GRID Magazine - Spring 2021

A glorious spread of tomatoes from the Midtown Farmers Market

S ACR A MEN T O COMMERCIA L RE A L E S TAT E, DE V ELOPMEN T, A ND CULT URE

13

Should you be subleasing? We decide for you!

ISSUE EIGHT

23

What Sac office workers want - a data analysis!

33

Why Affordable Housing is so expensive!

TURTON

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

SPRING 2021

Scan for brochure:

INSPIRE MIDTOWN GEM: 1919 19 TH STREET OWNER-USER OR INVESTMENT $5,900,000 - 18,685 SF 916.573.3300 TURTONCOM.COM

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T U R T O N CO M .CO M

A FEW WORDS FROM

I grew up in a blue collar unincorporated neighborhood of Multnomah County Oregon located between the cities of Portland and Gresham. It rains in Portland - and I don’t mean a little. It either rains or it’s overcast 250 days of the year. They average 43 inches of rain annually or 3.6 inches per month.

That is Sacramento’s absolute wettest month multiplied by 12.

My junior year in high school it downpoured for two weeks straight. A deluge of biblical proportion that submerged much of the lower elevated areas of the Centennial School District. About fifty student homes and cars were basically destroyed. Back in those days it was everyone for themselves. The community bonded to help the less fortunate and I recall being particularly proud of the small contribution our high school newspaper made to raise funds for the desperate. Back in those days not many had voices, but we did. And we used ours to help.

The torrential rain was immediately followed by several weeks of sun and, for many, the result was a glorious landscape of colorful flora providing residents with some of the best walks and hiking of the year. Perhaps many years. But for others it was a catastrophe as they attempted to salvage their homes and even their lives. It was a surreal paradox of two completely different experiences of the same event. Everybody experienced an equal amount of rain, but not everybody was impacted equally.

Metaphorically speaking, we all just experienced a major storm. A pandemic storm. But we were not all impacted equally. Compare the experiences of a frontline worker versus an insurance adjuster. An RV, pool or home improvement salesperson versus that of a soft goods retail salesperson. An indoor exercise machine manufacturer versus an exercise club owner. A residential realtor versus a commercial realtor. An administrative employee versus a personal service professional. A grocery store owner versus a restaurant owner. A parent of a teenager versus parents of a newborn, or perhaps no children at all.

Perhaps hit hardest are the restaurateurs. Closed, open, open 20%, hiring employees, laying off employees, purchasing inventory, tossing inventory, twice, thrice, outdoor dining only in the middle of winter, wow.

Local entrepreneurs apparently viewed as acceptable collateral damage in the wake of a viral tsunami. It is a wonder any of them survived at all.

We all experienced the same storm, but we were not all impacted equally.

Many of these restaurant owners and employees are our friends and no one works harder than they do. Impassioned artisans whose business is also their life. The best of the best in the Sacramento Region and, as far as Turton Commercial Real Estate is concerned, irreplaceable.

In this edition of GRID, as a small gesture toward our local culinary artists who’ve been through the gauntlet, we’ve included a removeable menu of our office’s 100 favorite restaurants in the urban core. Each restaurant in the menu has a QR code that takes you to their website where you can make reservations, order food to go, or even have it delivered. We hope you keep this menu for years and support these pillars of our community.

KEN TURTON - PRESIDENT

2131 CAPITOL AVE, STE 100, SACRAMENTO, CA 95816

PRESIDENT

KEN TURTON

Lic. 01219637

916.573.3300 | kenturton@turtoncom.com VICE PRESIDENT

VICE PRESIDENT

VICE PRESIDENT

SENIOR DIRECTOR

SENIOR DIRECTOR

DIRECTOR

AARON MARCHAND

Lic. 01711650

916.573.3305 | aaronmarchand@turtoncom.com

JON LANG Esq.

