Quote:
Originally Posted by Majin
That still doesn't make sense. You can make a lot more money in LA and SF than almost every city in the country. Sacramento has higher rental prices than a lot of places and higher demand. I just posted that chart that YOY increases in Sacramento are more than every other city. Yes you can argue the money isnt here, but my question is why given that other cities with LOWER rental cost and LOWER demand see more construction than us.
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Competition from the SF Bay area?
I'm not saying residential and mixed-use projects cannot get built in the grid. I'm merely opining that larger, more risky projects, such as the Whole Foods, likely have trouble getting financed. Sacramento rents and sales are skyrocketing, and that's great for property owners. However, are those rents and sales prices high enough to justify risking lots of money building the larger, exciting projects most of us want to see? Keep in mind, they Bay Area is just an hour or two away.
Certainly, a few large projects will get built. But, as Sacramento's history has shown, more plans will get tabled than completed. A basic plan for grocery and residential at that site has been kicked around for a while. Too long. We're well into this supposed recovery, and only the parking garage is getting built. What does that tell you? What does it tell Whole Foods? It looks like they simply got tired of waiting and figured they better find a less-complicated way into the central city.