Living in Sacramento, its easy to take for granted that we actually reside in the State Capitol of California, which represents the 9th largest economy in the entire world.  At times, a healthy reminder is in order to draw attention to this remarkable privilege that we all share.  Important matters are considered and decided every day inside the venerable halls of the State Capitol.  We are certainly fortunate to now have our very own local correspondent, Christopher Arns (Sacramento Business Journal), who has already written over 40 stories covering legislative activities surrounding the State Capitol since January.  

It is incumbent upon citizens to communicate with legislators to ensure their voices are heard.  It is within this context I participated last week in the 4th Annual Legislative Summit at the State Capitol, hosted by the California Asian Chamber of Commerce.  Pat Fong Kushida (President & CEO of the CalAsian Chamber) led four teams who met with over 40 legislative offices to discuss pro-business issues including workforce development, taxation, economic development, and regulatory reform.  It was a terrific day with open dialogue and a distinct willingness to come together.

California State Senator Jim Nielsen (third from left) with CalAsian Chamber lobby team

One such meeting took place with Senator Jim Nielsen (see picture above), where team representatives connected on a personal level, sharing concerns and ideas for improvement in various areas.  This scene repeated itself many times throughout the day as we walked the halls, transitioning from one meeting to the next.  In a fitting culmination of events, the CalAsian Chamber lobby teams capped off the evening with a tasteful reception with dozens of legislators and staffers, along with community and business leaders.

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Local Sacramento food truck operator, Andrew Blaskovich (aka “Drewski”), has been on the Sacramento scene for over two years now, serving up gourmet sandwiches to hungry crowds.  With well over 15,000 Twitter and Facebook followers, he is most certainly a force to be reckoned with and has been recognized by Food Network as one of the Top 10 food truck operators in America.  Drewski’s has received rave reviews in local print and media and is currently ranked #1 on the KCRA “A” List and was voted #1 best Food Truck by Sacramento News & Review

In a growing trend, the success of food truck operators has convinced some to open brick-and-mortar locations as well.  For Blaskovich, his foray into the brick-and-mortar restaurant business started with a Midtown Sacramento commercial property operated by Republic, a large sports bar, located across from the Sacramento Memorial Auditorium.  He partnered with the owners to provide his signature dishes and experienced tremendous success ever since.  Drewski’s second brick-and-mortar location is essentially a small café positioned within the lobby of a commercial office building on Iron Point Road in Folsom.  However, Drewski’s third brick-and-mortar really takes the cake.

Click here for related articles written by the Sacramento Bee, Cowtown Eats, and Sacramento Business Journal.

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Sacramento commercial real estate investors who own property near the proposed site of the Downtown Arena are now one step closer to potentially significant increases in value.  The Sacramento City Council voted 7-2 in favor of approving the arena financing proposal, which creates the opportunity for investors to form a competing bid to acquire the Sacramento Kings.  News 10 caught up with Sacramento commercial real estate broker Brian Jacks to find out what this could mean for commercial properties within the immediate vicinity of the proposed arena.  Click here for News 10 story

Sacramento commercial real estate

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As reported in a recent article by the Sacramento Business Journal, “a new Brookings Institution study ranked 20 U.S. metro areas by the number of patents per million residents from 2007 through 2011.  All, including Sacramento, are home to major research universities.”  Clearly, UC Davis has been a major contributing factor to the Sacramento region’s success in this area.  While Sacramento barely made the cut at #20 on the list, it proves the region is certainly in the game and ripe for an ever-increasing market share of patents.  No surprise to anyone, our nearest competition, San Jose and San Francisco, ranked #1 and #3 with 1,988 and 555 patents, respectively.  However, when totaling the patents for all three Northern California cities, it represents over 34% of all patents nationwide.

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The California Legislature recently approved Senate Bill 1186, which is designed to curb the misuse and abuse of California’s ADA (Americans With Disabilities Act) laws and protect business owners. The catalyst driving the Legislature’s action was what the Bill’s authors described as a serious problem in which claimants and attorneys file “shakedown lawsuits against businesses in an effort to gain an easy payday with no intention of improving access for the disabled community.” Landlords and property owners were often faced with exploitive demand letters for money and would choose to pay the claimant simply to avoid the time and expense of dealing with litigation. 

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South Sacramento’s Southgate Plaza is once again the subject of serious interest in commercial real estate circles.  First, it was the unfortunate departure of Walmart in 2009, Vacant Commercial Real Estate in Sacramentowhich resulted in the closing of its 135,000 square foot retail store on the southeast corner of Florin Road and Franklin Blvd.  The approximate 300,000 square foot commercial shopping center was decimated as remaining tenants gradually moved out due to lack of foot traffic.  Following a foreclosure on the property just one year later, the new operator and Sacramento commercial real estate brokers have been desperately trying to attract new tenants (see related article for progress update). Unfortunately, Walmart still controls the lease and is now doing its best to block a subsequent retailer from taking over its space for competitive reasons.  County of Sacramento officials are furious and pressuring Walmart to reconsider its position for the good of the community.  Brian Jacks of East West Commercial Real Estate’s Sacramento office was quoted by Kelly Johnson in an article, published in the Sacramento Business Journal.  In addition, News 10 ran this story about the subject.  

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Empty restaurant buildings continue to sit idle throughout much of the greater Sacramento area.  Not so for the old Jolly Burger located at 7150 Auburn Blvd (historic Route 40) in Citrus Heights.  Under a new operator, the local burger stand will re-open with the same name on Saturday, November 10, 2012.

Jack and Sue Darting were the original proprietors of Jolly Burger for many years and worked hard to create a memorable dining experience.  In addition to friendly staff, customers were always greeted by a three dimensional cheesy hamburger affixed atop the building… one of Jack’s personal creations. The Dartings offered good old fashioned quality food including burgers, sandwiches, frosties, sundaes and shakes.  Their food was always a hit with the locals and especially students from Sylvan Elementary and Middle School, right across the street.  One can still find amazing consumer reviews on various websites like Yelp, Urban Spoon and Insider Pages.

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The last few years of economic distress has clearly taken its toll on the Sacramento commercial real estate market.  One prime example involves the 2009 closing of a 130,000 square foot Wal-Mart facility in Southgate Plaza, located on the southeast corner of Florin Road & Franklin Blvd in South Sacramento.

Sacramento Commercial Real Estate Digital Sign 2

As the main anchor for this 300,000 square foot community center, Wal-Mart’s departure ultimately created a mass exodus of tenants who had successfully lived off its draw of local shoppers for many years.  Holes began to appear with “FOR LEASE” signs being posted by a property manager anxious to re-lease the empty spaces.

Click here for related story by Sandy Nax of the Sacramento Business Journal.

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Brian Jacks, Regional Vice President of East West Commercial Real Estate, was recently quoted in the Sacramento Business Journal for helping Sacramento retail franchisees achieve better commercial lease rates in this tenant’s market. Click Here to read article.

Sacramento Commercial Real Estate

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.

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