Colliers Weekly Market Insight

There has been a lot to process and understand the last few months as COVID takes a toll. The restaurant and small business are going to be impacted the worst. Colliers reported that “At least 20% of Sacramento area restaurants have already permanently closed due to the current pandemic. The most recent announcement was PF Chang's at 16th & J Street. Many more small businesses will close as a result of these new business shutdowns and restrictions.”  In addition, “The State of California has paused new office leasing. And many companies are considering or are already in the process of downsizing as executives consider implementing extended or permanent work from home policies. Colliers Sacramento's Q2 2020 Sacramento Office Market Snapshot will be later this week.

Will The Capitol Annex Renovation Continue?

The SacBee is reporting that a group of historic preservationists are asking the Capitol Annex project be halted because of the destruction of trees. The current plans call for a underground parking garage on the south side along N Street, a modern visitors center underground to the west and a replacement of the current annex to the east. With the budget deficit expected to run $50 billion or more, the preservationists are asking the state to rethink the project. Lawmakers believe the project is safe because it’s being paid for by selling bonds and repaid to investors over time. Next month lawmakers will negotiate the budget and choose to delay certain projects. The proposed $755 million project includes: (1) the loss of many trees in Capitol Park; (2) the degradation of public gathering spaces; (3) the disturbance of Tribal Native Community resources, and; (4) the demolition of Capitol Annex. Preservation advocates are calling for a better plan.

Colliers Sacramento Office Snapshot: Q1 2020

The Sacramento office market posted a strong start to 2020. Preliminary statistics show more than 213,000 SF of net absorption in Q1 2020 as the market vacancy rate fell to an 18-year low of 13.3 percent. However, the coronavirus crisis has put the market’s future growth in doubt. Their quarterly report is coming soon. http://view.ceros.com/colliers-sacramento/q1-2020-sacramento-office-snapshot/p/1

Colliers Q1 2020 Market Indicators relative to one year ago

Colliers Q1 2020 Key Takeaways

CA Natural Resources Headquarters construction

Scheduled work plan includes Install curtain wall, Fire protection, Install roofing and many other activities. Click here, here & here to access the construction schedule and other important information.

CA Natural Resources Headquarters construction

CA Natural Resources Headquarters construction

CA Natural Resources Headquarters construction

CA Natural Resources Headquarters construction

CA Natural Resources Headquarters construction

Marshall Hyatt Centric Hotel Construction

They look to be on the fifth floor of the 11-story, 172 room hotel. The original brick façade should look good once the preservation and restoration effort is finished. The project will cost $68 million projects with $4 million in city subsidies. The time line to open is in late 2020.

Marshall Hyatt Centric Hotel construction crane

Marshall Hyatt Centric Hotel construction crane

Marshall Hyatt Centric Hotel construction at 7th & L Streets

Marshall Hyatt Centric Hotel construction on 7th Street

Marshall Hyatt Centric Hotel construction
from 7th & K Streets

Marshall Hyatt Centric Hotel construction
looking north from O Street

Marshall Hyatt Centric Hotel construction crane

Safe Credit Union Convention & Preforming Arts Centers Construction

Both the Convention & Preforming Arts Centers are scheduled to be completed in March of 2021, about a five month delay from the original opening date of October 2020.

Safe Credit Union Preforming Arts Center construction

Safe Credit Union Preforming Arts Center construction

Safe Credit Union Preforming Arts Center construction

Safe Credit Union Preforming Arts Center construction

Safe Credit Union Preforming Arts Center construction

Safe Credit Union Preforming Arts Center construction

Safe Credit Union Convention Center construction

Safe Credit Union Convention Center construction

Safe Credit Union Convention Center construction

Safe Credit Union Convention Center construction

Safe Credit Union Convention Center construction

Hotel Planned for 9th & L Streets

Proposed Canopy hotel rendering submitted to City Planners 

A formal design review has been submitted to city planners for a proposed 14-story hotel at the corner of 9^th & L Streets. As reported by the Sacramento Business Journal, the project would cost about $150 million, 275 hotel rooms with 50 luxury apartments on the top floors; have a roof top bar and ground floor retail. The Canopy by Hilton at 831 L Street will have a total of 280,000 SF.

