ACRE / BOMA OFFICE GUIDE
The Ice Blocks : An Ideal Office Environment
The success story of the Ice Blocks development along the R Street corridor in Midtown Sacramento has set a unique precedent for infill development in the region . The threeblock office , retail and residential project is the area ’ s largest cluster of creative development that marries form , function and fun into one ingenious economic ecosystem .
“ A major goal of the Ice Blocks was to create a model urban , transit-oriented , mixed-use development that puts Sacramento on the map nationally for innovative design , brings marquee new retailers and restaurants to our city and ( creates ) a true walkable community ,” says Michael J . Heller , president of Heller Pacific , Inc . and managing general partner of the Ice Blocks .
The road to success for this pioneering project was far from easy . In 2005 , developer Mark Friedman acquired the century-old Crystal Ice plant on R Street between 16th and 18th Streets with big plans to develop the property while also preserving its history . The 2008 recession put those plans on hold until 2013 , when Heller got involved to help the project come to fruition . ( Friedman calls Heller “ the creative force ” that made the project happen .) In November 2015 , the Ice Blocks was nearing completion when one of its historic buildings , Block 1 , burned to the ground . Undeterred , Heller , Friedman and key investor Kevin Nagle helped the Ice Blocks rise like a phoenix from the ashes into one of the region ’ s most exciting mixed-use developments , which completed construction in 2019 .
In addition to thousands of square feet of restaurants , retail and 142 urban loft-style residences ( which Heller says will soon be joined by additional apartments that will be built on the parking lot of Block 3 ), the Ice Blocks is home to three levels of industrial-chic office space housed in two buildings connected via skybridge . The office block also features 100 secured parking spaces as well as proximity to additional parking , light rail and public transportation . Like the rest of the development , Heller made the aesthetic choice to reuse some of the buildings ’ historic heavy timber in the design , which he says “ gives the project an authentic soul very hard to duplicate with all-new construction .”
But it ’ s not just the stunning design and easy access to transportation that makes the Ice Blocks offices ideal for all kinds of tenants . “ I think the most compelling element for the office tenants ( is ) being in such a creative environment with like-minded people sharing ideas ,” Heller says . “ There is a spirit of collaboration that permeates Ice . Of course , having all the fun restaurants ( and ) bars is a real plus as well and does help these companies recruit and retain talent .”
“ If we continue on the current path that we ’ re on now ... I think we ’ re going to have a ramp-up over 2021 and 2022 is going to look really good for the office sector .”
Greg Aguirre President and CEO , Capital Rivers Commercial
under 10,000 square feet are still in high demand and rents have remained stable , although vacancies are taking longer to fill .
“ If anything , there ’ s going to be a need for more office space ,” says Greg Aguirre , president and CEO of Capital Rivers Commercial , a commercial real estate broker . “ I think we ’ re going to start to see that towards the end of this year and early next year . If we continue on the current path that we ’ re on now with the vaccine , and with interest rates and Treasury rates being low , I think we ’ re going to have a ramp-up over 2021 and 2022 is going to look really good for the office sector .”
Many post-pandemic offices will likely have a different look than they did before workers were sent home . Technology like touchless doors , kiosks that monitor employees ’ health and new ventilation systems will play a key role in helping employees feel more confident about their safety and calm landlords ’ fears about COVID-related liability . Another trend accelerated by the pandemic will be allocating more square footage per employee , which will also help drive the need for more space .
“ The trend over the last couple of decades has been ( to ) lose the private offices , create more living area ( and ) be a more open area ,” says Gregg Mason , senior vice president of development at Jackson Properties , which owns and manages over 1 million square feet of office space in the region . “ All of a sudden , you have someone in a bunch of six-by-six ( foot ) cubes — that doesn ’ t work anymore . They may have to be 10-by-10 cubes . So from that perspective , a company with the same number of people could require more square footage .” DeAngelis agrees that “ density will need to change , that people coming back to the office will want more personal space . I don ’ t see that cube farms will be standard office design going forward .”
— Jessica Laskey
74 comstocksmag . com | April 2021