According to the Sacramento Business Journal, the Vanir Tower could go taller. Really? Seems far fetched to me considering they have not spent one cent to start the entitlement process with the city in the year since the the tower was proposed. What's also strange is that the Vanir Group says that entitlement process will take at least two years when in reality it should take no longer than 9 to 12 months.
I've been watching this whole developer/proposal/publicly/flame-out process in Sacramento for over 30 years now and so far this proposal sounds no different than many other developers who stalled out but told the public a different story. I'm using history as my guide, but I hope I'm wrong. The comments I received from my last post about this tower were pretty brutal, one guy told the developer to put your money where your mouth is... maybe they will now?
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2 comments:
Don't you find the timing of the Sacramento Business Journal article convenient? Did the last LIUS blog post russell a few feathers with the Vanir people? Looks like they are doing their best to tap down any negative speculation. Build it higher, tell our local negative, anti-urban, ball-less market analyzers to go and fuck themselves and build it higher. BTW, this blog suck too!
This whole thing is a publicity stunt by Jones Lang LaSalle. Last August Greg Levi said rents would have to rise 30 cents a SF before new construction makes sense. Maybe they hope rents will rise that much in the next two years while they stretch out the entitlement process. In the same article, Chris Strain for Cushman & Wakefield said that getting financing would be all but impossible unless the new building is nearly a third pre-leased. And those pre-lease tenants better be a bank or some other stable institution that would sign a long-term lease. Mmmm, alot to overcome when there is currently 813,617 SF vacant class A office space availble in downtown alone.
Mark, please tone it down :)
http://www.jllblog.com/edge/heres-what-it-will-take-to-build-new-office-towers-downtown/
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