Original rendering released two weeks ago of proposed Canopy Hotel

Read more here, here, here, & here.

10th & O Street State Swing Space Construction

Expected to be completed in the Fall of 2021, the building looks to be on the fourth or fifth  floor. 

10th & O Street 'Swing Space' office Bldg. construction

10th & O Street 'Swing Space' office Bldg. construction

10th & O Street 'Swing Space' office Bldg. construction

10th & O Street 'Swing Space' office Bldg. construction

1215 O Street Project Construction

1215 O Street, Sacramento CA 

Construction Milestones
 -Structural concrete is complete

-Windows are being installed from 9th to 11th floors
-Penthouse structural steel is erected
-Drywall framing is in progress through the 8th floor
-Mechanical & electrical work is proceeding through the 8th floor
-Raised access floor is being installed on the 2nd to 4th floors
-Ceiling painting in progress on 5th floor. Learn more here, here & here

1215 O Street, Sacramento CA

1215 O Street, Sacramento CA

1215 O Street, Sacramento CA

1215 O Street, Sacramento, CA

19J Ready For Renters

1827 J Street, Sacramento, CA - 19J

This 11-story mixed-use mid-rise is ready for renters. There are 173 studio “micounit” ranging from 312 to 460 square feet and renting between $1,635 for a studio and $4,285 for a one bed room. I’m hoping this building fills up and meets the needs of many who say there is not enough housing downtown.

1827 J Street, Sacramento, CA - 19J

“Spring” Bridge Design Chosen

New crossing over the Sacramento River

A new bridge will soon connect the cities of Sacramento and West Sacramento over the Sacramento River. The $210 million “Spring” bridge will carry automobile, bicycle, transit, and pedestrian traffic. The current “I” Street bridge was to narrow to serve buses and the did not have bicycle lanes. The current “I” Street bridge will continue to serve rail crossing on the lower deck but the upper deck is being planned for use by pedestrian and bicycle traffic. The architect is Noel Shamble of San Francisco-based T.Y. Lin International Group.

$158 million has been identified from state and local funding, the remaining amount will be paid for  from a variety of local, state and federal sources. Construction will start in 2021 and open in 2024.

New crossing over the Sacramento River

New crossing over the Sacramento River

New crossing over the Sacramento River

https://fox40.com/news/local-news/city-unveils-final-design-for-i-street-bridge-replacement/

The Fort Sutter Hotel

Slated to open in 2021, Fort Sutter Hotel will have 107 rooms, Four Palms Bar and Cafe Bernardo's. This $28 million bar, restaurant and hotel project has been under construction since October 2018.

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 construction along the Sacramento River

Powerhouse Science Center construction along the Sacramento River

Powerhouse Science Center construction along the Sacramento River

The new Powerhouse Science Center, an adaptive reuse of the historic 1912-era PG&E Power Station, will be the region’s premiere science center and serve as a hub for science education and exploration. The historic power station will undergo stabilization and complete rehabilitation with construction of a new floor level inside and a new intermediate floor for exhibit space. A new two-story, 22,000SF addition will be built on the east side of the existing building containing an entry lobby,  classrooms, offices, a café and a 110-seat planetarium.

601 Capitol Mall Residential Construction

Construction has started on an eight-story mixed-use project with 162-units and more that 5,800 square feet of retail. No cost has been given by the developer Shorenstien Properties.

601 Capitol Mall foundation work and crane installation

601 Capitol Mall foundation work and crane installation

601 Capitol Mall foundation work and crane installation

601 Capitol Mall foundation work and crane installation