NAPA
New Building Projects Reflect
Local Prosperity and Optimism
Napa County
New Developments Contribute to Rising Lease Rates
Lease rates in Napa County reflect optimism in the retail and office rental sectors. In just over a year, rates per square foot for each of these divisions have increased between 15 and 20 percent. Retail rates are now $15 to $36 per square foot, and office space is going for $12 to $36 per square foot. Industrial rates have remained steady at $9.36 to $13.20 per square foot during the same period.
Downtown Napa
Construction is underway in downtown Napa for the DeSimone project at Third and Main streets. This will consist of 40,000 square feet of retail, 30,000 square feet of office space and 50 residential units along the Napa River. The approximately 40,000-square-foot Wiseman retail and office project, located at Clinton and Main, has been approved as has a new hotel on First Street. Also on First Street will be the new Rossi/Zeller retail and office building. Completion dates for these projects span 2007 and 2008.
The Carnera Corporate Center office condominum project
South Napa
Near the Napa Airport, the Carnera Corporate Center office condominium project is well underway as is the new Mendocino resort.
Napa Gateway Business Park is filling up quickly. Elaine Bell Catering has just moved into its new building in the development. Sales have been brisk in the last year or so, with prices increasing between 10 and 20 percent. Only a few open parcels remain.
The new Meritage Resort and the adjoining Vino Bello Resort (the latter a timeshare resort operated by Shell Vacations) opened in July. The gorgeous Carneros property includes wine caves, convention facilities, a spa and a restaurant.
American Canyon
American Canyon is seeing continued build-out of commercial properties, including Canyon Corners, an approximately 50,000-square-foot retail center expected to be completed by September, and the Napa Junction project, which will include a Wal-Mart.
Rents in the new projects start at $2.50 per square foot. Meanwhile, commercial land prices in the area have continued to escalate and now stand at $20 or more per square foot.
Up-valley
Up-valley, we’re seeing less activity, but the slow turnover is keeping rents near the upper end of the scale. The big news here is Pacific Union College and Triad Communities’ agreement to jointly develop surplus land owned by the college. The total amount of commercial and residential uses will be decided through community meetings.
Summary
Looking forward, Napa’s limited amount of available land should continue to boost lease rates as developers and businesses endeavor to enter the markets. Future development of the Gasser property, located just outside of downtown Napa on the corner of Soscol and Imola, will provide potential tenants with more retail, office and residential choices.
