About 2 1/2 years after GPR Ventures bought a South Natomas office property of more than 200,000 square feet, it's completely full.
Brokers with CBRE Sacramento said Metro Center, at 2700 Gateway Oaks Drive, hit 100% after a pair of recent lease deals.
"GPR Ventures, the ownership group that purchased the asset approximately 2.5 years ago, did a major overhaul of the project to create an amenity rich, 'office-campus' environment," said Tony Whittaker, a senior vice president with CBRE, in an email.
Among the improvements, the Campbell-based owner made were a new fitness center, upgraded cafe, bike share program and new outdoor seating and collaboration areas, Whittaker said.
Insurance firm Trean Corp.'s lease of 4,000 square feet and a 2,000 square foot expansion by an existing tenant put the property at totally full, according to Whittaker.
In late 2017, GPR Ventures bought Metro Center for $36.8 million, with occupancy of about 80% at the time.
Since then, CBRE brokers Whittaker and Rick Henry have helped sign about 80,000 square feet of leases in six transactions, he said.
Looking forward, many experts believe office space demand will change, as industries continue to grapple with social distancing rules and the prospect of more people working from home.
Whittaker said he's optimistic, noting the Sacramento region's office market is still in the strongest shape it's been in 20 years even after the COVID-19 pandemic hit March.
"We'll see some companies work more remotely causing negative absorption, we'll see some companies expand office space to get away from high-density space programs causing positive absorption, but Sacramento's office market should be more sheltered than other major metros from negative effects of COVID-19," he said.
"Like everyone, we'll endure some pain, but we're a resilient city and that will be evident in the months to come," he said.Download PDF