GRID Magazine - Spring 2018

S A CR A M E N T O CO M M E R CI A L R E A L E S TAT E , DE V E L O P M E N T, A N D CU LT U R E M u r al : J o s e D i G r e g o r i o

10

When is the next high-rise being built?

ISSUE THREE

18

How to move your business to the Grid!

35

Some words from our friend Ali Youssefi.

TURTON

WRIT TEN, PHOTOGR APHED, AND DESIGNED IN-HOUSE BY THE TURTON TE AM

SPRING 2018

LIVE. WORK. PLAY. SUMMER 2018

916.573.3300 - TURTONCOM.COM

TURTON

HELLER PACIFIC

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2

A f ew not es, sc ribbl es, a nd mus i ngs b efore we b egi n.

APRIL 2018

A hint of emotion Aerial imagery Alcohol Art Bicycles Big words Black-and-white C50 M50 Y50 K100 Cement City planning Civic engagement Coffee Construction Cringey jokes Decent jokes Deleted “paradigm” Digital tech Dress shoes Economic forecasts Ego-stroking Fine linens Fishy punctuation Games Gender dynamics Good food Hidden surprises Honest advice Ice cream Illegibly-small text Indirect pandering Invented idioms Large figures Lines Lists Music Original research Pride Progressive ideas Semi-colons Solid analysis Subtlety Text on photos The Animal Kingdom Theater Tower Bridge Trees Visual data Wood beams Written with love

CONTENTS 04

09

COWORKING: THE NEW BIG OFFICE FORMAT

THE CAR DEPENDENCY SPECTRUM

06

ART AS A BAROMETER FOR GAUGING CITY HEALTH

10

NEXT HIGH-RISE?

22

18

16

GUIDE TO A NIGHT OUT IN SAC

SO, YOU WANNA GET TO THE GRID?

ABOUT PROP 13

27

OUR FASHIONABLE FRIENDS

24

BRICK & MORTAR VS CLICK & ORDER

33

35

SACRAMENTO = CALIFORNIA’S INVESTMENT FRONTIER

A CHAT WITH ALI

43

40

BITS & PIECES

LOOKING AT RENT CONTROL

44

ABOUT TURTON

A Groovy Playlist From the Turton office!

Here at the Turton office, we take our jams pretty seriously. Here’s an awesome, funky, summer/nu-disco playlist put together by DJ Mudge, our in-house mixologist.

Closer - Song for the Lovers Bag Raiders - Friend Inside Rhyemusic - Summer Days (Roosevelt Remix) Promises Ltd. - Days of Lavender (Gigamesh Remix)

Bearoid - Enemy Night Drive - Rise and Fall (Classixx Remix) Raleigh Ritchie - Bloodsport (Hurley Mower Remix) Les Loups - White Cliffs

Doombird - Fog Rolls In Future Classic - Pizza Guy Marcus Marr - Birthday Card Louis Futon - End of the Night

DEEP THOUGHTS FROM

TURTON

KEN TURTON

T U R T O N CO M .CO M 916.573.330 0

24 0 9 L S T R E E T, S T E 2 0 0 , S A C R A M E N T O , C A 9 5 816

KEN TURTON - PRESIDENT

PRESIDENT

KEN TURTON 916.573.3300 | KENTURTON@TURTONCOM.COM

VICE PRESIDENT

VICE PRESIDENT

SENIOR DIRECTOR

SENIOR DIRECTOR

SENIOR DIRECTOR

DIRECTOR

AARON MARCHAND 916.573.3305 | AARONMARCHAND@TURTONCOM.COM

SCOTT KINGSTON 916.573.3309 | SCOTTKINGSTON@TURTONCOM.COM

JON LANG 916.573.3302 | JONL ANG@TURTONCOM.COM

JOHN MUDGETT 916.573.3306 | JOHNMUDGET T@TURTONCOM.COM

BROKERAGE

VICE PRESIDENT

JOSIE JERDE 916.849.1514 | JOSIE JERDE@TURTONCOM.COM

TYLER JERDE 916.990.4949 | T YLERJERDE@TURTONCOM.COM

PATRICK STELMACH 916.573.3314 | PATRICKSTELMACH@TURTONCOM.COM

ASSOCIATE

SEAN TOOKE

VP OPERATIONS & MARKETING

CREATIVE DIRECTOR VP PROPERTY MANAGEMENT

SENIOR DIRECTOR

BROOKE BUTLER 916.573.3301 | BROOKEBUTLER@TURTONCOM.COM

COREY LAU 916.573.3304 | COREYL AU@TURTONCOM.COM

MELODY JONES 916.496.1527 | MELODYJONES@TURTONCOM.COM

NICOLE CLANCY 916.546.0334 | NICOLECL ANCY@TURTONCOM.COM

Charming Midtown Victorians on J Street.

M A R K E T I N G / O P E R AT I O N S

916.849.1514 | SEANTOOKE@TURTONCOM.COM

PROJECT / PROPERT Y MGMT

As the proud owner of a boutique brokerage firm in Sacramento I am the walking definition of “Big Hat, No Cattle.” As such, I enjoy an inexpensive quality lunch as much as anybody. Maybe more. With eight agents and employees in our Midtown office averaging 31 years in age I consider myself extremely well informed about inexpensive generously portioned feeding opportunities in the ‘hood. Inside our four walls we make particular note of those proprietors providing an amazing offering for under $8.

Of course, as a commercial real estate business and property owner I have different favorites for different moods and/or circumstances: For instance, when I receive my annual insurance renewal bill in the neighborhood of $25,000 each year I’m looking for a feel-good carb load at a real down and dirty bargain. That’s when I go to I Love Teriyaki on 21st and N. When one of my agents closes that $50,000 land transaction that took over 15 months, two environmental reports, three board approvals, $900 in sign costs and we get that $832 check from escrow, well… it’s time to take the entire firm out for a special, highly-affordable celebration. Round Table Pizza all-youcan-eat for $7.95 per person.

When your electrician forgets to turn the primary panel switch back on to your subterranean sewage pump and your notification is the distinct smell of spillage emanating from your overflow valve… well, nothing says stress relief like Mexican: Azul at MARRS. Especially if it’s Wednesday. Taco Salad and a soft drink $7.25! If you get the $2,000 clean-out bill the same day you have the option to grab a margarita.

When you’re $20,000 deep in marketing expenses and have four signed Letters of Intent for your new big listing and it burns down you know it’s time for the biggest, juiciest, cheapest burger meal you can find and, for me, I find it at Suzie Burger. Double Deluxe Cheeseburger, $6.25. Yes, please.

When seven tenants-in-common are selling a property over the course of nine months and on the last day of escrow the one with the least ownership percentage decides they aren’t going to sign closing documents you just gotta have Thai Food and no one does it better for under $8 than Drunken Noodle.

When you receive a notice your parking lot is 2 degrees off ADA compliant and the cost to fix it including civil drawings is $80,000 its time for the cheapest meatiest sandwich with avocado you can find for under $8 and you can find it at Bon Air Market + Deli. #29… every time.

These are just a few of my favorites. I have at least a dozen more, each for different occasions and some, of course, I visit monthly on the dates of certain recurring expenses. The $8 lunch (or less!) is just another great reason we love working in the urban core. Work is stressful. Life is stressful. But there’s something about walking through beautiful tree lined streets and grabbing a great meal for under $8 that always makes it a little better.

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Do y ou w ork w el l w ith others ?

T HE O F F I C E F O RM AT OF THE FUTURE?

COWORKING AARON MARCHAND - VICE PRESIDENT

Googling “coworking” yields over 124,000,000 results.

Shared offices are dramatically changing the urban office-scape. It was once assumed that a small company would have to settle for a less-than-ideal work environment to get by due to its size and lack of “credit.” Now that same company can work alongside several others – all using the same workplace and local amenities as a Fortune 100 company.

The coworking concept feels relatively new to most people. Those who have heard of coworking environments might immediately think Regus, one of the original coworking companies founded in 1989 and currently operating over 3,000 locations in 120 countries. Their model has been a huge convenience for travelling employees who needed an office space or address to work from while on the road.

Today, due to what we can call “the WeWork ripple effect,” this coworking model has taken the global office market by storm. The work environment is now – believe it or not – fun! Companies are benefitting from a high-end work space with access to a diverse set of other professionals at a low cost entry point.

Additionally, the lease terms tend to be very flexible and pricing is based on used desk space with all-inclusive benefits. This offers all companies the opportunity to be a part of a larger community regardless of their wealth or anticipated growth.

So what does a WeWork-style coworking space look like?

The old school private offices confined by four walls of sheet rock are no more – the walls have been replaced with glass to discourage workers from holing up in their workspaces and ignoring each other. Complex reefs of beige cubicles are simplified to sleek, open-desk environments with like minded creatives sitting across from each other. Companies diverse in age, size, or economic strength are mixed into the same work environment.

Concrete, glass, wood, steel, and funky wall patterns saturate the new work place.

Breakout rooms, high-tech conference chambers, cafes, coffee bars, beer fridges, snack cabinets, lounge areas, bike storage, music systems, and art are now standard amenities. This carefully curated office environment not only attracts the best talent, but also encourages collaboration and cre-

ativity with its positive vibes.

This is the new office.

Locally, we are beginning to see these fresh new work spaces. The Urban Hive currently has four locations spread throughout the grid. Also clustered in the grid are The Trade Coffee + Coworking, Outlet Coworking, and Capsity. Each space offers a unique experience and occupancy has been high. As this trend grows, we can expect to see additional operators enter the market.

Current owners of office buildings can ride this wave depending on how their building is currently built out. If a Landlord has vacancy, but also the right infrastructure, they themselves can offer a lease with a structure similar to a coworking model while hybridizing the space with a long term anchor tenant. Call me for more information.

