Despite declining retail vacancy rates, it’s still a tenant’s market throughout the Sacramento Commercial Real Estate landscape. The overall Sacramento retail vacancy rate dropped slightly to 9.8% during the 2nd Quarter of 2012, according to Voit Real Estate Services, who was recently quoted by the Sacramento Bee. This represents the second quarter in a row that commercial retail vacancy ended below 10%. According to the same source, commercial real estate vacancies within the Sacramento submarket of Carmichael reflect a much higher level of 11.3%. This phenomenon of higher retail vacancy rates often creates dramatic opportunities for businesses to sign commercial real estate lease transactions that are quite favorable to tenants.
An article by Sacramento Business Journal’s staff writer, Sanford Nax, suggests Bay Area investors continue to buy Sacramento commercial real estate for higher yields. The recent closing of a 13 unit apartment complex in South Sacramento by Brian Jacks, Regional Vice President of East West Commercial Real Estate, is discussed. Click here to see article.
Regional Vice President, Brian Jacks, of East West Commercial Real Estate was interviewed in by Sacramento Business Journal’s staff writer, Mark Anderson, in his exclusive article, “Galleria refinance hints at easing market.” Anderson writes, “The recent $275 million refinancing of the Westfield Galleria at Roseville not only demonstrates the mall’s economic strength — it also is a sign, some say, that the capital markets are finally beginning to free up.” Click Here to Read More.
Less than two months ago, I received a call from a San Jose based apartment investor who had become disenfranchised with the continued rise in commercial real estate prices throughout the Bay Area. A simple comparison of apartments for sale in both Sacramento and San Jose (within specific parameters) resulted in an average difference in cap rate (annual yield) of 3%. The San Jose apartments we considered offered an average cap rate of 5.7%, while the Sacramento apartments offered 8.7%. It doesn’t take a genius to realize that a higher yield on a commercial real estate investment means more cash in the investor pocket. Naturally, the investor decided it made more sense to invest in commercial real estate (apartments) here in Sacramento, which is once again becoming quite a predictable phenomenon, as discussed in this 1st Quarter 2012 Multifamily Investor Newsletter.
What an honor it was to be invited to participate in a Legislative Summit sponsored by the California Asian Pacific Chamber of Commerce at the California State Capitol in Sacramento. It’s 3rdannual event, held on June 20, 2012, was effectively a pro-business lobby day where 5 small groups, each with four business leaders, descended upon the offices of more than 50 California State Senators and members of the State Assembly. The purpose of these meetings was to offer support in terms of pro-business legislation that is are currently circulating in the State Capitol of Sacramento.
East West Commercial Real Estate is proud to announce its facilitation of a new 3-year office / special purpose lease for Veritas Church in Roseville, CA, effective July 1, 2012. Veritas has been led by Senior Pastor Erik Meyers for the past four years, since inception in 2008. While Veritas has been blessed with the ability to share space in other non-profit facilities, it has been difficult, but a necessary reality to relocate basically once every year since it all began. Veritas’ most recent facility was subleased from Cornerstone Christian School at 202 Bonita Street in Roseville, CA. At a Veritas Church membership meeting held on the evening of June 3, 2012, a collective sigh of relief was heard as Pastor Erik discussed the new lease opportunity with his congregation… finally, a place of their own.