Colliers Sacramento Office Snapshot: Q1 2021

The office market has recorded a negative one million square feet of net absorption driven by vacant sublease spaces. The Colliers Sacramento Office 2021 Q1 report, also looks closer at the six month negative trend for office space with the region loosing -493,769 square feet of new absorption in 2020, and then again in the first quarter of 2021, a negative -511,342 square feet. The future of needed office space appears to be a hybrid work model because it’s still unclear what the demand will be. Rents are also falling for downtown Class A space as urban high-rises fall out of favor and large blocks of space have come on the market. Over the last year the Sacramento office tenants continue to give back space across the market and sales are actively trending downward as investors are leery.

Capitol Mall Redevelopment Project

Sacramento Capitol Mall as it is today with two lanes and wide strip down the middle

The grand approach to Sacramento's Capitol Mall from the west is a scenic promenade with a two lanes of traffic and a wide center strip devoted to vegetation. Today as we drive across the Tower Bridge, local residents as well as visitors have a clear view of the Capitol.

In 2014, California law makers started mulling over the idea to transform and makeover Capitol Mall, the strip between 10^th Street and the Sacramento River. In 2019 the effort picked up steam with the state Senate seeking a resolution to both rename the circle and plaza at the head of the mall after legendary California politician Willie Brown Jr.

The proposed changes to Capitol Mall are, planners want to put vehicle traffic through the middle of the mall and cut the number of lanes in half. The current belief is that the roadway is much wider for the low traffic it sees. But ever since the Golden 1 Center opened, Capitol Mall has been very active before and after events, especially for those looking to pick up an Uber ride away from the congestion that builds up on both L & J Streets. Any times when there is an event at the golden 1 Center, Capitol Mall is a very busy stretch of road because L Street is closed to thru traffic from 8^th Street to 4^th Streets. Reducing the lanes to one lane in each direction will create more of a backup on Capitol Mall as drivers are waiting for their passengers. It happens a lot on K Street and planners should learn from this mistake. What planners are doing is social engineering to change driving habits. After Capitol Mall has the number of lanes reduced, traffic will be worse, hoping this congestion get you out of your car and take public transit instead. Manipulating people, changing behavior. This is happening on many downtown streets, often referred to as a road diet.  Your tax dollars at work as cities shut traffic lanes. On many streets and roads, road diets don't leave adequate capacity for cars and trucks. That pushes traffic onto other streets.

An early rendering of the Capitol Mall transformation shows the changes to the roadway

If the redevelopment of Capitol Mall is approved, construction of the project is estimated to cost up to $16 million, but city planners won’t be able to apply for and receive funds until 2022, designs for the project will also be finalized by 2022, and should the project remain on schedule, construction will begin in 2023. Final Plans, Specifications, Estimates begin this spring thru summer 2022.

Back in 1966, both the city and the former Sacramento Redevelopment Agency cleared away 15 square blocks in what was originally the business district. This included the beautification of Capitol Mall when completed in 1968. I personally enjoy the current design of the Mall. The grandapproach of the Capitol when crossing the Tower Bridge, unobstructed view with a lawn median.

“Such a wide street approach to Sacramento opening into beautiful Capitol Park together with the city’s beautiful trees, would be something of which Sacramento could be well proud.” Gov. C.C. Young, 1928

The Capitol Mall in 1966

M Street, Capitol Avenue, View West from Third Street, circa 1945

Sacramento Capitol Mall as it is today with two lanes and wide strip down the middle

1215 O Street Office Building Construction

1215 O Street State Office Bldg.

Construction Milestones:

• Building envelope is substantially complete
• Elevators are operational and are pending final controls and inspection
• Modular Systems Furniture installation is substantially complete on Levels 2 to 11
• Metal stud framing, MEP rough-in and drywall is substantially complete
• Interior finishes are nearing completion on Levels 2 to 11
• Interior plaza areas are nearing completion
• First floor lobby and Kiosks are nearing completion
• Inspection, Testing and Commissioning of building systems is underway
• Site work continues along O Street

This $274 million dollar structure is a eleven story mid-rise, 360,000 total gross square feet.  Completion early 2021

1215 O Street State Office Bldg.

1215 O Street State Office Bldg.

Safe Credit Union Convention & Performing Arts Centers Construction

SAFE Credit Union Convention Center - 1400 J St 

A total of $350 million in bonds to finance the renovation/expansion of the C3 Project. The repayment of the bonds is the 12 percent TOT tax less required transfer fees to the City’s general fund and Visit Sacramento. The Memorial Auditorium began its renovation in June 2018; it reopened in May 2019 and will begin the restoration phase in Summer 2021. The SAFE Credit Union Convention Center began its renovation/expansion in December 2018 and hosted conventions into summer 2019 before its closure; it will reopen in Spring 2021. The SAFE Credit Union Performing Arts Center began its renovation in May 2019; it will reopen in Summer 2021. Additional C3 Project info can be found here.

