Quote:
Originally Posted by innov8
Future office needs are going to decline as companies consider permanent
work from home policies.
Colliers International has 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.
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A friend of mine said COVID is the end of the high-rise in Sacramento. I respectfully disagree, we had a very hard time getting office high-rises way before COVID. I don’t believe the virus will affect any proposed buildings. Tower 301 and Vanir were never going to happen anyway. But it will give CalPers an excuse to buy even more time to not push forward at the ‘hole in the ground’.
As Majin said, there are still plenty of projects to look forward to. Several midrise residential and hotel projects are moving along nicely. The Sac County courthouse, MLS stadium, and Aggie Square are next in line.