Friday, April 10, 2009
State office growth staying centralized
Plans to double space over next 40 years
Sacramento Business Journal - by Michael Shaw Staff writer
The state of California will need to nearly double its office space over the next 40 years and will look to fill remaining vacant spots in Sacramento’s central core, including The Railyards, but will also consider other areas such as suburban office campuses and the West Sacramento riverfront.
Those are the findings of a much-anticipated study released today that could mean opportunities for landlords and developers. Local government leaders, anxious about the state’s long-term goals, have also been eager to hear the findings and for the most part were relieved to hear the results.
The Sacramento Region State Office Planning Study estimates a need for another 13.7 million square feet in the capital region, far more than currently controlled by state government in the downtown core.
Consequently, officials will look to the most promising ready-to-develop sites to accommodate the state’s growing office needs.
The study, commissioned by the Department of General Services, is the first major update to an obsolete 1960s-era plan that envisioned state offices occupying a monolithic chunk of downtown encompassing 62 blocks south of the Capitol.
“A really long-term focus like this hasn’t been done in probably 40 years,” said Doug Button, deputy director of General Services.
The study determined several sites in Sacramento and West Sacramento that could be the best short-term solutions for expanding office needs, based on proximity to public transit, compliance with environmental and floodplain considerations and several other state requirements.
But the study is not a “target list” of parcels that the state plans to locate, Button cautioned, noting that the optimum sites could change over time.
“If a new bus line goes in, it could change things next year,” he said.
And given the economy and the state’s budget problems, the study’s not likely to immediately affect the regional office market or development trends.
A consultant team led by Hellmuth, Obata + Kassabaum Inc., an international planning firm better known as HOK, studied available office opportunities in a 15-mile radius of downtown Sacramento. The team examined 48 different sites within that area, some on state-owned land and others entitled or planned for office developments. Consultants met with officials from Sacramento, West Sacramento, Sacramento County, the Sacramento Regional Transit District and the Sacramento Area Council of Governments to examine growth areas and determine which parcels are best outfitted for office developments.
Although it falls within the 15-mile radius, the city of Davis was the only jurisdiction that declined to participate, officials said.
The study determined eight of the 48 sites are “optimum” destinations for new state office buildings over the next five years. One of the big winners could be West Sacramento, which has two optimum sites — the area formerly called the “Triangle” that has been renamed “The Bridge District,” and the Washington area to the north of that district.
West Sacramento Mayor Christopher Cabaldon welcomed the possible arrival of state offices.
“It’s the right strategic fit for what we’re trying to accomplish,” he said. “It’s keeping these types of developments within the urban core, so it fits with regional strategies.”
West Sacramento is already transforming industrial districts into housing and office developments, but it still needs to build critical fiber-optic lines, sewer connections and other infrastructure to ensure that transformation, Cabaldon said.
The state’s consultants concluded there could be about 4 million square feet of usable space in West Sacramento. But the city says the Bridge District alone could accommodate as much as 7 million square feet.
Sacramento city officials also welcomed the study because it highlights remaining downtown sites and several others within the city as optimum for near-term development.
“This takes the angst out of it,” Sacramento City Manager Ray Kerridge said of the study. “In the past, when the state was looking at facilities, there had been a competitive aspect. We saw that with the West End project.”
Developers with sites on both sides of the Sacramento River competed for the huge West End project, which would have housed the California Resources Agency. Elected officials became advocates for specific sites before the state ultimately put the project on hold due to budget constraints.
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