The momentum of newer companies like WeWork, Central Office, and Canopy cannot be ignored. Coworking can truly be described as a community.

You and your company are not alone.

SOME WORDS FROM A FRIEND O N T H E M AT T E R

“Coworking spaces offer instantaneous access to trustworthy feedback and assistance that neither social media nor websites can adequately provide.”

- Rob McAllister Vice President, Halldin PR

Bottom Left: WeWork Promenade Commons in LA. Bottom Right: The Trade’s coffee bar. Middle: the Trade on K Street. Top: WeWork Culver City Commons, also in LA.

COMPLEX PARKING SITUATION?

We can help your business find their spots.

916.573. 3 30 0 tur tonc om.c om

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I s t here a rel at ionship b etween a rt a nd rea l es ta te i nves ti n g?

TH E R E LATI O N SHIP BETW EEN ART AND A

HEALTHY CITY JOHN MUDGETT - SENIOR DIRECTOR

G Generally, real estate investing doesn’t seem to relate to art very directly. But a meeting I had recently changed my mind on the matter.

Left: Patrons viewing the classics at The Crocker Art Museum. Right Top: Tesco-Flex, a guerrilla art piece which took over an electrical fuse box in charming Boulevard Park.

Right Bottom: The Art Exhibit at Flop Haus titled My Dearest Lover (photo from insideout.org).

Background: Large mural behind MARRS.

B I G A RT E V E NT S C O M I N G U P

Wide Open Walls:

Aug 9th - Aug 19th

Sac Open Studios @ Verge: September 6 - 30th 2nd Saturday Art Walk:

2nd Sat of Every Month

Concerts in the Park:

Every Fri May 4 - July 27

Midtown Farmers Market: Every Sat @ MARRS Crocker ArtMix:

Every 2nd Thurs

I got a call from an out-of-town mainstream. developer who was interested in Art Hotel and Art Street proved Sacramento and wanted to learn there is a larger audience for more about our market. We met experiential art with lines out at Old Soul Coffee planning to the door. Wide Open Walls is discuss economics, trends, and bringing art to the masses with the best urban infill opportuhuge murals and generating a nities. The usual. But, halfway tremendous amount of publicthrough our drinks, his quesity for the local art scene. The tions became more specific and Crocker Museum and Verge Cenless on-topic. ter of the Arts are barely meeting “Are there any concerts nearby the increased demand through tonight?” … “What’s your favorite their highly curated exhibits sculpture in town?” … “How did and events. And thousands of Wide Open Walls go last year?” dancing partygoers at This is … “What percentage of your inMidtown boogied in the shadow come do you spend on art?” of the Sacramento skyline, as if We ended up talking mostly shedding the perceptions of a about our art and local artisans. government town with the staWe discussed the creativity and tus quo as inspiration. energy of a young city looking to There are significant investestablish itself ments being as a compelling This developer was using the made to support alternative to this movement. larger metros in art scene as a barometer for Warehouse ArtCalifornia. ist Lofts, now the health of Sacramento.

My client proseveral years posed that creativity and art since its revitalization, has flow from abundance. When the helped to provide a focal point crucial needs have been met, the as a hive of creative energy. The individual is allowed to think CLARA Center for the Performing philosophically about improving Arts was recently renovated, ofone’s existence. A city that has fering space for ballet practice a strong creative identity has a and performances. Locals are magnetism that attracts fresh inexcited for the gorgeous new B dividuals, businesses, concepts, Street Theatre, which recently events, and experiences, he said. opened. Coming soon, the overMuch the way a doctor takes haul of the Community Theater your vital signs to measure your and the Convention Center is in body’s health, this developer was the works. using the art scene as a baromePolitical support is there to bolter for the health and trajectory ster recent efforts and momenof Sacramento as a City. A prutum recognizing that continued dent developer or investor aims investment helping to facilitate to determine where we are along the evolution of a conservative the continuum of progress and government town to an activatdemand – and the art scene gives ed and robust city. A Creative them a strong indication of that.

Economy Pilot Project garnered It wasn’t that long ago when hundreds of applications. Their a question about the art comconclusion is that there is robust munity would have been cause demand and tremendous interfor a touch of insecurity. There est from the local arts communiwouldn’t have been much to talk ty as well as a need to fund these about. Only recently has the apendeavors. preciation for and awareness of There is a crop of visionary artour local art community begun ists and art leaders that are shapto grow and allow our creatives ing the conversation. Compared to introduce themselves to the to larger cities, Sacramento of-

fers an opportunity for artists to get involved and find a seat at the table. On a smaller level, our community offers a place where enterprising artists can open their own galleries or paint murals to showcase their art in heavily-trafficked locations.

Additionally, Sacramento’s food and beverage scene is more creative than ever. Every dish at Brad Cecchi’s Canon is a work of art. KRU’s ambiance and plating has many locals ranking it the best sushi in town. And those looking to suck the marrow out of life – literally – will enjoy the small plates at Empress Tavern.

New standards of thoughtful and tasteful design have local business owners working with interior designers, local furniture makers and incorporating artwork into current and future projects. Highly-regarded restauranteur Sam Marvin noted that “it feels like Portland or Seattle did 10 years ago. There’s a craft culture here, and you see chefs starting to branch out and do their own thing. It’s a phenomenal opportunity to be in Sacramento now.”

Start-ups, businesses growth, quality of life, entertainment options, community, and experiences are all interconnected. Art ties many of these elements together to provide a more colorful picture. It is a medium to access humanity and people seek this out where they live and travel.

The ecosystem that creates and sustains art is intricate and complex (and messy at times), but Sacramento has all of the components needed to allow this community to flourish. The last 5-10 years have created a sound foundation with articulate lead-

ers visionaries creating engaging art events that bring awareness to art. Audiences, diverse in all aspects, are flocking to block parties with music and artisans in Midtown and Oak Park. Civic leaders are involved with grants to bolster the creative community and journalists are helping create awareness though thoughtful articles and coverage.

Continued support and growth for the arts is vital. While the recent change in attitude is cause for celebration, there is a significant room for growth. It is important that we continue to build on this foundation with a long-term vision. Support your local arts and artisans. Next time you have the opportunity, explore the local art community and find an artist whose style you like. Reach out to support them with some encouragement and, if you can, purchase a piece of art. Sacramento has an emerging and diverse art community that celebrates our city’s approachable authenticity and urban identity.

In my coffee meeting with this developer, I was not quite as articulate in describing the Sacramento art scene. Instead I pointed out the small window exhibit regularly updated at the Flop Haus called The InsideOut as we happened to walk past it. Tucked in a bay window of a charming old Victorian, where people still live, keep in mind,

the exhibit featured a surreal scene: three cellophane humanoid figures with old computer parts worked into their anatomy, as if being overrun by electronic tech. The middle figure looked panicked and the whole piece was bathed in magenta light. The developer chuckled.

“This is all I needed to see.”

S M A L L E R O F F IC E S PAC E S AVA I L A B L E

TURTON Tur ton Commer cial - 916.573. 3 3 0 0 - Tur toncom.com P i c t u r e d : 2 13 1 C a p i t o l A v e n u e / M u r a l b y A d n a t e

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I s t h e main dif f erenc e between a good ci ty a nd a b a d ci ty how yo u t rav el abo u t it ?

A R E Y O U READY TO LIVE IN THE GRID

CAR-FREE? PATRICK STELMACH - DIRECTOR

PARTING ADVICE

PARKING AT NIGHT

COMMUTE BACK HOME

TRAVELING TO LUNCH / COFFEE

TRAVELING TO MEETINGS

PARKING AT WORK

COMMUTE TO WORK

CAR

CAR

CAR

DEPENDENT

LITE

FREE

Average commute in Sacramento region is 30-45 minutes.

Short commute or carpool or Uber/Lyft or park-n-ride to RT station.

Ride your bike or walk because you live close to work.

Office building parking lot or garage structure. $75-$200 / month.

Park a few blocks away and walk to the office.

Bike rack.

Drive to all appointments. Circling the block 5 times to find a parking spot. Hopefully you don’t get a ticket.

Ride your bicycle or the company shared bicycle or Uber/Lyft.

Take transit or ride your bike or meet at your office, which is probably really cool and creative.

Drive 5 minutes to go 5 blocks but hey at least they validate your parking! (maybe)

Walk or ride your bike or use a delivery app like Caviar, Postmates, Foodjets, Waitr, Doordash, or Uber Eats...

Walk because your office is close to restaurants and coffee shops.

Long aggravating commute in rush hour traffic after a hard day.

Your carpool or Uber/Lyft driver is a great opportunity to vent about that person in the office that microwaved their fish and stunk up the whole office.

Stumble home after happy hour - you don’t need a DD if you can walk there!

You bought a house with a 4 car garage, so it’s all worth it, right?

You leave your car at home or work overnight because you don’t have to use it during the day. Nice.

Your home bicycle rack makes great wall decoration.

The costs of owning and operating a car stack up: gas, parking, maintenance, repairs, interest on your car loan, depreciation, etc. The average annual cost is $8,000 - $12,000, not including the purchase price, anxiety medication, and anger management therapy.

Don’t go cold turkey - you can ease your daily stress by walking the 5-10 blocks to your next meeting, or take a walk while you’re on a conference call. Ask your friends, coworkers and neighbors (the ones you like) where they work and how they get there, and start a carpool!

Live where you work, or work where you live!

Granted, some of us do not have the ability or means to relocate into this ideal situation. But, if you want to move your offices to the Grid, check out my article on page 18 and send me a message.

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Do y ou w ish t he Sa cra mento s kyli ne ha d more s kys cra p ers ?

