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August 9, 2018

Mixed-Use Projects Spur Construction Growth Along West Coast

A recent Crane Index report shows that construction activity is booming across North America, with a high crane count specifically in the West Coast. Mixed-use developments are making major headway as the second largest market, making up nearly 25 percent of the construction activity in North America. According to the Crane Index, L.A., Seattle and Portland are leading the sector. In fact, Seattle has more than LA and San Francisco combined!

Construction consulting company, Rider Levett Bucknall, says Seattle has more cranes than another other U.S. city for the third year in a row. Having increased from 45 to 65 from December through May, this is the first time since the end of 2016 that the company counted more than 60 cranes in Seattle.

Some of the most notable mixed-use projects on the West Coast include:

Pier 70 – San Francisco
Pier 70 is a 28-acre waterfront mixed-use development that will offer housing, waterfront parks, artist space, local manufacturing and rehabilitated historic buildings. The project is a public-private partnership between developer Forest City and the Port of San Francisco. The project will deliver $750 million in public benefits including transit improvements. Pier 70 will feature 1,100 to 2,150 residential units, 9 acres of parks and open space, 1.1 million to 1.75 million square feet of commercial and up to 480,000 square feet of retail and services, arts and light industrial space and a new waterfront art facility. The project will be built in three phases over 15-20 years.

The Warner Center – LA
The development located off Califa Street is planned to include a residential structure and an office structure. The residential building is set to be five stories with a total of 206 units. The office tower would be 24 stories encompassing 220,000 square feet. The project will space more than 2 acres.

Cove – Seattle
Cove is a 60-unit, 50,000 square-foot mixed-use residential building in Seattle’s Capitol Hill neighborhood. The project was designed to a LEED platinum standard. The Cove sits on a 9,000-square-foot lot and features micro-retail and larger retail space on the ground floor.

Site A – Alameda, CA
A joint venture between Trammell Crow Residential and Alameda Point Partners, Site A will contain 800 residential units, 15 acres of parks, up to 600,000 square feet of commercial space and new transportation services and facilities, including a ferry terminal that will offer residents transportation to downtown San Francisco in just 20 minutes.

Don’t expect for construction to slow down any time soon. According to the American Institute of Architects, despite the labor shortages and increase in construction costs, construction spending for commercial buildings in the United State is projected to increase 4 percent in 2018 and continue to grow at that pace in 2019. Expect to see even more mixed-use projects pop up in the West Coast as developers continue to see a demand for these projects.

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