Tuesday, January 09, 2018

17th & S Street Mixed-Use Building

This Thursday the 11th, the Sacramento Planning and Design Commission will conduct a public hearing and approve this 6 story, 159 unit residential mixed-use project. This CFY Development Inc. and the Capitol Area Development Authority project is ready to go and construction could begin as soon a Spring 2018.  About 12 years ago another proposal closely resembling this one was also proposed for this site, but it did not get out of the gates early enough before the market went south.
P17-030 17th & S Street Mixed Use Building

Friday, January 05, 2018

2017 Year-end Snapshot: Sacramento Office

Colliers International released a report last week showing declining vacancy, modest rent growth and healthy investment in 2017. Colliers report highlights: Net Absorption was positive, but 18 percent below the 5-year average due to scarcity. The Vacancy rate reached the lowest point since early 2003, before the last development boom. New development picked up late in 2017, with several new build-to-suit projects underway. In addition, average rents increased modestly overall, Downtown asking rates increased more sharply. For those wondering about a new office tower being built downtown in the near future, back in 2015 pre-leasing agents for the Vanir Tower said that rents would have to rise to $3.10 a square foot before the Vanir Tower could be built and profitable. Last year the year over year asking rate rose 6.2% to $2.56 per SF compared to $2.41 per SF in Q4 of 2016.

Thursday, January 04, 2018

O Street Project

State office project  at corner of 12th & O Streets in Sacramento

The Department of General Services is planning to issue a Notice to Proceed for this new midrise at the corner of 12th & O Street. This project includes demolition of the existing vacant California Department of Food and Agriculture building and construction of the new building at 12th & O Street.

The new building will be approximately 360, 000 total square feet, 11 stories at a cost of $274 million. The building will include first floor retail and a food court-style cafeteria with approximately 1,150 employees. Demolition is expected to be finished by summer of 2018 and the new building is expected to be completed in early 2021.

 Down the street at 7th & O Street the State is also planning to construct another office building, construction is not expected to begin till early 2019. So far, these are the only large scale office projects expected to break ground in the near future downtown.