Downtown High Rise Prepares for Future, Competition

SACRAMENTO-The owners of the Plaza Towers office complex here have invested $10 million in renovations and technology upgrades that they hope will ensure the asset’s allure for the foreseeable future. Built 30 years ago as the city’s first modern high rise, the 400,000-sf, two-building development is already attractive due to its location on the Capital Mall. But with a new 600,000-sf high rise going up next door, the owners decided to make sure their amenity package remained as sought after as its location.To that end, despite a vacancy of less than 5%, the ownership renovated all common areas, redesigned and expanded the lobby and, most important, created a wireless network that extends throughout the building and onto the building’s exterior plaza and adjacent parking garage. The name of the complex also was changed, to Plaza 555. Will Chang, one of the building’s owners, tells GlobeSt.com that the wireless network is about a lot more than just being able to leave your desk and maintain your Internet connection, it’s about enhanced security and next-generation communications technology. For example, Chang says that the wireless system has been integrated into the building’s system, allowing tenants to place security cameras wherever they would like, control thermostats, and of course, unplug their computers and still have Internet access. Looking forward, it also will accommodate the growing use of voice-over-IP technology that allows computers to act as phones as well.With 10% of the building coming available later this year due to consolidations in the accounting industry, the improvements will be put to the test. Chang says the upgrades and the associated increase in operations costs will put its full-service rates at the top of the market–about $3 per sf per year–but adds there are only three buildings that have comparable locations and Plaza Towers should be able to compete in terms of concessions, which essentially knocks 10-15% off the effective rate for larger tenants making longer-term commitments.”New buildings are putting in state-of-the-art everything, so we had to think ‘what do we have to do to compete with buildings that will be opening three years from now,” says Chang. “Modern businesses aren’t going to tolerate buildings that fall behind in comfort or security or communications capabilities; Wi-Fi is nothing new, but in terms of how you use it as a building owner, I think we are on the cutting edge.”