• SAFE Credit Union Convention Center - 1400 J St - estimated $245 million renovation/expansion
• SAFE Credit Union Performing Arts Center - 1301 L St. - $120 million, the renovation
• Memorial Auditorium - 1515 J St. - $19 million renovation

SAFE Credit Union Convention Center - 1400 J St but seen from 15th St.

SAFE Credit Union Convention Center - 1400 J St but seen from 15th St.

SAFE Credit Union Convention Center - 1400 J St but seen from 13th St.

SAFE Credit Union Convention Center - 1400 J St but seen from 13th St.

SAFE Credit Union Convention Center - 1400 J St but seen from 13th St.

SAFE Credit Union Convention Center - 1400 J St but seen from 13th St.

SAFE Credit Union Convention Center - 1400 J St

SAFE Credit Union Convention Center - 1400 J St but seen from 13th & J St.

SAFE Credit Union Convention Center - 1400 J St but seen from 13th& J St.

SAFE Credit Union Convention Center - 1400 J St

SAFE Credit Union Performing Arts Center - 1301 L St. 

SAFE Credit Union Performing Arts Center - 1301 L St. 

SAFE Credit Union Performing Arts Center - 1301 L St. 

SAFE Credit Union Performing Arts Center - 1301 L St. but seen from 13th St. 

Powerhouse Science Center Construction

Construction is underway at the Powerhouse Science Center, a $50 million project is expected to open early 2021 opening along the banks of the Sacramento River.

Powerhouse Science Center at 400 Jibboom St. Sacramento, CA 95811

The Frederic @ 601 Capitol Mall Construction

601 Capitol Mall - The Frederic looking east on Capitol Mall

This 8 Story mixed-use building is coming together quickly. 207,688 total sq. ft. 162 residential units, ground-floor Retail is 7,161 sf. Parking is 26,424 sf. Expected to be completed in 2021.

601 Capitol Mall - The Frederic looking west on L Street

601 Capitol Mall - The Frederic looking south on 6th Street

601 Capitol Mall - The Frederic on 6th Steet

601 Capitol Mall - The Frederic looking south on 6th Street

601 Capitol Mall - The Frederic looking north on 6th Street

601 Capitol Mall - The Frederic looking east on Capitol Mall

601 Capitol Mall - The Frederic looking west on Capitol Mall

Sacramento County Courthouse Construction

Sacramento County Courthouse as seen from 7th & G St parking garage

 At the corner of 6^th & H Streets, two tower cranes are soon going to rise above the Sacramento County Courthouse project site. A few weeks ago the OX Blue camera was turned off to the public, but if you take a little walk around the area, there are several good spots to check it out. Construction began in November 2020 and is estimated to complete in December 2023. This high-rise will be 270 feet,  17 stories (+1 mechanical level), 18 total stories with 1 level of parking below, 53 courtrooms, 566,895 square-foot building will cover an entire city block (2.5 acres) and house the court’s criminal and civil operations. At an estimated cost of over $501 million, the project also includes a large jury assembly room, food services, civil settlement center and will bring all of the court’s administrative arms under one roof. Project is targeting LEED Silver, tracking for Gold. The State bought the land in 2014 for $10 million. Clark Construction, Courts.ca.gov, Sacramento Granicus, Sacramento Courthouse Construction.

Sacramento County Courthouse as seen from I-5 north

Sacramento County Courthouse as seen from I-5 north

Sacramento County Courthouse as seen from H St looking north

Sacramento County Courthouse as seen from H St looking north

Sacramento County Courthouse as seen from H St looking north

Sacramento County Courthouse as seen from H St looking north

Sacramento County Courthouse as seen from 7th & G St parking garage

Sacramento County Courthouse as seen from 7th & G St parking garage

Sacramento County Courthouse as seen from 7th & G St parking garage

Sacramento Commons (Phase 1) Construction

Sacramento Commons on 5th Street. Two mid-rise mixed bldg.

The first phase of construction on the west side of Sacramento Commons, facing 5th Street has two mid-rise mixed-used buildings, each with 206 units. ranging from 565-square-foot studio apartments to 1,075-square-foot two-bedroom, two-bathroom units. Nearly half of the units will be one bedroom/one bathroom ranging from 625 to 715 square feet. There will also be a dozen 1,390 square foot live-work units. Each building would house 4,000 square feet of ground floor retail. Construction started in the Summer of 2019 and expected to be completed in 2022.

Sacramento Commons on 5th Street. Two mid-rise mixed bldg.

Sacramento Commons on 5th Street. Two mid-rise mixed bldg.

Sacramento Commons on 5th Street. Two mid-rise mixed bldg.