WHEN WILL THE NEXT

H IGH -R ISE BE BUILT?

SCOTT KINGSTON - VICE PRESIDENT

1

Skyscraper prerequisites:

There’s no denying that the skyline is missing a few teeth – there are some yawning vacancies between arguably stout towers. Each new high-rise that fills these voids will contribute to our city’s urban identity and sense of ‘place.’ A new bundle of tenants could bring more profits to local businesses. A new tower could breathe even more life into the downtown area. A more memorable skyline could possibly increase tourism. It’s

W “When will the next big highrise be built in Sac?” our clients, friends, and families ask us.

Left: Downtown Sacramento at sunset. Top: Sacramento Office of the Attorney General.

clear why everyone is asking. So when’s it happening?

We all see the beautiful renderings online and in print – and for at least a couple years, we think those renderings are going to remain renderings – at least until office rents crest $3.80 per square foot. This is because developers’ profit margins dictate that rental rates at new buildings will have to be around $4.00 per square foot to make them even remotely profitable.

This leads us to the following questions: Where are office rents now?

How quickly will they approach the rental rate needed for a developer to pull the trigger and go vertical?

400’

396’

Park Tower

Bank of the West Tower

430’

U.S. Bank Tower

Wells Fargo Center

TA L L E ST 4 TOW E R S I N S AC

380’

Important items to consider. However, a more keen question is: how does this affect tenants in class-A high-rise space right now? The lack of new supply combined with the continued demand for space on the grid puts increased pressure on rent for the foreseeable future. This means tenants should strongly consider looking at long term plans now, even with 1-3 years of lease term remaining; the focus will be on hedging against much larger future rent increases. Renegotiating leases Downtown used to be about saving money and securing concessions from landlords, but for now, lease renewals and relocations will largely be about protecting your company from higher rents in the future.

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2

How the numbers look:

2

2010

GROSS RENT / SF / MONTH Government Affairs District

2011

3.60

2009

Capitol Mall

4.00

2012

3.20

Point at which new high-rise becomes likely

2.80

2008

2013

Historic average 2.60

(Note that this is just a standard line chart projected into a circular shape)

2019

2014

ted

3.00 3.40

Pro jec

2018

2015

$3.80 2017

THE HIGH-RISE MARKET

2016

[as of March 2018]

Used historic data from the following properties.

Governmental Affairs District: 915 L, 925 L, 1121 L, 1215 K, 1201 K, 1415 L, 1414 K Capitol Mall: 300 Capitol Mall, 400 Capitol Mall, 500 Capitol Mall, 555 Capitol Mall, 621 Capitol Mall

Governmental Affairs District

< 4,000 SF

$ 4.0 0 per squar e fo o t by 2020.

Class A G overnmental Af fair s Distric t of fice r ents ar e pr oje c ted to hit $ 3.50 in 2019 and appr oach $ 4.0 0 within 18 -24 months. A ssuming the e conomy continue s at its cur r ent pace, class A Capitol Mall of fice r ents ar e pr oje c ted to hit $ 3.4 0 in 2019 and appr oach $ 3.9 0 within 18 -24 months.

11 Spaces

4,000 - 6,500 SF

6 Spaces

6,500 - 10,000 SF

1 Space

10,000 - 20,000 SF

1 Space

> 20,000 SF

Capitol Mall

FOR A HIGH-RISE TO BE BUILT, RENTS NEED TO REACH $4.00 / SF AND VACANCY NEEDS TO PUSH 2%.

D O W N T O W N O F F I C E VAC A N C Y R AT E S Capitol Mall

< 4,000 SF

21 Spaces

4,000 - 6,500 SF

11 Spaces

6,500 - 10,000 SF

7 Spaces

10,000 - 20,000 SF

3 Spaces

> 20,000 SF

2 Spaces

Point at which new high-rise becomes likely

Very few spaces on the market are

Decreasing vacancy as time elapses

over 5,000 square feet. This lack Projected

of supply will cause rental rates to spike for tenants renewing in spaces greater than 5,000 square

2020

2019

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

feet in the next few years.

2008

Vacancy Rate (%)

Government Affairs District

40 35 30 25 20 15 10 5 0

0 Spaces

Used historic data from the following properties.

Governmental Affairs: 915 L, 925 L, 1121 L, 1215 K, 1201 K, 1415 L, 1414 K Capitol Mall: 300 Capitol Mall, 400 Capitol Mall, 500 Capitol Mall, 555 Capitol Mall, 621 Capitol Mall

2% vacancy by 2019 in G overnmental Af fair s Distric t.

5% vacancy by 2019 on Capitol Mall.

Class A G overnmental Af fair s Distric t of fice r ents ar e pr oje c ted to hit $ 3.50 in 2019 and appr oach $ 4.0 0 within 18 -24 months. A ssuming the e conomy continue s at its cur r ent pace, class A Capitol Mall of fice r ents ar e pr oje c ted to hit $ 3.4 0 in 2019 and appr oach $ 3.9 0 within 18 -24 months.

Right: Some of Capitol Mallâ&#x20AC;&#x2122;s tallest towers, with the Wells Fargo Center in the middle.

CAPITOL MA L L GOV E R NM E NTAL AF FAI R S D I S T R I C T

Po tential Development Site s Four po tential development site s r emain in the G overnmental Af fair s Distric t. (10 th & J, 11th & J (nor th side and south side), and 15th & K ).

One po tential development site r emains on Capitol Mall. (301 Capitol Mall, the former home of the infamous â&#x20AC;&#x153; Tower sâ&#x20AC;?).

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3

4

What this means for your office lease:

Vacancy rates are falling in the Governmental Affairs District.

At 3-4% vacancy currently, landlords hold all the cards. In this district, with only three potential development sites remaining at 10th and J, 11th and J and at 15th and K streets, tenants are in for a rude awakening when their leases expire over the next few years.

Many of the remaining medium and large blocks of vacant space have been leased along Capitol Mall as well, with a handful of leases in the works on many of the large remaining vacant spaces. Vacancy will dip well below 10% in the very near future. There are only two likely

remaining development sites at 6th and Capitol Mall and 3rd and Capitol Mall - but neither developer will pull the trigger until rental rates approach $4.00 per square foot.

Further compounding space demand, as their leases expire in the next two years, tenants in the Governmental Affairs District may spill over into office space along Capitol Mall because of a lack of supply in their current location.

To minimize big rent spikes in the future, tenants should extend and renegotiate their leases well before lease expiration to lock in lower rental rates long term.

R E N E W I N G Y O U R L E A S E E A R LY ?

Common lease renewal considerations: 1

Tenant Improvements

HOW MUCH WILL

When negotiating an early lease renewal, tenants can address the need for

YOU ENJOY

tenant improvements early - or plan for them later on in the lease. This can be

LIVING IN

something simple like paint and carpet, or a complete remodel of your space.

MIDTOWN?

Also consider new data wiring, 802.11ac Wi-Fi access points, VOIP telephones, and audio-visual upgrades to conference rooms.

2

Lease Terms

Determine what other existing lease terms need to be addressed in negotiations with your landlord. This can include holdover language, operating expenses, parking or subleasing rights.

3

Work Environment

Many office tenants are considering different kinds of working environments like open office environments with collaboration space, or moving from high-rise space to more architecturally creative space in Downtown and Midtown.

4

Space Efficiency

If you are leasing more space than needed, or are in need of more space; now is the time to correct space efficiency issues. You should create a lease that will work for your space needs long term.

5

Parking

Parking rates are accelerating faster than office rents, and spots are tougher to come by than ever before. Negotiate and secure long term parking needs into your lease.

6

Start at zero. Add or subtract points for each answer.

Personal Guarantees

Negotiate the security that is necessary to get a deal done with your landlord while protecting your financial interests and avoiding significant personal or corporate guarantees on rent and/or improvements.

Top: The 11-story tower at 19th and J begins going vertical.

1. YOUR FAVORITE SOUND IN THE MORNING IS: A) A lush tree canopy rustling in the breeze. (+20) B) Joggers panting as they trot past your window. (+15) C) Garbage trucks. (+15) D) Absolute silence. (-35) 2. THE WAY YOUâ&#x20AC;&#x2122;RE MOST AFRAID OF DYING IS: A) Over-stuffing yourself full of locally-baked sweets. (-10) B) Drowning in a tragic levee failure. (-10) C) Contracting the plague via overly-friendly neighborhood cats. (-15) D) Boredom. (+25) 3. YOU NATURALLY BOND WITH YOUR NEIGHBORS OVER: A) Mutual disdain for combustion-engine leaf blower noises. (+30) B) Mutual disdain for sociallyliberal attitudes. (-50) CONTINUED ON PAGE 19

PARK 980 9th Street + 1010 8th Street

TOWER C L AS S A R ETAIL SPACE FOR L EASE

TURTON

Turton Commercial - 916.573.3300 - Turtoncom.com

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A re y ou aw are of t he p rop os ed cha nges to p rop erty ta x ra te ?

TH E R U N - D O WN ON

PROPOSITION 13 KEN TURTON - PRESIDENT

Legislators are evaluating modifications to Prop 13 – and they would significantly impact real estate.

Part 1: Extend tax breaks for homeowners over the age of 55, allowing them to bring their lower tax base to new homes when they sell their current residences.

Typically, real estate values increase over time. This is a function of scarcity, inflation, replacement cost, and alternative rent options. A home’s tax basis does not adjust with this value increase – only when significant improvements are made or the property is sold, under current Prop 13 stipulations. Naturally, this tax protection creates a disincentive for many homeowners to sell.

Under the proposed legislation, those over the age of 55 would be able to carry their lower property tax basis with them when selling and repurchasing residences. Obviously, this would reduce tax revenues to the State. Analysts estimate a $1 billion tax revenue reduction.

