GREATER SACRAMENTO
As the pandemic advances trends toward ecommerce , industrial real estate in the Capital Region is thriving .
industrial vacancy rates are low , ranging between 2.1 and 2.7 percent . “( Speculative ) buildings within Roseville don ’ t stay spec long ,” says Allard .
During the pandemic , developers in Roseville have been processing land entitlements and cueing up development for 2021 . “ I expect to see continued interest in the City of Roseville ,” says Allard , “ ranging from new housing , new entertainment venues , continued industrial development and reuse of office space that includes co-working and renting of meeting space ,” he says .
Mike Mencarini , president of Sacramento-based Unger Construction Company , sees that possibility for office space , too . Unger Construction Company has worked more office projects than industrial projects in recent years , however , Mencarini says , “ We ’ re seeing clients being very conservative in terms of capital expenditures right now . Before the pandemic , we were doing a lot of tenant improvements for clients modifying their space to get the best usage from it . Now we ’ ve seen projects put on hold as they try to assess how to proceed .”
With a leasing market in flux right now and tenants looking for relief on current leases and questioning renewals , Mencarini says , “ By spring the new normal of the workplace should be more defined , helping businesses calculate course for their space . We may see a trend toward reconfiguring to be sensitive to social distancing with more private offices and barriers rather than the recent open and collaborative configurations . We may also see companies considering an office model where work and meeting space is scheduled . The new environment could look like hotel work space and meeting rooms booked on an as-needed basis .”
The merging of retail and industrial is expected to continue and that bodes well for McClellan Park and Metro Air Park , two of Sacramento County ’ s most noteworthy development opportunities . “ McClellan Park is faring very well through these unusual times ,” says Troy Givans , director of the office of economic development for Sacramento County . “ Interest and demand are strong there . As a former U . S . Air Force base , it has a unique ability to accommodate different land uses , from housing and hospitality to office and industrial space , and can flex with the market trends . As industrial becomes even stronger , McClellan Park can accommodate that .”
Metro Air Park is also in a unique position as one of the most sought-after locations for industrial and distribution facility development . This 1,900-acre master-planned commercial and industrial park offers significant advantages for developers and tenants . “ Metro Air Park has a great location at the intersection of major freeways , a new freeway interchange and a new finance plan , which creates sustainable demand for a whole new growth cycle going forward ,” says Givans .
The updated finance plan worked out by Metro Air Park , LLC and the Sacramento County Board of Supervisors reduced fees for future infrastructure funding and features a fee credit reimbursement component which allows reimbursement for areas of the park that must begin infrastructure to be able to build , which incentivizes construction . “ The fee restructuring makes Metro Air Park more cost competitive with other industrial parks not just in California , but across the western U . S .,” says Givans .
With strength and activity in the industrial sector and the flexibility to transition office space to the latest working configurations , the Capital Region is well-positioned to make the most of current and future development trends . Kelley sums it up , saying , “ The pandemic has accelerated ecommerce and retail with more demand across almost all industrial markets , and I also think we ’ ll see a return to the office , perhaps with much more flexibility between employers and employees , since you can ’ t build company culture without it .”
Jennifer von Geldern is a freelance writer who covers regional businesses , charities , events and the people who enrich our communities .
30 comstocksmag . com | 2020