Lic. 01934934

916.573.3302 | jonlang@turtoncom.com

SCOTT KINGSTON

Lic. 01485640

916.573.3309 | scottkingston@turtoncom.com

PATRICK STELMACH

Lic. 01964999

916.573.3314 | patrickstelmach@turtoncom.com

KONRAD KNUTSEN

BROKERAGE

KEN TURTON

916.573.330 0

Lic. 01998499

916.573.3313 | konradknutsen@turtoncom.com

ZACHARY HOOKER

Lic. 02013574

916.573.3315 | zacharyhooker@turtoncom.com

DIRECTOR

DAVID KHEDRY

Lic. 02063469

916.573.3303 | davidkhedry@turtoncom.com

DIRECTOR

MATT AXFORD

Lic. 02124801

916.573.3308 | mattaxford@turtoncom.com

DIRECTOR

JACK SCURFIELD

Lic. 02127988

916.573.3316 | jackscurfield@turtoncom.com VP OPERATIONS & MARKETING CREATIVE DIRECTOR

MARKETING ASSOCIATE

BROOKE BUTLER

Lic. 02086576

916.573.3301 | brookebutler@turtoncom.com

COREY LAU 916.573.3304 | coreylau@turtoncom.com

JUSTINE WONG

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

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916.573.3304 | justinewong@turtoncom.com

OUR SERVICES

CONTACT US

Landlord Representation

2131 Capitol Ave, Ste 100

Tenant Representation

Sacramento, CA 95816

Buyer/Seller Representation

916.573.3300

Building Valuations

TURTONCOM.COM

Property & Project Mgmt.

Instagram: @turtoncre

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Painst a ki ngly des i gned b efore a li ve a udi ence !

ISSUE 8 | SPRING 2021

CONTENTS The closest some will ever get to Midtown!

SINCE LAST ISSUE...

14

It’s All Coming Back Now

19

Bold Moves

21

Urban Runner’s Paradise

23

What Local Office Workers Want

28

CRE Landlord Pro-tips

33

Building Costs of Affordable Units

36

A Chat with Katie Valenzuela

40

About Turton Commercial

Top: A playful mural at 1914 16th St by Jessie Unterhalter & Katey Truhn (@jessieandkatey). Left: “Rosie the Revelator”

by Lauren Ys (@squid.licker) at 1804 14th Street. Right: An adventurous mural by Mateus Bailon at 1225 R Street (@mateusbailon).

QUESTIONABLE RELEVANCE

Flowchart: Should I Sublease?

“ME” TIME

13

TRADITIONS

While You Were Away

Eye-rolling copyright claims: 1 Parking tickets successfully contested: 2 Dozens of donuts brought in by Scott: 14

NEW IDEAS

11

WHOLESOME FUN

Splitting Hairs: Barbershops

THE HUMAN MIND

08

SECRET SAUCE

Don’t Mind if I ‘ADU’

Net gain of team members: 1 Times dishwasher's been run: ~20 New words invented: 12

THE ELEPHANT IN THE ROOM

07

ENDANGERED SPECIES

Dates at Urban Parks

POTENTIALLY-LAME JOKES

05

Marriage proposals: 1 Team happy hours at LowBrau: 6 Team happy hours Ken joined: 1

CONSOLIDATED INFORMATION

New listing acquired: 56 Perished office plants: 0 Oak Park homes bought: 2

ECONOMIC PROJECTIONS

k for!

Didn't as

SUGGESTIONS

Stats yo u

113 0 K S T R E E T

Scan for brochure:

600 - 92,000 SF OFFICE SPACE FOR LEASE 1 BLOCK FROM THE STATE CAPITOL 916.573.3300 | TURTONCOM.COM

1100 11th Street

unmatched opportunity available for sale: 1100 11 th street office + retail - $10.5 M - 24,776 SF

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Qu ic kl y ma kes s i ngle p eop le wi thi n the vi ci ni t y in c re d ibl y j e al o u s !

UNDERRATED:

PARK DATES

JUSTINE WONG - MARKETING ASSOCIATE

One thing we learned during the pandemic: dates at parks in the city are quite superb.

Sometimes, the fast pace of urban life becomes overwhelming and prompts you to slow down, lay a blanket down on a nice plot of grass, and hang out with your loved one in the shade. It’s good for your health; it’s free; and, when you inevitably post pictures of it online, people will think you’re an interesting couple who does more than just watch reruns of The Office and occasionally go to restaurants. And, luckily for Sacramentans, there’s a park ideal for everyone’s preferred vibe, activity level, and part of town. Consult our specialized matrix of options below!

Relationship level?

