Secondary Markets are First in Line for WFH Types

Development in California’s secondary markets is continuing to build on the surge of interest in the past year, evidenced by the latest planned community, Lagoon Valley in Vacaville. Similar Western U.S. markets are poised for the ongoing recovery or boom, depending on the given market’s situation, according to economists and consultants.

“The demand for housing and commercial space in nearby close-in markets in the West is showing great resilience, especially those that are commute-distance from traditional job centers,” says Kelvin Tetz, national practice leader for Moss Adams real estate accounting consulting group. “Builders and developers with property ready for move-in or approved sites getting underway are reporting strong interest from existing local market growth and also the expansion of the untethered work-from-anywhere economy.”

Whether labeled a secondary or tertiary growth-market, Vacaville and the I-80 corridor have attracted a steady stream of people and firms priced out of urban markets or those who only need strong Internet when choosing new housing and work locations. By way of example, the 840-acre Lagoon Valley community unveiled by Triad Development this month is leveraging its regional proximity, work-from-anywhere trends and all-in-one pedestrian-centric design.

“This next phase for Lagoon Valley is really fulfilling the vision for a balanced mixed-use community, laid out in our early planning work on the conceptual design,” said Casey Case, president of Gates + Associates landscape architects. “The long-term thinking and design approach at Triad is aimed squarely at today’s homebuyers and commercial tenants who want walkable, sustainable, environmentally sensitive places to live, work and play.”

Lagoon Valley’s office/business component, Ascend at Lagoon Valley, is attracting companies including life-sciences firms seeking a small-campus atmosphere with nearby housing, amenities and regional highway and rail-transit access. The benefits include 700,000 square feet of Business Village land positioned to attract biomanufacturing companies.