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

Thursday, May 23, 2019

Waterfront Days this Memorial Day Weekend

Sacramento Waterfront Days appears to be what Gold Rush Days in Old Sacramento use to celebrate. It seems to be almost identical minus the dirt covered streets and ends on Sunday. This three-day event takes place on Front Street, The Embarcadero, and the 1849 Scene all along the Sacramento River.  The heritage celebration features a wide variety of crowd-favorite entertainment, all free to experience and enjoy. Guests in Old Sacramento Waterfront will be entertained by talented period musicians performing live throughout the district in addition to a Shakespearian Comedic Play.  Experience the Gold Rush Fire Brigade (as seen at the Rose Bowl Parade), and other Old West theatrics, family-friendly melodramas, history re-enactments, horse-drawn carriages, canons, gold panning, hands-on children’s arts and crafts activities, the popular Tent City depicting daily life during the Gold Rush, and much more.
Friday, May 24th 
Education Day
1 PM: “Quest for the Gold Spike” Melodrama at the Eagle Theatre*
7 PM: Waterfront Days Bar Crawl

Saturday, May 25th
10-5 PM: Outdoor Heritage Festivities
1 & 3 PM: “Quest for the Gold Spike” Melodrama at the Eagle Theatre*
6-10 PM: Brad Johnson & The Killin’ Time Band (Embarcadero)

Sunday, May 26th
10-5 PM: Outdoor Heritage Festivities
1 & 3 PM: “Quest for the Gold Spike” Melodrama at the Eagle Theatre*
6-10 PM: The Rob Staley Band (Embarcadero)

Monday, May 20, 2019

Railyards Lot 48 Mixed-Use

Railyards Lot 48 Mixed-Use rendering looking south
This Thursday the 23rd, a public hearing on this project will be at the  SacramentoPlanning & Design Commission. The development is intended to provide the first housing opportunities within the Railyards at the Southeast corner of 6th Street and Railyards Boulevard just east of the historic central shops and north of the Sacramento Valley Station. The Railyards area is just starting to develop, with backbone infrastructure still to be installed. The closest buildings to the project site include the large industrial edifices in the central shops area, and a mix of residential and government building south of the railroad in downtown.
Aerial site view of lot 48 in Railyards
No cost has been made public to build this project. 6 levels 75 feet tall 309 multi-unit dwellings, 69 of which are designated as income-restricted units and 4000SF retail.
Contextual aerial of Railyards
 
Historical context of the Railyards in the early 1900's

Thursday, May 16, 2019

Changing Sacramento Skyline

Two high-rises will soon add a little bulk to the Sacramento skyline. In about two months the steel frame will be completed for the State Natural Resources building to the left of the twin state office towers pictured below. Also,  just to the right of the pyramid building the Sacramento courthouse will also begin sometime this year or next year.
Downtown Sacramento skyline as seen from levees near Davis
Look closely to see the crane for the State Natural Resources Bldg. 

Downtown Sacramento as seen from West Sacramento

Downtown Sacramento as seen from West Sacramento



Tuesday, May 07, 2019

Sacramento High-Rise Availability - 1Q 2019

Floor-by-floor Class A office space available in downtown Sacramento
This is encouraging news… downtown Sacramento Class A office vacancy rate is now 8.1%. Of the 16 existing high-rise buildings downtown, most are more than 90% leased. Colliers International has done the research to show floor-by-floor availability where the current asking rate per square feet is $3.19. Presently the only new office space under construction downtown is by the State of California, but these will not increase available space for the private sector. The lack of office space availability in downtown has edged up the asking price per-square-foot, but not enough to justify building a new high-rise.
Floor-by-floor Class A office space available in downtown Sacramento


How much do prices have to rise before it would be profitable to build a high-rise office downtown? Four years ago in 2015, Greg Levi a managing director with Jones Lang LaSalle Sacramento was quoted saying "Though rents are rising, though, they’re not high enough to bring construction cranes just yet. The highest rents, around $3.10 a square foot, are still about 40 cents below what a brand-new building would have to charge,” Levi said. So essentially Greg’s saying that rents would have to rise an additional 40 cents a square foot before it would be profitable to build this high-rise downtown… that’s a 13% increase. In the last four years construction material costs have also gone up so I think the 40 cent increase is now not enough and rents would possibly have to rise even higher that, maybe as much as $3.50SF for construction to pencil out. With the economy staying strong, we might reach a point where the private sector jumps in to build. 301 Tower is marketing its proposed tower on Capitol Mall but the Vanir Tower on J Street has ghosted and no one has heard a peep from them in months.
Sacramento skyline market vacancy and asking rate 1Q 2019

Sacramento market statistics 1Q 2019



Monday, May 06, 2019

800 Block of K Construction

800 K Street and 8th Street
The project is moving along, although very slow. It appears work on the 110 year old Bel-Vue apartment building is still receiving renovations to bring it back to life.

Bel-Vue apartment getting exterior work done

8th Street looking north towards the Bel-Vue apartments

8th & L Street where the one of the structures are collapsing



Rendering of 800 K/L block properties mixed-use development

Friday, May 03, 2019

State Natural Resources Building Construction

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019
As you can see, no tower crane is being used to construct the 21-story tower. As odd as this might sound, using a crawler crane is the method Turner Construction has chosen to erect the structure. I believe this ones main boom can reach a height of 473 feet. These photos were taken last week on Tuesday, April 23rd. As of today if you go to the webcam, the tower is now erecting steel on the 3rd thru 6th floors (as seen in second photo). At the current pace of work, this high-rise will be topped-out by early summer if not sooner. Be sure to check the webcam for updates here.
The new State Natural Resources Building on 8th and O Streets will be LEED Silver certified, 21-stories, 320 ft. tall, 838,000 SF at a cost of $597 million and expected to be completed in the Summer of 2021.

Natural Resources Building at 8th & O Streets to be 21-stories 5-2-2019
Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019
Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets
to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019

Natural Resources Building at 8th & O Streets to be 21-stories 4-23-2019