First date

Steady relationship

Long-term / married

With kids

MIDTOWN PA R K S

DOWNTOWN PA R K S

NEAR-GRID PA R K S

SPECIAL PA R K S

Try: Midtown Sushi or food truck

Try: Zocalo or Crepeville

Try: Freeport Bakery or Marie’s Donuts

Try: Beast + Bounty or Ryujin Ramen

Ease the first-date jitters with a nice, unstructured stroll through the Wednesdays at Winn farmers market at Winn Park!

Snag a cute first picture with your dewy-eyed date at the Capitol Park Rose Garden! (go on protest days and eyes could be even dewier)

Pick up some pastries and visit the legendary hordes of friendly mallard ducks who dominate the ecosystem at Land Park!

Test your potential suitor’s co-parenting abilities by taking your pup to play at the shaded Truitt Bark Park!

Try: Centro Cocina or Jungle Bird

Try: Vallejo’s or Fish Face Poke Bar

Try: Oak Park Brewing or La Venadita

Try: The rope swing over the water

Picnic against the lively urban scene at Marshall Park before rendezvousing with friends in Midtown to show off your date!

Rent JUMP Bikes and zip around on a self-guided tour of Downtown murals before eating takeout at the tranquil Southside Park lake!

Play a few holes of disc golf before grabbing produce at the Oak Park Farmers Market in McClatchy Park on Wednesdays / Saturdays!

Feel miles away from the city as you chill on the sandy, beachy banks of the American River at Sutter’s Landing!

Try: Tres Hermanas or TBar

Try: Magpie or R15

Try: Hop Gardens or Pangaea Bier Cafe

Try: Selland’s

Cross “cliche performative romancing” off your list by embracing your lover on the bridge over the ponds at Sutter’s Fort!

Resist the urge to climb those tempting banyan trees as you walk off your lunch at Sac’s chalk art epicenter: Fremont Park!

Try: New Roma Bakery or Old Soul

Try: Crocker Cafe or Polanco

Take the gang to the quiet, heavily-shaded Grant Park and let the kids loose in Midtown’s only gated playground!

Justine’s preferred CHICKEN SAMMIES

Revel in the orbiting parade of the Deepen your connection as you neighborhood’s cutest dogs as you ponder the finite nature of existence sip a sneaky glass of wine on a amongst the gorgeous botanical blanket in Curtis Park! specimens at the City Cemetery!

Try: Tiferet Coffee House

Decrease your child’s likelihood of Befriend other parents as you throwing a tantrum at the Crocker provide your kiddo with a foundaArt Museum by exhausting them at tional Sacramento experience: the nearby Crocker Park beforehand!

McKinley Park playground!

Bawk!: Bawk’n Hot Chicken Sandwich - comes with fries Shake Shack: Chick’n Shack - get the vanilla frozen custard, too The Porch: BBQ Chicken Sandwich - ask them to make it hot

Try: La Terraza or Railroad Fish & Chips Demonstrate your unending love for your family by enduring a few hours of exploring the Old Sacramento Waterfront!

World Famous HOTBOYS: Sando Combo - mild+ heat - add on fries and extra money sauce Nash & Proper: The Sammich - medium heat (hot!)

South: Hot Chicken Sandwich - also grab a side of Kale greens fixins’

Price/Door: $650,000 | Cap: 5.06%

Price/Door: $542,500 | Cap: 4.30%

Price/Door: $446,000 | Cap: 4.80%

Price/Door: $394,118 | Cap: 4.65%

we CAPTURE THE

VIBE EARN TOP DOLLAR WHEN YOU LIST MULTIFAMILY WITH TURTON COMMERCIAL.

916.573.3300 | TURTONCOM.COM

Price/Door: $588,725 | Cap: 4.55%

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As w e enter the a ge of na notechnology, get a n earl y ed ge by bu il d in g a n an o - d ev el o pm en t !

BUILD A RENTAL IN MY BACKYARD?

Below: Stunning new backyard developments like this one at 2217 Capitol Avenue are cropping up in Midtown.

DON’T MIND IF I ‘ADU’ ZACHARY HOOKER - DIRECTOR

W

When I walk through Midtown’s cozy alleys, I’m charmed by the different eras of alley houses that locals developed in their backyards.

Not only do these little buildings densify our city and contribute to its urban character, they also provide tons of value to their owners.

If you’re a residential owner seeking ways to increase your property’s value, an accessory dwelling unit (“ADU”) might seem like a logical choice - and it probably is. ADUs are ideal for junior investors lacking the financial oomph to get involved with bigger multifamily assets and extra space. But becoming a developer even for a bite-sized urban infill project like this can feel daunting.

