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  #1041  
Old Posted Apr 27, 2007, 2:47 PM
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Well you are all probably right....

Given Sacramento's strong retail and commercial office market, I would imagine that they are in fact probably reducing the housing component and upping the retail and office space (as Brandon said).

I really hope they keep the canal district and allow space for a future performing arts center.

Obviously the arena is never going to happen in the railyards.
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  #1042  
Old Posted Apr 27, 2007, 4:28 PM
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aid).I really hope they keep the canal district and allow space for a future performing arts center.
I heard the canal is out...

http://sacramentohistory.blogspot.com/

This blog has the latest run down of latest revision


Last edited by sugit; Apr 27, 2007 at 4:38 PM.
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  #1043  
Old Posted Apr 27, 2007, 4:39 PM
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I heard the canal is out...

http://sacramentohistory.blogspot.com/

This blog has the latest run down of latest revision
Very nice find. As for the author's comments about the green parkway strip being dead space like Capital Mall...I'm not so sure. Unlike Capital Mall, it looks like this parkway is more pedestrian friendly, and it will be surrounded by residential buildings. If it's anything like the park blocks in downtown Portland, (with plenty of residential) this parkway will have joggers and dog walkers and sunbathers, etc. But obviously, the residential uses are the key.

I noticed on the map's key, it shows that residential uses will be incorporated throughout the site, even over the retail areas. Awesome! Who knows what it will actually be in 20 years, but at least they are planning to design res. over retail.
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  #1044  
Old Posted Apr 27, 2007, 4:41 PM
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Region's office market heads skyward

Gain in leased space doubles '06 pace
Sacramento Business Journal - April 27, 2007
by Michael Shaw

For the Greater Sacramento office market, almost all signs point up.

Rents are rising. The gain in total leased space since the start of the year, known as net absorption, is increasing at twice the pace of last year. Space is at a premium in downtown's premier buildings.

About the only thing headed down in most of the region is vacancy rates, according to first-quarter reports by major brokerages. If the trend continues, as some in the industry expect, it would mean a year that favors landlords over tenants.

The big exception for the first three months of the year was Rocklin, where vacancy rates are high and climbing as developers continue to build.

Although they track slightly different segments of the market, Cornish & Carey Commercial and CB Richard Ellis each issued first-quarter reports showing that vacant space shrank in the first quarter by almost 1 percentage point. It sounds small, but when vacancy rates are between 12 percent and 15 percent, a 1 point drop in a quarter translates to a significant decrease.

The brokerages estimated that total leased space in the market ballooned by as much as 382,000 square feet. That's more than twice the increase for the same period last year.

"We're off to a good start," said John Frisch, managing partner of Cornish & Carey's Sacramento office. "For the last six months or so, there's been a feeling that there is more activity out there."

It's a pleasant surprise for landlords. Last year was considered a bit of a dud, and the early outlook for 2007 wasn't promising.

Rising prices, foreign interest
Frisch's office tracks leasing and new construction of non-government buildings that exceed 5,000 square feet. In Sacramento, there's about 70 million square feet of offices fitting that description, and the brokerage estimates that about 14.3 percent of that space is unused, down from more than 15 percent last quarter.

CB Richard Ellis tracks larger buildings, of at least 10,000 square feet, and its recent report showed a similar trend, with vacancy falling to about 11.75 percent for the Sacramento area.

Falling vacancy typically means rising rents.

The average price in Sacramento climbed 4.5 percent in the past six months to $1.85 a square foot for a full-service office lease, according to CB Richard Ellis.

"The absorption numbers will be steady throughout the year," said Jason Goff, a senior vice president at Jones Lang LaSalle, of the overall regional market. "I would not be surprised to see the market dip below 10 percent vacancy. ... There's steady growth in the state (government), steady growth in state-related agencies and the private sector."

One indicator of the value of Sacramento real estate may come from the amount of foreign investment that arrives this year. There were just three overseas transactions in 2006 -- two by multi-regional buyers and one by a German fund -- totaling $202 million. That's about a 50 percent increase from the previous total of $137 million, according to Jones Lang LaSalle. By comparison, foreign buyers spent $1.75 billion on San Francisco real estate last year.