To compensate for this deficit, they are proposing a second component.

Allows Home Owners 55 years and older to retain their tax base Part 2: Remove existing Prop 13 tax protections from commercial and industrial properties.

This would allow the State to reassess properties’ current value and tax them accordingly. In other words, if a property was purchased for $100,000 forty years ago and the current tax rate was $2,210 annually, the State could reassess the property at its appropriate current value of $1,000,000 and increase the tax accordingly - whether you sell it or not. In the current version of the bill, owner occupant businesses would be exempt. Many analysts feel it would increase State revenues by over $10 billion. Advocates of the measure say the increased revenue is desperately needed for the public education system.

However, a huge cost will be borne by businesses (and ultimately, consumers) throughout California. Those that are on modified gross (MG) or full service gross (FSG) leases often have base years with passed through operating expenses – they are okay. But nearly all industrial and retail businesses in California lease space on a triple-net (NNN) basis, which means they pay all operating expenses and property taxes. Those that don’t have base years, like residential apartments and some office tenants, will discover their rents have suddenly increased in step with the increase in property tax.

Additionally, this plan does not account for the significant reduction in property value that occurs during down markets, nor does it address a mechanism to make the tax adjustment. In the last three years, many properties have sold at significantly higher prices than their previous basis. If the market softens, the higher tax rate may be retained, even further impacting property and business owners.

If you are concerned about the impact of the proposed modifications to Proposition 13 to your real estate portfolio please contact one of our agents to discuss.

when they sell their home.

•

Reduces State revenue by an estimated $1 billion

•

Incentivizes long-time homeowners to sell

•

Potentially frees up lesser priced homes for newer homeowners

•

Increases demand for high value homes in 55+ demographic

Allows State to reassess commercial properties’ current value and increase tax in conjunction.

•

Increases State revenue by estimated $10 billion

•

Higher taxes on offices leads to higher rents for tenants

•

Higher taxes on industrial and retail spaces leads to higher costs for consumers

•

Disincentivizes retaining vacant or blighted properties

•

Fails to account for the impacts of these tax increases in a severe economic downturn

TAX RATE & PROPERTY VALUE

If approved, the plan would increase State tax revenues by roughly $10 Billion by altering the existing Prop 13 tax protection given to property owners in California.

Prop 13 was passed in 1978 to help owners of commercial and residential assets by “fixing” their property tax basis at the rate they paid when they purchased their property. It remains at this base (plus modest annual increases) throughout the term of ownership - regardless of how much the property’s value appreciates.

PROP 13 REVISION R A M I F IC AT I O NS

ERTY

PROP

E VALU

IF RATE TAX

ED

REVIS

TE PROP 13 TAX RA PAST

PRESENT

FUTURE

Left: Neighborhoods like this full of seniors may change in demographic, soon. Top: The State Capitol building.

FOR SALE

LOFTS AT T H E

CH ES T NUT LUXURY MULTI-FAMILY OVER RETAIL IN THE HEART OF THE URBAN CORE

Turton Commercial - 916.573.3300 - Turtoncom.com

1

8

Mov ing my c ompany to the Gri d i s a ni ce i dea , b ut where do I s t art ?

W H AT Y O U N E ED TO DO TO

GET TO THE GRID PATRICK STELMACH - DIRECTOR

So, you want to relocate to the Urban Core?

Where are you right now? If you are outside the Grid reading this magazine, there are ample reasons to relocate to a gorgeous, dynamic, interesting space inside the Grid, but it’s not as easy as a LoopNet search.

Your firm is defined by your location, among other factors of course. An office space in the Grid reflects your firm’s brand and vision at the epicenter of Sacramento’s business community and creative economy. Your clients admire your trendiness, and your employees enjoy being able to walk to the best food, coffee, and entertainment. The “cool factor” of your location helps you recruit top talent and retain best performing staff; at peak performance in this space, your firm increases revenue, reduces expenses and increases profit.

You may be asking yourself: “I’m a startup in Midtown and we needed an office space yesterday. What can I do?”

“What is a good deal? How do I get an office space my company can afford? How do I get the best possible location at the lowest economic terms?”

“My company has 10 employees now but we could be at 30 employees next year – how can I get flexibility to expand?”

It can be a daunting challenge to find a space that is affordable, attractive, and functional. And has parking. And has amenities nearby.

On top of that, you might have to beat out the competition. If you’re looking in the Grid to lease or purchase a property for your business, here’s what you need to do.

4

1

K

E

Y

T A S

K S

Develop product knowledge

Properties are vastly different one from the other in the Urban Core. You can take a 10 minute walk around a couple blocks in Midtown, and every building will be unique, from charming to quirky to janky. When you

live, work, and play here, you get to know every property in the Grid. The differences, features, and benefits of one building to the other will impact your rent and costs of doing business in that location.

G O O D Q U E ST I O NS :

1

How do you compare a high-rise on Capitol Mall, to a mid-century modern mid-rise, to a Victorian converted to commercial use?

2

What kind of windowlines can you get with an attractive view and lots of natural light? What types of windows will mute out exterior noise, keep your space cool in the summer and warm in the winter, vs. blazing hot when the sun beats down and drafty in the storms?

3

Is your building ADA compliant? Does it need to be? What are the pros and cons of being on the second floor of building with no elevator?

4

What is the roof on the building? Will it leak black tar all over your desk?

Top Left: Midcentury Modern architecture at 1220 H Street.

Top Right: Classic Sacramento Craftsman at 2017 T Street.

Panorama: An aerial view of Sacramento from West Sac. Right: Jon Lang gazing out of the massive windowline at the Ice Blocks. Left: 300 Capitol Mall.

CONTINUED FROM PAGE 14

4. YOU WANT TO LIVE WITHIN SHORT WALKING DISTANCE OF: A) Coffee shops, restaurants, grocery stores, bars, show venues, parks, and work. (+25) B) Nature activities. (+10) C) Both of the above! (+35) D) A house with the same floor plan and paint scheme as yours. (-20) 5. YOUâ&#x20AC;&#x2122;RE A SINGLE 20-SOMETHING WHO LIKES TO GO OUT. B) True. (+30) B) False. (+20) CONTINUED ON PAGE 25

2

2

“The food and dining options are why we love to work everywhere and feel the energy. We’re not penned up in a business park. The

Learn the value of information

Knowledge of every building is not enough though. Anyone can search for properties on the market. But soon-to-be available space is not advertised. Companies that are growing or contracting can on occasion move to a new space within their existing building. If the company moves or experiences consolidations before their current lease

SOME WORDS FROM A FRIEND O N T H E M AT T E R

in Midtown. I can walk

0

Top: The interior of 1200 R Street after HGA renovated the space.

Bottom: Sean Tooke sets up a coffee meeting.

expires, they can try to sublease the space to another company, or they may intentionally leave it vacant, known as ‘shadow space.’

You won’t find many of these spaces on LoopNet. You have to possess high quality information about the market – this is what we refer to as our intellectual capital.

W O R T HW H I L E C O N S I D E R A T I O N S :

1

What businesses are moving out of or into which buildings?

industry counterparts.”

2

What spaces are going to be on the market in the future?

- Brian Hanly Next Generation Capital

3

What spaces could be available but are not on the market?

employee talent pool is here and we’re close to our

3

Keep an open mind

Building styles, architecture, design, and condition can vary greatly. The diversity of the Grid is one of the things that make it such a great place to work. But there are other areas, just off the beaten path, but still within the Grid, that could fit your needs (and your budget).

Many buildings can look run down and the spaces haven’t been updated since the 50s, an architect or space planner or interior designer can help you envision the possibilities of constructing a new beautiful space, if the building has good bones. Negotiating the tenant improvements is my favorite part of my job.

P R U D E NT Q U E R I E S :

1

Where should I open shop? On Capitol Mall, K Street, or R Street? (See my Field Guide to the Districts article on page 18 in Grid Issue 2)

2

Is that an old warehouse, or a possible awesome converted office space?

3

Can the interior walls be demolished to make an open office space? Who’s going to pay for it?

You’ll need a team of professionals to make it a successful move, and the key is a commercial

4

Invest time in your understanding of the market

Start your search early, so you can make decisions quickly. If you have a lease that is expiring in the next 12-18 months, it’s a good idea to start looking around for your ideal new space, so you know what a good deal looks like when you see it. If you don’t know what a good deal is, you might procrastinate on making a decision to see “what else is out there,” and you will lose out on a great deal.

It is a competitive environment to get the best deals in the Grid.

Less than 4% of office spaces in

Midtown are vacant, compared to 12-20% in other areas of Sacramento. It’s not just perception, it’s a fact that the Grid is the most desirable location for the majority of businesses and their employees. You have to be able to make quick decisions on your real estate within a day or two, or your competition will get it the next day.

Give yourself plenty of time upfront to do space planning, touring buildings, making proposals, negotiating the lease, and physically moving your furniture.

Top: 1200 R Street when it was an empty warehouse before the HGA and Market 1 Builders move-in.

Right: Some of the Turton team assessing redevelopment plans.

broker

real who

estate special-

izes in representing tenants

and

knows

how to present to a landlord your organization, its strengths, and how your tenancy increases the value to their building. Tenants that maximize their competitive edge can achieve the best eco-

P R O A C T IV E R U M I N A T I O N S :

nomic terms of their

Do I have a competitive business plan (products/services offerings, marketing plan, projections, leadership structure)?

lease. In fact, depend-

2

Do I have important financial documents (P&L / tax returns / bank statements) ready to submit at a moment’s notice?

the building, landlords

3

Is this building a great deal, or is it common to see spaces like this at this price point?

1

ing on the market and should be competing for your tenancy – not throwing you a bone.