How much does it cost? How long does it take? How will I give up nude sunbathing in the backyard? The list of unknowns feels endless, but don’t let the edge of your comfort zone deter you!

This is where people make money.

Generally speaking, the income generated from an ADU will cover its main-

ment !

Develtoip meline

tenance costs and, with rental rates in Sacramento lately, can pay for its construction within a few years. Some ADUs in the urban core are renting at over $3K per month!

It is very feasible that a single-unit or duplex ADU could double the value of a property, given the right circumstances. In some cases, the lots can be split and buildings sold separately to maximize sale proceeds even more.

Backyard developments are a smart option for everyone from savvy homeowners to more seasoned investors with five to ten existing rentals.

Still sound overwhelming? That’s okay! See our simplified development timeline below!

THE ADU

5

Obtain your certificate of occupancy to make it official! 2 weeks

7

Meet with TCRE to explore what market-rate rent for your new ADUs should be. 3 days

3 months

Consider the design for your project and have TCRE set you up with reputable architects, engineers, and general contractors. 6 weeks

6 months

3

9 months

Get a financial pre-approval with a well qualified Lender to obtain a construction loan. 2 weeks

12 months

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2

Check your local council requirements, building codes, and zoning laws to max out the possibilities, or explore keeping it compact. 1 week

4

Build it! (Or rather, allow your contractors to) 9 months

6

Survey your property again and meet with a civil engineer and the City of Sacramento to do a proper parcel split (optional). 4 weeks

8

Hire a property manager (optional) and lease out the space to a cool, qualified tenant! 1 week

9

Hold your shiny new asset for the long-term or reach out to us to see what it might be worth in today’s market!

CO M M ERCI A L RE A L ES TAT E

GLOSSARY OF TERMS New phrases confusing for the uninitiated finally clarified!

1 Shrinkage A nod to a legendary Seinfeld moment, this phrase is a coded innuendo referring to the contraction or reduction of space required by office tenants resulting from the new work-from-home paradigm.

Tenant: "I’m one of three people in the office lately and it feels like it’ll be this way for a while. Can you help us sublease some space?"

Agent (aside to coworker): "Looks like they just got out of the pool...”

Coworker: “Significant shrinkage!”

2 Blend and extend A mechanism that provides tenants with short term concessions, like a few months of free rent, in exchange for that tenant signing a much longer lease and amortizing the cost over the term.

Landlord: "The tenant says that they won’t be able to pay rent for up to a year due to the shutdowns."

Agent: "Just increase the lease to 20 years and amortize the free rent over the term. Blend and extend, baby!"

3 Al-Fresco dining A fanciful Italian phrase appropriated

by American restaurants to refer to hastily-assembled outdoor seating on sidewalks, parking spaces, and streets (but hey, it’s actually pretty nice!)

Person at restaurant: "Eating out here is pretty fun, but now I’m in the direct sunlight and I spilled my drink because the table’s on a slope."

Their friend: "Al-Fresco giveth and Al-Fresco taketh away."

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Ah. I se e your s i gni fi ca nt other ha s b een cuttin g yo u r h air...

SPLITTING HAIRS

BARBER SHOPS ON THE GRID THAT WE REALLY DIG MATT AXFORD

- DIRECTOR

They say that “hair is the crown you never take off.” With that being said, some of us celebrate the coronation with the same fervor that we show for grocery shopping and oil changes. Apathetically driving to the nearest chain location where we read tattered magazines and make small talk about the price of gas. But, as the late John D. Rockefeller advised, “don’t be afraid to give up the good and go for the great.” So to help you trade in the frankfurter for the filet mignon, here’s a look at some of our favorite barbershops and why you should schedule an inaugural visit.

T 1

Nisei Barber Shop

Vibe: Dick Van Dyke meets Friends

1505 4th Street

At first glance you might mistake Nisei for a Leave It To Beaver set, and rightfully so.

While Cory Umezu has been cutting hair at Nisei for 16 years, his grandfather started the shop 69 years ago in 1952. And the yesteryear vibe extends beyond the walls as every passerby pauses to greet Cory with a cheerful neighborly “hello.” From the Kings to the climate, Cory is very eager to chat about all things Sacramento, especially how “it’s the perfect middle ground city.”