Vacancy at Class A buildings downtown is about 5 percent. For buildings along the L Street corridor, which serve lobbyists, associations and attorneys who want quick access to the Capitol, vacancy is even lower, about 2 percent. (Meridian II is so set with its location)

But the downtown outlook is uncertain, with two new buildings expected to be completed within the next two years: 621 Capitol Mall by David S. Taylor Interests Inc. and Tsakopoulos Investments' 500 Capitol Mall. Both are trying to lure tenants. Together, they will bring 765,000 square feet onto the market.


A surprising development in the first quarter was a sharp drop in available space in South Natomas, largely because Sutter Health leased more than 50,000 square feet in a business park.

Still building as Rocklin softens
At the other end of the spectrum, brokers have started talking about the high vacancy rates in Rocklin -- about 25 percent, a 1.7 percentage-point increase in the first quarter.

Chris Strain, of C. Strain Corporate Real Estate, predicted last year that vacancy rates would continue to fall marketwide. But Rocklin is looking overbuilt, he said. He provided a quick market analysis that showed there are 15 buildings in Roseville or Rocklin that could accommodate a tenant wanting at least 50,000 square feet.

Even city leaders have expressed concern about the abundance of space.

Developer Abe Alizadeh is building parts of three office projects in Rocklin that will total about 450,000 square feet when completed.

"We invest and develop for the long term, not the short term," he said. "I completely believe in the long-term prospects of Highway 65. If you believe in it, you just have to weather that and go forward."

While the industry waits to see if the first quarter was a fluke or the start of a trend, tenants seeking industrial property have seen vacancy rates hold steady or fall for several quarters. CB Richard Ellis figures showed more of the same in the first quarter.

Industrial construction largely has been contained to small buildings, even as developers have been unable to meet demand for large projects, said Kevin Ramos, a partner in the Buzz Oates Cos.

"Space is getting tight," he said. "There's not a lot of land left to do industrial in town. Land is expensive. Fees are expensive. It's been a challenge."



Last edited by sugit; Apr 27, 2007 at 5:01 PM.
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  #1045  
Old Posted Apr 27, 2007, 4:44 PM
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Man, I was just gonna post that article. I guess I'll post the picture that was with it. Good read too.





Thanks for the railyards info too.
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  #1046  
Old Posted Apr 27, 2007, 4:50 PM
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I think this is going to be a nice looking building, sea of parking aside.

South Natomas offices will seek downtown rates

Kelly aims for '09 completion

The majority owner of River City Bank plans to start construction this fall on what would be some of the most expensive office space outside downtown Sacramento.

The 12-story building would conserve water, save energy and even produce electricity.

It might also be the new headquarters for River City Bank.

Jon Kelly, bank founder and leader of the partnership developing the building, wants a lease rate of $3.20 per square foot for The Gateway Tower, a dramatic increase from the going rate of $2 in Natomas, but most of that is in older two- and three-story buildings.

The new Class A office buildings downtown fetch lease rates as high as $3.50 per square foot.

The 320,000-square-foot building in Natomas Corporate Center would be the tallest building in South Natomas. The tallest buildings there now are the two six-story buildings next door in the center.

The lease rates, however, might be pushing the limits of what businesses will want to pay for the area.

People paying downtown prices want to be downtown, said Chris Strain, tenant office broker with C. Strain Corporate Real Estate.

"If you are talking Class A office space, you are competing against downtown, and there is a tremendous amount of competition," Strain said. "It is only when downtown gets really tight, then offices get squeezed out to the suburbs. The professionals who want Class A offices want to be able to go outside and be part of the city, not just part of an office park."

"That is the benefit of downtown" said Don Little, senior vice president of Northern California for Opus West Corp. "There, you can walk to the high-end restaurants and hotels. In Natomas, you have to get in your car to go to lunch."


A high-end hotel is planned for the Natomas Corporate Center.

