Posted Nov 3, 2017, 7:36 PM
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Registered User
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Join Date: Jul 2015
Posts: 27
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Recent office market trends suggest new construction is on the horizon
Key points:
Quote:
1) With the growth in rents, speculative construction could return in the more attractive submarkets, like downtown Sacramento and Roseville, in the next couple years.
2) ...Vacancy, at just under 14 percent, is near the 10-to-12 percent figure considered a balanced market. Among class A properties, the vacancy is only 8 percent.
3) One of the biggest obstructions to new deals is the cost of tenant improvements, reflecting overall cost increases for materials and labor in construction... such improvements now cost $60 to $65 per square foot.
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Anybody think this could mean Vanir tower can be on the horizon? Or another new office high rise? Or just hype from the BizJournal?
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