2

2

What does YOU R perfect ni ght out i n Sa cra mento look li ke?

Q U I C K G U I D E TO A GOOD

NIGHT OUT JON LANG - VICE PRESIDENT

Sacramento has something for everyone. Follow this guide for some inspiration.

HAPPY

DINNER

POST-SUPPER

NIGHT

The Flamingo House Social Club Embrace your inner Don Johnson.

The Cantina Alley Authentic street food... in an urban alley.

Second Saturday art walk “Yes, but how does this piece make you feel?”

Milk Money Head to Ice Blocks for an icy treat with a cherry on top.

LowBrau Bierhalle / Block Butcher Bar “Ok, only one drink – make it a stein!”

The Rind Wine and cheese?

Uh, yes please.

Der Biergarten Cheap, good beer and an endless parade of Midtown’s cutest dogs in this open-air lounge.

Faces Nightclub “I just wanna dance!”

Pre Flite Lounge High-key pregame at low-key Pre Flite.

Punch Bowl Social “I challenge you to a game of cornhole before appetizers arrive and a round of bowling after dinner!”

Coin-Op Game Room Competitive bonding over life-sized Jenga.

Faces Nightclub “Cause, you know, that’s where the girls are...”

Fieldwork Brewing Co. Small talk and joking around with Bay Area brews.

Zocalo Midtown Business discussion over fish tacos and lime rice.

Game at Golden 1 Center Cliché, but effective.

Revival Roof top pool + postgame energy = closing the deal.

Ella Downtown’s best happy hour.

Stop typing that check-in text to the babysitter and start drinking that cocktail.

Empress Tavern Head underground for a moody, romantic atmosphere and artistic culinary experience.

Show at Crest Theatre Finally, something more substantial than The Bachelorette.

Ten Ten Room Whisky and wine, but home by 10:00 PM to pay the sitter.

MARRIED WITH KIDS AND NEED A NICE NIGHT OUT

NIGHT OUT WITH CLIENTS

BOYS’ NIGHT OUT!

GIRLS’ NIGHT OUT!

FIRST DATE

HOUR

TIME

EVENT

CAP

Random data from our office!

Your preferred pastry from Freeport Bakery is a:

Bear claw

Your favorite Turtonsponsored mural is:

Peanut butter cookie Adnate’s

Butter croissant

Donut from Marie’s next door

The average number of cats you see in Midtown per day is:

Caratoes’

3-7

Less than 3 Delgado’s 8 or more

HIGH VISIBILITY

LOW VACANCY

4 EYE-CATCHING SIGN COLORS AVAILABLE

2

4

“ We w il l see more disrup ti on i n the next 10 yea rs of reta i l th an w e d id in t h e pre v io u s 1 ,0 0 0 .” 1

B R I C K & M O R TAR VS.

CLICK & ORDER BROOKE BUTLER (MSc Marketing) - VP OF OPERATIONS & MARKETING

W Wine me; dine me; Amazon Prime me!

A 2016 poll found that 79 percent of Americans shop online, up from 22 percent in 2000. Internet users cite the benefits of reading product and service reviews, comparing multiple goods, and finding a cheaper price rapidly – all with the massive convenience of doing it where they please. With information at the tip of their fingers, consumers have taken from retailers the clout they once commanded in their stores. Now, shoppers seek convenience and unique experiences from brick and mortar establishments to fulfill what they cannot achieve online. Here’s how you can adapt.

79% of Americans reported using the internet for shopping in 2016:

Non-users

Users of internet for shopping

1

Rethink the Role of the Physical Store

Having a customer’s full attention in your shop is increasingly rare. Although consumers often go to stores for sensory appeal – physically being able to feel and smell products - they can price check in-store and compare product selection online. I may be guilty of this…

To capture a share of the consumers’ basket, it is time to consider an omni-channel strategy that focuses on designing a cohesive user experience for customers at every touchpoint: online, brick and mortar, social media etc. A physical store may take on the role of “showrooming” rather than being the main driving channel for sales. While a typical pain point for retailers, showrooming can be an opportunity to create a meaningful connection with shoppers by of-

fering personalized services and “shopper-tainment.” A great example is Fleet Feet in Midtown.

They have an abundant staff that is available to walk customers through a personalized gait analysis to determine the ideal shoe – a unique experience that provides value to the customer.

Researchers predict that by 2020, only stores offering unique in-store experiences will see increased foot traffic2. Such experiences could include simple changes, such as increased interaction between sales staff and customers, unique retail buildout, or additional services like having live music or coffee. More extreme examples include adding virtual interactive shelves, using 3D scanning technology to create virtual fitting rooms, or augmented reality apps.

2

CONTINUED FROM PAGE 19

Cater to Convenience

The average attention span for a goldfish is nine seconds. In the year 2000, the average human’s attention span was 12 seconds - now it’s a meager eight3. Our increasingly digitalized and multisensory lifestyle has had tremendous effects on the average brain. Consumers’ time is more limited and more valuable than ever before. Consequently, consumers want convenience. 56% say a convenient location is highly influential in their decision to shop at a particular retailer. 45% percent of global respondents say their store selection decision is highly influenced by an organized layout that makes it easy to shop4. Convenience is key. And competition for the easiest-to-access locations will be fierce.

3

Think Small

Consumers are trending toward smaller stores, buying in smaller batches, and shopping more frequently. This is partially driven by urbanization and the desire for convenience. The United Nations projects that two-thirds of the world’s population will live in urban areas by 2050, up from 54% in 20144. The era of the warehouse supercenter stacked to the ceiling with pallet-packed merchandise is being usurped by the era of the boutique local clothier that serves coffee and displays local art on Wednesdays. As retailers focus on creating shopper- and experience-centric stores, they will need to downsize their physical footprint and create environments that blend more seamlessly into the communities they serve. Retail establishments will be fewer, smaller, but more impactful2. In midtown, boutique retail shops like Getta Clue at MARRS may be emulated by bigger, national firms.

Left: An Amazon package about to be delivered.

Right: The cozy interior of Fleet Feet on J Street.

6. YOUR PREFERENCE FOR WHERE YOU LIVE IS ANALOGOUS TO: A) A beat-up Nissan Sentra.

Nothing special, but it wasn’t ever meant to be (-25) B) A new BMW 530i. You’ve got one life and want to enjoy the nicest ride. (+20) C) A roaming VW bus packed with neo-hippies.

Wherever the art and music is happening. (+15) D) A minivan. Purely utilitarian and slightly embarassing. Best for containing family. (-20) 7. YOU ___ KNOW HOW TO RIDE A BICYCLE: A) Do. (+10) B) Do not. (-35) 8. YOU ___ IT WHEN PEOPLE FAWN OVER YOUR DOG IN PUBLIC. A) Enjoy. (+20) B) Detest. (-20) CONTINUED ON PAGE 43

2

6

STORE57_TRACKING_DATA_[112318A]

4

Analytics Can Enable Growth

By 2020, physical stores will have access to all of the same key data and analytics as e-commerce retailers2. Brick and mortar can expand past simple point-of-sale data, traffic counters, and CRM. New technologies can count traffic, measure engagement, customize promotions to individuals, identify slow areas of the store, assess staffing relative to customer wait time, and more. Greater amounts of data will help retailers refine all elements of

their stores.

It may be spooky to think about, but data analytics also lay the brickwork for creating the optimal individualized shopping experience specific to each customer. Imagine entering a store where the staff immediately knows your size and style and can offer promotions on your favorite products via mobile connectivity! This feature could save customers a lot of time and help them more easily find products theyâ&#x20AC;&#x2122;ll enjoy.

SOME CONCLUDING REMARKS

These four strategies Top: What storefront data analytics of the near-future may look like.

ultimately fall under the same theme: retailers need to create shopper-centric experiences.

Consumers

will continue to evolve with technology. Retailers have the oppor-

1

Baker, N. (2015, April 3). 5 Tech Trends That Will Hit Every Retail Store By 2020. (Forbes)

2

Linklater, J., & Mulvenna, A. (2016). The Future of Retail. Quebec: SweetIQ Analytics.

3

McSpadden, K. (2015, May 14). You Now Have a Shorter Attention Span Than a Goldfish. (Time)

ers in their niche, but

4

Think Smaller for Big Growth. (2016) New York City: Nielsen.

not for long.

tunity to be first mov-

L O C A L

TH RE AD S SOME LOCAL

CLOTHIERS WE

WORK WITH SHOW

US THEIR LOOK!

HE ART BOUTIQUE Ideally situated at 19th and Capitol, Heart Boutique provides a wide selection of colorful women’s clothing, ranging from cutesy to elegant.

Heart Clothing Boutique - 1903 Capitol Ave, Sacramento, CA 95811 - IG: @heartboutique Denise Gutiérrez - Midtown Resident - IG: @deee_nice

Bolero Hat - $18

Signature Necklaces - $18-24 Lucy Love Gingham Dress - $72

Repairs at Trek Bicycle Sacramento Midtown - $40

Black Shoes - Model’s own

Custom Italian Cotton Shirt - $159 Signature Silk Neckwear - $80 Super-130s Textured Blazer - $699

Grey Super-130s Wool Slacks - $299 Italian Cotton Stripe Shirt - $159 Signature Silk Neckwear - $80

Silk Pocket Square - $50 NĂŠkter juice - $6.50

Custom Navy + Grey Weekender Bag - $499

Super-130s Wool Suit - $1,199

R. DOUGL AS Our local high-end, custom menswear clothier is R. Douglas.

Their shop custom-tailors all clothing to each customer and uses fine, imported fabrics from Europe.