The current high rate in Natomas is about $2.35 per square foot in a fully serviced building, said Steve Park, office broker with TRI Commercial/Corfac International.

"I think it is going to be a tough play to get 90 cents more," he said. "I can't see them getting that."

The most likely candidates for occupants in the building are people lured out of downtown, Little said.

"It's going to be a beautiful building, and they will lease it out," said John Frisch, senior vice president with Cornish & Carey Commercial.

Price aside, Gateway Tower does have one advantage -- free parking. The cost of parking downtown adds anywhere from 40 cents to 50 cents per square foot to the lease price.
Green, happy tenants

The greening of society should also be a big selling point for the Gateway Tower, said Tom Aguer, broker with Aguer Havelock Associates, which is pre-leasing the building. "This will be the crowning touch in the South Natomas market, a real landmark."

The building's design will save more than 3.5 million gallons of water a year compared to a traditional design. It will do that with an efficient heating and air conditioning system, waterless urinals and other features. It will also have an array of solar panels creating covered parking. The duct work of the mechanical systems will be cleaned to hospital standards, and the ongoing filtering will eliminate 95 percent of the pollutants.

The building will have a "gold" Leadership in Energy and Environmental Design (LEED) rating, the second-most stringent rating. Not only will the building conserve resources, but also it will use no gas-emitting paints, carpets or finishes.

"Employees who work in a LEED building are healthier, happier and more productive," Aguer said.

There is a huge additional cost to converting an existing building to LEED certification, but it is only a nominal additional cost to build with LEED in mind from the start, he said. And the building will benefit from ongoing savings.

"The CEOs of today are sensitive to this," Aguer said. "Thirty years ago, they didn't think about it very much, or they didn't think it was important. The people running companies now were raised in the 1960s and 1970s, and they want this."

etting sights on Spring 2009

When Kelly, chairman of the board of River City Bank, developed the other signature buildings in the Natomas Corporate Center, he jump-started the project by moving the headquarters of River City Bank there. The bank's lease comes due in a year.

"We are an interested party, but we are not committed to it yet," said Anker Christensen, chief financial officer of RCB Corp., the holding company of River City Bank.

The tower has no signed leases yet, but as Aguer points out, the partnership didn't get its entitlements from the city until the end of last year. So far, tenants are interested in everything from large offices to multiple floors, he said.

With construction starting in October, the Gateway Tower could be ready for tenants in spring 2009. That timeline would have it enter the marketplace within a year or so after David Taylor's U.S. Bank Tower on Capitol Mall, expected to open in September 2008. A new office building that Angelo G. Tsakopoulos is building at 500 Capitol Mall could open sometime in 2009.

Back in the recession of 1994, the Sacramento market had three new Class A office buildings open within a span of two years: One Capitol Mall, the current U.S. Bank Plaza and 400 Capitol Mall (Wells Fargo Plaza).

"That was more than the market had seen in a long time, and they all leased up," Aguer said.

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  #1047  
Old Posted Apr 27, 2007, 4:54 PM
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Originally Posted by SacRising View Post
Very nice find. As for the author's comments about the green parkway strip being dead space like Capital Mall...I'm not so sure. Unlike Capital Mall, it looks like this parkway is more pedestrian friendly, and it will be surrounded by residential buildings. If it's anything like the park blocks in downtown Portland, (with plenty of residential) this parkway will have joggers and dog walkers and sunbathers, etc. But obviously, the residential uses are the key.

Thanks for posting that sugit!! i didn't want to wait til June anyway

I haven't had a chance to really look it over, but that parkway strip looks to be a good size. Not a worthless median, and not a vast swath of barren lawn. Locally speaking, brings to mind Curtis Park - and that's a good thing.
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  #1048  
Old Posted Apr 27, 2007, 4:56 PM
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^ Great article.
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  #1049  
Old Posted Apr 27, 2007, 10:40 PM
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Railyards Shops Buildings

From the blog...