2

Poli’s Barber Shop

Vibe: Cars and coffee meets Reader’s Digest

1113 22nd Street

Like some sort of rockabilly Catholic hymn, Poli’s flips convention on its damn head.

From prayer beads to straight razors, hotrods parked under the watchful eye of La Madonna, and more general eclecticism, Poli’s exhibits an eclectic but warmly welcoming persona. Quickly reaching icon status in the six years since its inception, the former law office turned barbershop is appointment only but assuredly worth the wait if not just to hear the stories of how Poli fought an elk or lived with a pet goat...both of which are hanging on display. In fact, between the riveting stories and the visual charcuterie, it’s guaranteed that time will fly as the staff exhibit a meticulous approach to your hair.

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Tailored

Vibe: Hugo Boss meets America’s Got Talent

HONORABLE MENTIONS We couldn’t fit them all! Here are more of our favorite barber shops on the Grid:

Iverson’s Barber Shop 1012 10th Street Yellowbelly’s Barber Shop 2014 28th Street The 916 Cuts 916 21st Street Barber Blues 1401 E Street Bishop’s Barber Shop 1715 R Street #140

608 12th Street

Tailored’s sleek interior lines and clean polished decor cater to a certain level of fashion-forward sophistication. Gone is the omniprevalent smattering of paraphernalia of most barbershops and in its place spartan satin white walls with the infrequent precisely placed plant. The owner, Chris Long, is a self-made man with the photo of the trailer that was his childhood home hanging as an eternally present reminder of his humble beginnings. Five years in the industry and three years into his American dream of entrepreneurship, Chris still wakes up every morning enthralled with what he does, and his haircuts show it. The five stylists working there will do everything from a simple trim to coloring for the more seasoned among us.

Top: Bishop’s Barber Shop at Ice Blocks boasts rad murals inside! Below that: Cory Umezu proudly stands in front of his shop. Bottom: Poli’s is ALWAYS poppin’.

T URTO N CO M M ERCI A L RE A L ES TAT E - 916.573.330 0 - T URTO N CO M .CO M

BR B R AND DEF D E F INI IN I N G RRETAI ETA ILL

SCAN FOR PROPERTIES

UR B A N R E TA IL SPA CE S F OR L E A SE !

THE HARDIN - THE PRESS - BEL VUE - CATHEDRAL SQUARE - SACRAMENTO COMMONS - H16 - LINQ - THE FORUM 730 I - 731 K - 818 K - 830 K - 1000 K - 1030 K - 716 10TH - 1130 K - 330 12TH - 1414 K - 1430 Q - 1020 16TH 1627 16TH - 1616 I - 1630 I - 1705 I - 915 20TH - 2420 K - 2523 J - 2600 J - 401 BROADWAY - 1817 BROADWAY

w e N

s n o z i r o H T C I R T DIS R E IV R E TH

1/3 LAND SLATED FOR REDEVELOPMENT REMAINING OPPORTUNITIES: 211 N 16 TH STREET 701 DOS RIOS 200 N 16 TH STREET 1330 N B STREET

1.69 4.17 4.29 9.30

ACRES ACRES ACRES ACRES

$3,250,000 $3,500,000 $4,990,000 $8,995,888

TURTONCOM.COM

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Not y our gra ndma’s Sa cra mento!

WHILE YOU WERE AWAY...

LOTS OF COOL NEW THINGS ARE HAPPENING IN SAC SCOTT KINGSTON - VICE PRESIDENT

I

Is that a new high-rise tower? Have you tried that pizza place? Will the new Convention Center still host furry meetups? While everyone was distracted with a global crisis, Sacramento quietly grew. Here’s what’s new!

DOWNTOWN D E V E L O PM E N T S Memorial Auditorium $16.2 M project to add a loading dock and improve the acoustics, stage and lighting.

Address: 1515 J Street Status: Completed SF: NA Completion Date: 2020 The Carlaw Redevelopment of the former New Helvetia Theatre. 26 units and 16,000 SF of retail.

Address: 1024 R Street Status: Completed SF: 41,215 SF Completion Date: 2020 Sacramento Commons Two 7-story, mixed-use residential towers with 436 units and 5,890 SF of retail space.