R. Douglas Custom Clothier - 1020 12th Street, Suite 112, Sacramento, CA 95814 - www.rdouglas.net Chuck Ramirez (left) - R. Douglas Employee // Ryan Hammond (right) - R. Douglas Founder

Double-monk Cognac Patina Shoes - $399

Weiv Shirt - $36

Liquid West Sweater - $30

Audrey 3+1 Kimono - $46

Michele Top - $32 Victorious Slacks - $36 Necklace - $18

Ferro Aldo Shoes - $52

Eunina Jeans - $46

Small Black Coffee from Temple - $2.80

IDENTITY Identity, established in Midtown a little over four years ago, bridges the gap between business-casual and your-friendâ&#x20AC;&#x2122;s-couch-casual with high energy and an approcahable price-point.

Shoes - $44

Identity Boutique - 2600 J St, Sacramento, CA 95816 - www.shopidentityboutique.com IG: @identity_boutique & @identity_mens_mobile Shane Twilla (left) - Identity Mens // Stephanie Bozzalla (right) - Identity Boutique

Unisex Backpack - $50

LowBrau Giant Pretzel - $6

GET TA CLUE All Good Windbreaker - $79

Moving to a brand new DOCO location soon, Getta Clue currently showcases local streetwear brands in their MARRS storefront, including the recently-famous All Good.

Getta Clue - 1050 20th Street, Suite 180 Sacramento, CA 95811 - IG: @gettacluestore Morgan Conley (left) - Medical Student - IG: @morgan_s_conley Yousaf Khan (right) - Midtown Lover - IG: @yousaf_con

Kennedy Raw Denim - $48

The People of Sacramento Phone Case - $15

Kennedy Woven - $54 Saucony Shoes - Model’s own

Kennedy Chino - $49

Jon Stevenson Farm Two Feet Socks - $15 Grey Chucks - Model’s own

Turton Commercial - 916.573.3300 - Turtoncom.com

TURTON

730 I STREET

IN THE MIDDLE OF

EVERYTHING FOR LEASE R A R E L A N D M A R K S T RU C T U R E 1 B LO C K F RO M GO L DE N 1 CE NT ER

70,000 SF O F F I C E / R E TA I L 1 0 0 PA R K I N G S TA L L S

3

3

I f y ou’v e al ready max ed out your p rofi ts i n one ma rket, why n o t c arry t h at c apit al in t o an emergin g o n e?

C A LI F O RNIA’ S M OST ATTRACTIVE RE GION TO INV E S T

MIGHT BE SAC JOHN MUDGETT - SENIOR DIRECTOR

Sacramento has been busy since rising from the ashes of the recession.

We’ve come a long way since the bottom of the market in 2009-2010 and are now well into the mature stages of the current real estate cycle. Multiple trends are converging to support and build a new Sacramento. Low unemployment and a resilient economy have local home values flirting with historically high pricing. Vacancies for commercial and multifamily are both at historic lows while rental rates will continue to increase to meet the demand.

The city is becoming a high quality urban center that is young, vibrant, active, and approachable – with room to grow. No one can recall a time when the city was this cool and the market this good.

However, knowing the cyclical nature of the real estate market, it begs the question: is it too good? Do you double down and invest into this momentum or take some chips off the table in face of the looming volatility that potentially lies ahead in the form of interest rates, inflation, political unrest or a black swan event?

I advise my clients that their answer should vary significantly depending on a variety of factors. Factors including: asset class, risk profile, submarket, property condition as well as the specific goals and timeline of the property owner and/or business owner. Every commercial property in the urban core is very unique and comes with a complex set of marketable attributes and economic variables that need to be considered.

Concurrently, the timeframe an investor is thinking in will influence their strategy. There hasn’t been a better time to sell if your investment actualization horizon is under five years. That is because most professionals agree that we are in a later stage of this 7-10 year real estate cycle. At the same time, investors with a longer investment horizon are making calculations that Sacramento is a city worthy of big investments, anticipating growth in the long term. If your plan is to hold your investment for 10 years or more, then it’s also a great time to buy.

Perhaps the strongest reason for Sacramento’s recent boom is that it’s the last affordable frontier relative to the major California metro areas. California residents migrated here in record numbers last year – a number set to increase in years

to come. “The Sacramento region has experienced more growth from domestic migration – people moving to the area from other parts of California and the U.S. – than during any other time since the housing boom” according to new estimate from the CA Dept of Finance.

Quality of life is suffering dramatically in the large metros such as San Francisco, Los Angeles and San Diego. In a recent report, 40% of Bay Area adults have roommates out of necessity. While wages are higher and jobs more abundant, they still result in a struggle to stay afloat. Many economic refugees seek shelter in other states, but Sacramento presents an attractive option with an unprecedented quality of life to price ratio.

Hand-in-hand with mass immigration to our city comes a significant amount of investment into the market. Outside investors in saturated markets notice the value arbitrage presented by the room for Sacramento’s growth. Having capitalized on red hot markets in the Bay Area and Southern California, investors are allowed the opportunity to buy properties below replacement cost in a city that is on the rise.

A younger generation of developers has been willing to look at things with creativity. Bold visionaries including D&S, CADA, CFY Development, Sotiris Kolokotronis, Ravel Rassmussen, Tri Cap Development, and Indie Capital were able to successfully identify niches of opportunity where demand has not been met. Now we are experiencing the outside investment community looking at Sacramento and have the ability to really accelerate the path of progress.

Sacramento is a city on the rise. Those willing to make investments into Sacramento will continue to benefit. We believe in this city and are here to help.

Top: The stormfront has reached Sacramento.

FLOWCHART:

SHOULD YOU INVEST IN SACRAMENTO? S TA RT H E R E

No

Have Money

Yes

Want to make more?

Yes

No

No

Hmm. Do you really want to be without a nest egg in your golden years?

Like markets with room for growth?

No Yes

Invest in Sac.

You must enjoy small returns.

Invest in a Treasury Bond.

Yes

OFF-MARKET PROPERTIES

R T H N C U P Z R V T E V B C U Z Z E K P D L M F B N Q J H X G Q K H R K L V G O F V S E H G V B L

Z K C S X A K V Q S V F C D X N Y R D E Q U W O N V N D B G N G Y E J K S Z P Y B Z K A F I I H V R

J T I Z F E C Q E S H S W G P F N R V Y A R T R B B C E L Q S S N S H B G V G U X W F F K D Z I S P

T Y F G T B Q C Z W X I Z T B N G K U H J L S I A P N G V L V Z J Y C B S F P S Q Z U Q I M T Q U N

Z G O C N N Q H O D C E L T D M Y I U I A W C Q U M B N F E S S T E H T R D H E G V Q F Q T D D C F

L Y R W K K H L K K W Y X W A I X Q O M G Q M I Y U Q T U A X P O J P T R D C A B T K U I Y B F S W

F O H Y N V A I R W D O R W X K N D P E L Y O C S O A M R G I V B X D R I A D A R Y H E O K I P L X

Y N I L O D N S L U N W V T U L A E L O E H Q T M E O C B Z Z N Y B F M U E D W H A H G M N I Z U C

O J O U W Q D R Q M E P G Q T P R P J D L W Q O A A Z B A P W R O Q L B B V T K W M E B V I J V S F

R N B F H H P A V I D Y U T J Z P B Q P R O J D L T Z A G Y K G P P C E G I V R W A U L I I O E G W

W I H U I N X B S P E A K Q S V T K I H P S V D Q I X F S A G I U P W Q V S T P R T G Y I E S T U C

F Q D E X D U M S O E J Y I Z Y L D V X U P J V S K H K V E N B S C N D Z E A Y C X J U D P Y O Y E

G K D Q A V V P D Q A P J P H U E T Q F P E D W Q V T U I U T M V O D S N R X I Z F J C A A I H W J

F D P T L Q B Q Z A G N G D N C A W V G H F A Y X Z A B U D N X J D K R T K A R W V G O N T T M X G

N C B O J D B B Q R Z S Z G V N Y C Y T T O O S T V Z R F H T J Z H G A T T N F Y H Y A S T U Z R O

P H V H P S R C Z C O I R S V I V R Q H O D D J B H L R M H S X R N Y R D R A K Z L G O G V R N H F

I J Z N P A G C F S S X Y A I P O M P S Q Q B U Q Z G I D D E Z H D L F H W F C P H Y Z Y B T P D Z

I L J Q W I W G E S Y K P M W D P A B W O T X Z X B U W Z K L O G B Q A Z F Q F L Z Y R A V O C H M

I X G H W M R B D Z Y X X Q Y H H E K Y A K C R X D W H S B Q M X Y C M U N N L E K A T O E N N A W

F I I Y D S B S S E T G A L P M U H F B S H J Q L C P X Q L L W J D Z Z E D T P O B W I D O C Z W O

Y N X G G W Q V U S B Z Z F G I Y K G V T H C P J X V P X H J P C Z X L D L G E K W X V H U O F B P

R Q Z U J G B S L H M X R Q U W U F Y N S X V T H R I M L I A J E T A Z W W D A U A A P F T M V E F

Y Q R J D J A G O L V L L W D Q Z W G A L S K X C T X P G E S I E Q B U F R N Z Y E B X Q D M C V C

N G L R A G I A Z H V V I R B B Z O F W E B L K Z K X W P S B U X R S M X J O B X E H S G U E R J Q

R K L L U G B T Q A V V L B O X N V V N J X D E N U B L N A B R V X Y U E O O U P K J R F B R U W G

P D S C N S L V J P M Y I A W H V L U J F G W M X V N D H P Q Y E S P R H E E W S X P P T N C B A R

H A I P M P J M U F K B N K H A A X I G B N V L K Z Z K W D A K U Q O V K A M V Z Z T M A O I T R U

K S X P A Y D Q M I W J F I E A X P K I G U P W X P X I N R U J I E E O A Z M T S O C J F M A U V S

L O Y F V A O Y P D Y P P Q R R X M Z D M V S B J P I L Q W J W F A F R W A O G T D J T N J L R K Y

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A J K B J E N K I Z P K J K B X E D P N K U X X R B O S R P J J A E G R R S L H V I H X O J T .

