Colliers Sacramento 3Q Office & Research Report

Sacramento’s Colliers International third quarter report found that the downtown market was preforming well while suburban growth has takes off. As reported by Colliers, office real estate absorption is positive and vacancies went down. The downtown office vacancy market is the lowest it’s been in 5 years, but it’s suburban expansion that continues to meet growing demand. Third quarter rental absorption was 372,254 sf, while only 80,899 sf was in the downtown market.

This rosy report then brings up the question, what’s going on with the Vanir Tower on J Street. It was proposed two years ago in November, yet nothing has been submitted to the Planning and Design Commission even though a news report in November of last year said it could be built taller. I’ve seen this game before, at this point the developer only appears to be looking for free publicity.

Community Center Theater Renovation

Full Expansion of Community Center Theater and Convention Center

The City Council has voted to move forward and update the 40-year-old center adding 41,000 sf, replace seats, renovate the lobby and dressing rooms. The $83.4 million renovation could begin as soon as the 4 quarter of 2018 and completed by 2021. While work is being done, the Memorial Auditorium would be used for performances during the construction period. In addition, the Memorial Auditorium will also receive an upgrade estimated to be $16.2 million, and Phase 1 of the Sacramento Convention Center estimated to be $170 million.

The projects would be paid for by the City’s Transient Occupancy Tax (TOT) which is a 12% charge for all people who occupy a hotel in Sacramento. The structure of the TOT would be supported by revenue bonds.

Only conceptual designs were provided for the City Council. 

http://sacramento.granicus.com/GeneratedAgendaViewer.php?view_id=22&clip_id=3876

Office Bldg. Acquired For Convention Center Expansion

The City of Sacramento has agreed to buy the rest of a three story office building located a next to the convention center on 15^th Street. According to the Sacramento Business Journal, a planned expansion of the convention center would demolish and replace the building with a new east entrance and accommodate a planned expansion

Sacramento City Council will get a report on the city’s conceptual plans for the expansion of the convention center and renovation of the Community Center Theater at a meeting on Oct. 11. Decisions will be made later this year or early next year after new Mayor Darrell Steinberg takes office.