"One semi-troubling thing about the new map is that it doesn't clearly delineate which of the historic Shops buildings, if any, are explicitly part of the Railroad Technology Museum--one of the more interesting upcoming discussions will be how State Parks and Thomas Enterprises come to terms over what will belong to Parks (ideally, the majority of the Shops buildings, if not all of them) and what will be restored by Thomas (hopefully at least a small part like the Paint Shop, for use as a public-accessible market building.)"


Last I heard, Thomas will own the all of the Shops buildings except for the two western most buildings, which will be the Railroad Technology Museum.
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  #1050  
Old Posted Apr 28, 2007, 12:48 AM
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I believe the museum has had this sorted out for several years now...

Quote:
In late 1999, the Museum secured a lease from Union Pacific Railroad on the complex’s two main structures, the Boiler Shop and Erecting Shop
- taken from this page.

Erecting Shop...



Boiler Shop...



taken from this page.
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  #1051  
Old Posted Apr 28, 2007, 5:15 AM
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CalSTRS crane


500CM hole


From the third floor of the Capitol
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  #1052  
Old Posted Apr 28, 2007, 5:24 AM
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CalSTRS crane


500CM hole


From the third floor of the Capitol
Great Shots as usual, innov8!

As I drove by 500 CM on 5th street, I had a great view of 621 CM, so it got me wondering how much 500 CM is going to block pedestrian views of 621 CM.

Only Time will Tell.
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  #1053  
Old Posted Apr 28, 2007, 6:15 AM
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Nice! Two cranes are up now...I wanna see more though!

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  #1054  
Old Posted Apr 28, 2007, 2:12 PM
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By Bob Shallit - Bee Columnist
Published 12:00 am PDT Saturday, April 28, 2007

Movin' on up: Call it a coming out party for the condo that could.

Developers of the L Street Lofts project in midtown are blocking off 18th Street (between Capitol and L) from 11 a.m. to 4 p.m. today for a street fair celebrating their progress.

Never mind that the planned nine-story building is only about half completed.

"The building has become very apparent in the neighborhood and it's time to connect with midtown," says Michael Onstead, a Lyon Real Estate agent who is handling project sales.

While downtown's two biggest condo projects remain grounded by financing problems, this one in midtown -- being developed by Sotiris Kolokotronis -- is on schedule for a November opening.

Onstead reports that buyers have made down payments on about 20 of the 92 units, which range from $389,000 to $1.2 million. Paperwork is being processed for another 10, he says.

Developers of downtown's high-rise condos required down payments of 10 percent and 15 percent of each unit's sales price. Kolokotronis is asking a flat rate per condo that's considerably less -- $15,000 for most units, $60,000 for the penthouses.

Why so low? Because asking more from buyers inhibits sales. "It's not that they don't have the ability (to pay). They just don't want to," he says.
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  #1055  
Old Posted Apr 28, 2007, 6:46 PM
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I'll be at the block party today. I'll be wearing my tatered cowboy-ish hat so if you see me say hello.
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  #1056  
Old Posted Apr 28, 2007, 7:17 PM
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I'll be at the block party today. I'll be wearing my tatered cowboy-ish hat so if you see me say hello.
I'm looking at it right now - big balloon arch but not too busy. Playing some kind of bad music really load. Yikes.
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  #1057  
Old Posted Apr 28, 2007, 9:29 PM
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just got home. nope not too busy. It's saturday afternoon and I got a late start. Councilmember Cohen just showed up while I was grabing a bite at the Mexican place next to Zocola's but it's too hot out there especially since they took the trees out and I've got work to do so maybe I'll go out towards the end.
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  #1058  
Old Posted Apr 28, 2007, 11:48 PM
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I'm looking at it right now - big balloon arch but not too busy. Playing some kind of bad music really load. Yikes.
Hey, I liked the band. Good old fashion blues and rock n roll. What's not to like. Anyhow, we got sloshed at Zocalo, so maybe the band sounded better than they really were,

The fresh lime margaritas were really good!!!

Kudos to the belly dancers!
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  #1059  
Old Posted Apr 29, 2007, 1:14 AM
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Mmmmm, belly dancers.
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  #1060  
Old Posted Apr 29, 2007, 2:11 AM
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Mmmmm, belly dancers.


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