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B D N F Z G Q B S U U D Q Z H N A C K L E K J E I E N B U S Z G B J C K S R N J A E B A T B E M 0 Y

E A N Y L J L Q R R N L P I V S J M P O D H X E B Y Z R I P I P I C I Q T E U N R P A Q P A L L X U

TURTON

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In early 2018, Ali Youssefi shared a few of his thoughts about his projects, vision and the future of urban housing in Sacramento with Turton Commercial Real Estate.

On Saturday, March 10th, 2018, Ali Youssefi passed away after a lengthy bout with cancer. He was 35.

Youssefi possessed an extremely rare combination of skill, intelligence, resources, intuition and soul that allowed him, at a very young age, to become a leader in the development of affordable and market rate housing to meet the needs of Sacramento’s diverse workforce. He was one of the very, very few that could take utopian dreams and make them a reality. His brilliance stemmed from his ability to understand and assess complex social housing issues and pragmatically solve them by effectively using an array of economic tools to make them viable.

In 2005, Ali Youssefi was working as an investment banker in San Francisco. A year later, he was lured back to Sacramento to work on the adaptive reuse of the historic Globe Mills with his father, Cyrus Youssefi, and developer Skip Rosenbloom. The project, which involved the conversion of an abandoned feed and flour mill into 144 senior apartments, served as a catalyst for the Alkali Flat neighborhood. After the completion of Globe Mills, Ali was hooked on urban infill and adaptive reuse development.

Since then, all of CFY’s developments in the Sacramento core have been the renovation of historically meaningful, yet blighted buildings. Ali and Cyrus have dramatically reenergized the downtown real estate landscape, and in the process, cemented themselves as Sacramento visionaries.

Though Ali Youssefi can never be replaced, his words, legacy and achievements will no doubt forever serve as inspiration for future developers and urban planners. His imprint on Sacramento’s urban real estate landscape is indelible. The City was very fortunate to have him. And we, at Turton Commercial Real Estate, were very fortunate to know him.

Ali Youssefi January 23rd, 1983 - March 10th, 2018

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A brief c hat w it h one of Sa cra mento’s grea t vi s i ona ri es.

I N T E RV I E W E D B Y: J O N L A N G - V I C E P R E S I D E N T

P Perpetually humble, Ali’s brilliance stemmed from his ability to utilize historic tax credits and redevelopment funds to maximize the value of otherwise challenging projects.

Over the years, he partnered with the Sacramento Housing and Redevelopment Agency, as well as the Capitol Area Development Authority, to develop nearly 500 affordable and market rate residential units in the Sacramento core.

“We love doing infill development and we love doing it in Sacramento. Making downtown a vibrant, energized area is a collaborative effort between a lot of groups with a mutual goal. Developers, public officials, and businesses must work together to reinvigorate the city.”

Bottom Left: Globe Mills apartments at sunset. Left: The lounge area of the Warehouse Artist Lofts.

Right: Ali and Cyrus in the courtyard of WAL. Far Right: Warehouse Artist Lofts from R Street.

Jon: What do you see as the greatest strengths and challenges of Sacramento’s urban core development?

Ali: Well, for the most part, Sacramento’s urban core is being developed organically and in a manner authentic to our City’s unique identity. In other words, we’re not emulating other cities, but rather building upon our own rich history and personality.

I think this is one of our greatest strengths and it’s evident by the number of local businesses that populate our urban core.

One of our greatest challenges is that redevelopment in the 50’s and 60’s essentially turned our downtown into an office park for the State of California. It was an approach that embraced the vehicle more so than the pedestrian. Undoing that development pattern and creating pedestrian-friendly blocks that are well connected with one another continues to be a significant challenge.

So, how much emphasis should the City and County be placing on public transit then? And where do you see its place in a world with ever-efficient pri-

vate sector commute options?

When we look at the future of urban mobility, there’s no question that public transit will be an integral piece of the puzzle, alongside other commuting options like bike share, ride share and eventually driverless vehicles. From a public policy perspective, what I think the City and County should be emphasizing is smarter land use decisions around public transit stations. There’s no reason why major transit stations throughout the region shouldn’t become mini urban centers, surrounded by high density housing, jobs and neighborhood-serving retail and amenities. It’s an approach that is environmentally sustainable, promotes economic development and helps address the housing crisis in our downtown.

At what pace do you see the continued development and redevelopment of Sacramento’s urban core occurring?

Unfortunately, when it comes to construction, Sacramento is part of a trade area that includes the Bay Area, so growth in our urban core has been stunted by escalating prices in one of the most ex-

CF Y Development ’s Pr oje c ts in Sacramento: Globe Mills Apar tments - 112 senior units & 31 mid-rate units War ehouse A r tist L of ts - 116 Units 10 th and R S tr e e t - 4 0,0 0 0 S f war ehouse conver sion to healthy gr o cer y concept by Raley ’s

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pensive regions in the country.

Nonetheless, we’re seeing more housing production in downtown Sacramento now than at any other point in the last decade…so, that’s a positive trend that will hopefully continue.

On the topic of continued development, how do you feel the current development fees and process at the City could be improved?

The City has acknowledged there’s a housing crisis, and I think they’ve made a good faith effort to facilitate production.

That being said, there’s always room for improvement. Whether it’s simplifying the fee structure for infill housing or expediting the entitlement or permitting process, anything that the City can do to help make development less expensive and less time consuming will ultimately result in more units.

How do you feel about the impact of current historical preservation standards on urban core development?

Our company has specialized in adaptive re-use and historic preservation for over 30 years, so I may be a little biased with this one. I think historic preservation can produce great environmental and economic benefits, so it should be encouraged whenever feasible. However, regulation and standards should be streamlined for greater efficiency and practicality.

I think it’s important to note that affordable housing comes in many different shapes and

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sizes. So it’s hard to paint with a Switching gears, what’s the broad brushstroke a simple picsolutions to the growing hometure of affordable housing, since less problem is impacting the the population of households urban core? that are in need of below market It’s worth acknowledging that rate housing in order to afford the homeless crisis is impacting a home in the Central City is so cities across the country, not large and diverse. just Sacramento. That doesn’t With the limitations now being abdicate us of our responsibiliplaced on the California Housty to address the problem, but I ing Finance Agency, in addition do think it’s important to underto the elimination of the Redestand that this is a catastrophe velopment Agencies in Califorwith roots that extend beyond nia, how do you see affordable our city or county borders. housing evolving in light of the The solution, in my opinion, is growing demand for fair market thinking outside the box when housing? it comes to housing production.

With the limited amount of reConstruction prices have been sources available for affordable soaring and, unless we find housing, I think we’ll continue cheaper and faster ways to deto see more mixed-income deliver units, we will see the homevelopment. As a hypothetical less problem and the housing example, let’s say a City wants crises continue to worsen. One to build 100 units of affordable possible solution that we should housing. In the days of Redebe embracing is the emergence velopment, resources may have of off-site, modular housing conbeen available to build all 100 struction. We should also be diunits in one project. Now, a more versifying housing supply in the viable way of achieving that goal Central City by building smaller may be to build five 100-unit units as well as co-op-style housbuildings that have 80 units of ing. Enabling high density housmarket rate housing and 20 units ing construction would benefit of affordable housing each. The mitigate the shortage. financial burden of building afAnd finally, what do you find fordable housing is thus spread most rewarding about the work over multiple projects, allowing you have accomplished and the units to be delivered incremenwork you are doing? tally as opposed to all-or-nothThe most rewarding aspect of my ing. The added advantage of this work has been the opportunity approach, from a to learn from, socioeconomic and “From a public policy perspective, and work alongurban planning side, my father perspective, is that what I think the City and County Cyrus. CFY Dea fully integrated should be emphasizing is smarter land velopment has neighborhood is bebeen building ing developed. Fur- use decisions around public transit affordable housthermore, in this hy- stations. There’s no reason why major ing throughout pothetical scenario the state for over transit stations throughout the region affordable housing 30 years, and my funds are being lev- shouldn’t become mini urban centers.” father’s experieraged to help delivence, wisdom er fair market housing as well. and expertise in the industry has It’s a win-win. afforded me the opportunity to So, along those lines, what do get into development and chart you think is the right balance my own path as a builder. between affordable and fair As far as our development work Left: Renderings market multi-family residential is concerned, I am proud that of what the 700 block of K Street housing? we are at the forefront of buildwill look like once Ultimately, that’s a question of ing mixed-income, mixed-use redevelopment is supply and demand since the communities. Real estate is tradicompleted. right balance is one that meets tionally developed in silos, with the housing needs of a communiaffordable housing, market rate ty. Generally speaking, we need housing, and retail space commore of both. California - Sacramonly isolated from each other mento included - is in the midst and built in separate projects. By of a housing crisis in which the mixing uses and income levels, demand for housing continues especially in urban areas, we are to outpace supply. This is particucreating more diverse, integratlarly true for affordable housing. ed and vibrant communities.

TURTON COMMERCIAL - 916.573.3300 - TURTONCOM.COM

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E v er see w hat rent control di d to the lea s e ra tes i n Sa n F ra n c is c o ?

TH E U N F O R TU NATE FOLLIES OF

RENT CONTROL KEN TURTON - PRESIDENT

For a lot of folks I know living Midtown, rent is getting out of control.