Address: 1421 & 1501 5th Street Status: Underway SF: 612,126 SF Completion Date: 2021 Cathedral Square 7-story, mixed-use residential with 153 units and 10,250 SF of retail.

Address: 1030 J Street Status: Underway SF: 188,700 Completion Date: 2022

Convention Center Adding additional ballrooms, larger exhibit hall, and more meeting space.

Address: 1400 J Street Status: Underway SF: 300,000 Completion Date: 2021 The Frederic Mixed-use project consisting of 162 condominiums and nearly 7,000 SF of retail.

Address: 601 Capitol Mall Status: Underway SF: 600,000 Completion Date: 2021 State Natural Resources Building LEED Silver 21-story office building to house 3,000-3,500 employees.

Address: 8th & O Street Status: Underway SF: 838,000 Completion Date: 2021 Capitol Annex Swing Space 10-story State office building that will serve as a temporary space for CA lawmakers.

Address: 1122 7th Street Status: Underway SF: 472,000 Completion Date: 2021 Clifford L. Allenby Building New office building at the site of the CA Department of Food and Agriculture Annex Address: 1215 O Street Status: Underway SF: 370,000 Completion Date: 2021

DOWNTOWN R E S TAU R A N T S Darling Aviary A swanky meets eclectic rooftop bar at The Hardin by the Golden 1 Center.

Address: 712 K Street Instagram: @darlingaviary Plant Power Fast Food Vegan spot slingin’ everyone’s favorite American fast food items!

Address: 1100 R Street Instagram: @plantpowerfastfood Odd Cookie Bakery Café & Bar Eclectic food with a variety of sweet and savory options to choose from.

Address: 1015 9th Street Instagram: @oddcookiebakerycafe MIDTOWN D E V E L O PM E N T S The Press 277 residential unit project - formerly the Sac Bee parking garage.

Status: Completed SF: 440,510 Completion Date: 2020 Address: 2000-2098 Q Street 1430 Q 8-story mixed-use building with 75 units over 8,700 SF of retail.

Status: Completed SF: 158,355 Completion Date: 2020 Address: 1430 Q Street H16 95 apartment units with live-work units on the first floor.

Status: Completed SF: 76,144 Completion Date: 2020 Address: 1601 H Street

Fort Sutter Hotel Six-story, 105-room hotel with Café Bernardo located on the ground floor.

Status: Completed SF: 76,144 Completion Date: 2020 Address: 1308 28th Street Eleanor Apartments 95 apartment units and live-work units with full mural building wrap.

Status: Completed SF: 76,144 Completion Date: 2020 Address: 501 16th Street The Mansion Former Clarion Hotel will be replaced by 186 units and 3,010 SF of retail.

Status: Underway SF: 156,481 Completion Date: 2022 Address: 700 16th Street MIDTOWN R E S TAU R A N T S Pizzasaurus Rex Delicious pizza joins the popular 24th and K Street intersection.

Address: 2322 K Street Instagram: @eatpizzasaurusrex Kin Thai Street Eatery Authentic Thai street food served up at the MARRS Building.

Address: 1050 20th Street Instagram: @kinthaistreeteatery Midtown Spirits The first distillery in the Sacramento city limits since the prohibition.

Address: 1717 19th Street Instagram: @midtown.spirits Top: A view of the underway Lavender Courtyard development with The Mansion in the background. Left: The Press Building’s leasing office entrance on 21st.

SUBLEASE

& SAVE Scan for Properties:

TURTON

OFF THE RACK SACRAMENTO’S OFFICE SUBLEASE MARKETPL ACE

T URTO N CO M .CO M / SUBL E A SE

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A pply directly to the forehead!

ASK A FLOWCHART!

SHOULD I SUBLEASE? MATT AXFORD

- DIRECTOR

Real estate decisions are hard. Ask our all-knowing, ever-present, eternally-compassionate Office Sublease Flowchart what you should do, whether you’re looking for a space or have too much!

I listened on my phone as the business owner spelled out what could only be described as a fiscal nightmare. The business was booming and their firm had just signed a lease on 10,000 SF of beautiful creative office space. New furniture was just delivered, and the vibe was virile and vivacious.

Fast forward a couple of months and employees are happy, productivity is high, and the new standing desks with complimenting dual monitors are collecting dust as the world quickly traded the cubicle for the home office. Whether you own a business, an organization, or a high-functioning pyramid scheme the odds are that at least once in the last two years you shook the piggy bank and thought, “should I

move?” or “can I sublease this space out?”

