol Mall sold for $161 million, or about $439 a square foot, last year.

2019 - 400 Capitol Mall, Wells Fargo Center sold for$198.8 million
2019 - 300 Capitol Mall, Emerald Tower sold for $127 million
2018 - 621 Capitol Mall, US Bank Tower sold for $161 million
2017 - 980 9th Street, Park Tower sold for $120.5 million
2016 - 400 Capitol Mall, Wells Fargo Center sold for $175.5 million
2016 - 801 K Street, Renaissance Tower sold for $80 million

Well Fargo Center - 400 Capitol Mall, Sacramento CA

Well Fargo Center under construction 1991 - Photo by me

Well Fargo Center under construction 1991 - Photo by me


Well Fargo Center under construction 1991 - Photo by me

Well Fargo Center under construction 1991 - Photo by me

Monday, November 04, 2019

11th & J Street Mixed-Use Proposal

Proposed Anthem Cathedral Square would mixed-use with 153 apt.
After many decades of being in decline, it looks as if this rough stretch of J Street will get a project the market can support. The proposal named Anthem Cathedral Square will be a seven-story mixed-use structure with 153 apartments with retail space on the ground floor. As reported by The SacBee, this proposal would be mid-range of market rate so they will be affordable to more people. It will replace three largely empty and outdated buildings that cover more than half of the block on J Street.
Proposed Anthem Cathedral Square would mixed-use with 153 apt.

For those who wanted more from this site, like a high-rise, this is something the market does not support. Anthem looked into building a 20-story high-rise but they found it was to expensive. This finding is historically correct, back in 2006 developers St Anton / Cordano Company proposed a 26 Stories, 233 Units with 15K Retail and that never left the drawing board. I hope the developer can get this going soon while the  economy is still strong. 

Wednesday, October 23, 2019

Sacramento Skyline Photos

Construction cranes in the Sacramento skyline

Taken on County Road 102 in Yolo County of Sacramento skyline
Sacramento skyline from Hwy. 50 Pioneer Bridge in West Sac.