The urban core doesn’t benefit from the loss of a local. When a city prices out long term residents, they lose the cultural foundation of what makes the area cool. Of this, there is no doubt.

In the short term, the concept rent control offers a solution – capping rental rates would curb a lot of anxiety looming over locals. Families wouldn’t be uprooted. Sacramento would retain its economic diversity.

And 28-year-olds could finally have their own bedroom. However, when extrapolating rent control’s greater effects, it becomes apparent that the measure would exacerbate the issues it aims to solve.

On January 12th, the State Assembly defeated AB-1506: a bill which sought to repeal a state law known as Costa-Hawkins. Under Costa-Hawkins, cities and counties are forbidden from strengthening current rent control ordinances. Additionally, cities and counties cannot apply rent control to duplexes, single family homes, and all housing built after 1995.

The repeal of Costa-Hawkins would have shifted the burden of determining rent control restrictions from the state to the cities.

It’s likely that there would be solid, salient support for enacting rent control throughout California cities to prevent rentals from becoming unaffordable. The application of rent control would likely extend to houses and duplexes. Theoretically it increases the inventory of “affordable” housing over the long run by stabilizing rents in place plus very modest annual increases.

However, most economists agree rent control has the reverse effect. In fact, a recent UC Berkeley report cited only 2% of economists believe it has a positive impact.

The simplest method to lowering rents is to equalize the current disparity between supply and demand in the housing market – solve the market’s problem by giving the market what it wants. Providing enough housing units, ideally a surplus, would lower demand for spaces and ease rental rates. But rent control disincentivizes developers from building more multi-family housing. With locked-in rental income, fewer prospective developers would be interested in a given property as an investment.

The average population growth in Sacramento has been about 27,000 new residents per year, lately. If no new apartment housing

gets built, housing demand increases and, resultingly, rental rates of units not under the ordinance’s jurisdiction.

There are also many other direct and indirect impacts to both property owners and tenants. Because Landlords are restricted in how much they can raise a tenant’s rent and can only increase revenues from their property through periodic (rare) tenant replacement, they are reluctant to make significant capital improvements to their properties.

This, over time, can cause health and safety issues. Why spend money on a property when it’s not producing more income as a result of the additional investment? The same occurs with the individual rental units themselves. In fact, some Landlords would want individual units to deteriorate enough to shoo tenants out, at which point the landlord can renovate the space and raise rent.

Another impact of rent control is tenant reluctance to explore other housing options out of fear of losing their favorable, lockedin rental rate. At times, this occurs at the expense of sending their child to the school they prefer, or moving closer to work. Even in down markets, tenants should be able to find a better deal somewhere. They don’t want to risk vacating the deal they have and Landlords who would normally offer better deals in competing apartments must ask rent rates far above market in order to avoid low rent stagnation. And, since little new development occurs, there are no alternative units to move to. This story has been told many times over in San Francisco.

But ultimately, those truly affected by the housing market are the renters themselves.

Until enough housing units are constructed in the urban core to satisfy demand, rental rates will continue to creep upwards.

A COMPLETELY U N R E L AT E D TA N G E N T

iently!

Park Effic H ow t o

Scarce parking is made scarcer when you park inefficiently. Pull up to within 3-5 feet of other parked cars.

Painted Ladies in San Francisco.

D E V E LO P ME N T O P PO RT U NI T IES Calvine Auberry – 3.67 AC 20th & R Street – 0.25 AC 65th Street – 1.45 AC Power Inn – 12.76 AC Royal Oaks – 4.57 AC Meadowview – 14.89 AC Florin Station – 2.00 AC Butterfield – 3.21 AC Gilman Walerga – 1.93 AC Poplar – 1.65 AC Swanston – 2.00 AC 10th & Stockton – 1.54 AC 9th & Stockton – 0.60 AC

12th Ave – 0.25 AC MLK Blvd – 0.26 AC Lexington – 1.41 AC East Sacramento – 0.75 AC Folsom - Leidesdorff Village – 3.00 AC 58th and Broadway – 0.27 AC Fair Oaks Village – 1.01 AC 3131/3141 W Street – 0.33 AC 37th & 41st – 1.18 AC Rocky Ridge Duplexes – 1.2 AC Dixon HWY Retail – 1.8 AC 4330 Watt Avenue – 1.5 AC & More!

LAND DEVELOPMENT OPPORTUNITIES THROUGHOUT THE SACRAMENTO REGION 916.573.3300

TURTON COMMERCIAL REAL ESTATE

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Heller Pacific

LATTE FOAM. BIKE TIRE. LEATHER SATCHEL. POLISHED CONCRETE. IRON PIPES. EXPOSED BEAMS. TREE SHADE. STRING LIGHTS. HEFEWEIZEN. MUSHROOM QUESADILLA. GUITAR BY THE STEPS. VEGETABLE MARKET. SKINNY JEANS. EXTRA LARGE SLICE. SLIGHT CHUCKLE. COOL BREEZE. BOWTRUSS ROOF. ELECTRONIC BASSLINE. BAMBOO. CURED VENISON. PEOPLE WATCHING. OXFORD WINGTIPS. FLATWEAVE RUG. BRATWURST. RAYBANS. STREET FESTIVAL. ----THEREâ&#x20AC;&#x2122;S NO DENYING THAT THE MARRS BUILDING IS THE EPICENTER OF MIDTOWN.

CALLING RAD TENANTS! Office / Retail 2,186 SF Negotiable Lease Rate Turton Commercial Real Estate 916.573.3305 turtoncom.com

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So m et imes, w e g o a l it tle over the length req ui rements. . .

BITS & PIECES

W E D I D N ’ T H AV E S PA C E F O R E L S E W H E R E

M I DTOW N SC R I B B L E S

QUIZ: HOW MUCH WILL YOU ENJOY LIVING IN MIDTOWN? CONTINUED FROM PAGE 25

“I understand I can exchange my tie for a latté and a road bike?”

8. WHICH FOLLOWING BEST DEPICTS YOUR PERSONAL AESTHETIC? A) Leather. Cement. Dark Denim. “It’s a satchel!” (+10) B) Cannabis. Skinny fit.

Acrylic paint. “I’m so over the blasé familiarity of suburban life.” (+10) C) Polyester. Television.

Toaster Strudels. “We’re thinking a Tuscan-inspired theme.” (-15) C) Morning run. Fitted suit.

11 voicemails. “I have a three-pee-emm.” (+10)

150+

Wow, you probably already live down here. If not, come to your people!

80-150

Urban living may require some adjustment, but nothing a beer with frinds at Biergarten won’t remedy!

<80

You may need to wean off the suburbs with a few years in East Sac, first.

8 UNDER 8 As avid lunch-eaters, we’ve come to appreciate a wallet-friendly meal. Here are some of our favorites.

Drawn by Caroline Dale

RANT

Cars that let you cross

What appears to a be a citizenly deed is actually a violation of proper city etiquette. In Midtown, many of the pedestrian street crossings are on roads where the cars don’t have a stop sign. While it is perfectly legal for drivers to yield to people

waiting at the crosswalk, it often results in more delays and annoyance for everyone, as a line of cars backs up and the pedestrian feels pressured to hurry across the street when they could have waited for the wave of cars to pass and taken it easy.

La Fiesta / Two-enchilada Weekday Special - $7.75 I Love Teriyaki / Teriyaki Chicken Rice Bowl - $5.49 Azul / Azul Burrito Daily Special - $7.25 Bon Air Market / 29 loaded - $7.00 Roxie Deli / House Sub - $6.00 Dad’s Sandwich Shop / California Carnivore $7.95 Suzie Burger / Double Deluxe Cheeseburger $6.19 Drunken Noodle / Cashew Chicken $7.95

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G et sh*t done w hil e h a vi ng fun.

Tu r t o n C o m m e r c i a l R e a l E s t a t e

ABOUT TURTON C R A FT W e t a k e o u r c r a f t s e r i o u s l y.

Q u a l i t y, k n o w l e d g e , a t t e n t i o n t o d e t a i l . I t ’s w h a t w e d o .

C R E A T IV I T Y Not a word usually associated with commercial real estate.

We are changing that.

We a r e a b o u t i q u e f i r m m a d e u p o f f r e s h a g e n t s a n d o u t o f t h e b ox m a r k e t e r s w i t h a p a s s i o n f o r S a c r a m e n t o. We t o r e d o w n t h o s e d i v i s i v e o f f i c e wa l l s a n d c r e a t e d a c o l l a b o ra t i v e w o r k e n v i r o n m e n t w h e r e all information is shared to benefit our clients and t h e i r r e a l e s t a t e . We r e c o g n i z e t ra d i t i o n , y e t e m b ra c e t h e f u t u r e . We a r e a f i r m c o m p r i s e d o f c o m mercial real estate pioneers that think beyond the s c o p e o f w o r k t o g e t t h e jo b d o n e .

CHARACTER W h e t h e r i t s p e o p l e w e w o r k f o r, o r people who work for us, we value p a s s i o n , h a r d w o r k , a n d h o n e s t y.

Whether tenant or landlord, buyer or seller, we combine industry knowledge, know-how, and resources with creativity, hard work, and a relentless passion to beat client expectations to yield results. Contact us anytime to discuss the perfect property for your firm or how to maximize the value of your own property.

Interested in learning about the market or working for Turton Commercial? Let’s grab a coffee at Temple or a beer at LowBrau. Our treat.

© 2018 This information has been secured from sources believed to be reliable. Any projections, opinions, assumptions or estimates used are for example only and do not constitute any warranty or representation as to the accuracy of the information. All information should be verified through an independent investigation by the recipient, prior to execution of legal documents or purchase, to determine the suitability of the property for their needs. Logos and/or pictures are displayed for visual purposes only and aare the property of their respective owners.

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