As the saying goes, that is the $64,000 question. Or in the above-mentioned story, the $100,000+ question.

There are options out there, but real estate can be enigmatic, esoteric, and exhausting to navigate. Now I know what you’re thinking, “If only there was a lifestyle brand masquerading as a real estate firm. Then I’m sure their boyband look-a-like clones could put together a simple and yet humor laden flowchart to help me steer through this convoluted problem and save enough money to realize my lifelong dream of RV’ing to Long Beach, Washington to see the world’s largest frying pan.” If only....

START HERE!

Are you currently a business owner leasing office space?

Yes

No

just the right amount of space

You have _____

And is business good?

Yes

Are you in a space that vibes with your company culture?

No

a surplus of space

a shortage of space

Yes

Are you operating as efficiently as possible?

Yes

No

No

a personal issue with the landlord and want to move

Do you want to be?

No

Oh. Uhh, okay then.

Carry on.

Mus ic to

to!

Make deals

Yes

Do you enjoy throwing money away?

No

Talk to TCRE and look into subleasing!

Meticulously curated to help you make the most money!

Yes

Yes

Great! Stay put and buy a mid-80s Jaguar!

A Little Less Conversation - Elvis Presley Money (Pink Floyd cover) - Velvet Revolver Taking Care of Business - Bachman Turner Overdrive I Get Money - 50 Cent A Hard Day’s Night - The Beatles

Huh. You seem business savvy. Wanna hang out?

No

I’ll bring over some blurays and a pizza!

Work Bitch - Britney Spears Bigger Than My Body - John Mayer Fighter - Christina Aguilera All I Do Is Win - DJ Khaled Billionaire - Travie McCoy ft. Bruno Mars

Good Life - OneRepublic Eye of the Tiger - Survivor Pump It - Black Eyed Peas The Gambler - Kenny Rogers Buy Me A Boat - Chris Janson

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We w ere told there would b e a p i zza p a rty i f w e w e re w e l l - be h av ed ...

IT’S ALL COMING BACK, NOW

WHAT ARE YOU MOST EXCITED ABOUT RETURNING TO THE CITY? ZACHARY HOOKER - DIRECTOR

P

Parties! Concerts! Kissing strangers! Every Sacramentan has something they’re looking forward to doing again now that we’re adding the prefix “post” to this pandemic. We asked some friends what specifically they’re most stoked about and their responses were... interesting.

“Downtown nightlife! My friends are already planning a big game night at Punch Bowl Social.”

Jason Holley West Sac “Open mic nights! Tuesdays at Kupros; Saturdays at Shine Café; I can’t wait for the music community to reconvene for in-person jams!”

Quynn Meyers-Keller East Sac “As a power lifter, the gym.

I used to lift at Cal Fit on K five days a week. Push-ups in my apartment living room just aren’t cutting it!”

DeShawn Brown Newton Booth Have you ever had one of those 2:00 AM bacon-wrapped hot dogs with caramelized onions? The ones you gratefully devour at the pop-up food cart outside of Mango’s after a night of drinking? Yeah, THAT. That’s what I miss. I’ll know the world is okay when I can end my Saturday that way.

Alec Gordon Midtown

“Some sense of normalcy. I’m really looking forward to all businesses being back open and small events to come back. The energy of downtown Sacramento on a summer evening is wondrous!

Ryan Nord Midtown “Honestly? Sweaty dancing at Badlands and chaotically making out with a stranger in the bathroom.”

Anonymous Med Student Boulevard Park

Kiersten Kelly Oak Park “I won’t be taking anything about this awesome city for granted anymore. I used to be a bit of a homebody and the lockdowns have made it clear that I want to get out more.

Life is about having good experiences. 2021 is the year of “yes” for me!

“As someone with crippling allergies and pale skin, I’ve missed eating inside at restaurants. I can’t taste my food after a sneezing fit. Lively Al-Fresco street scenes Morgan Conley Oak Park

are cute, but I can’t hang.”

"I’m gonna get weird at Faces."

Scott O’Halloran - Auburn

Top: The light.wav art show in 2019 that fused art with technology through light, space and sound. Left: The dancefloor at Faces gets pretty lively even during the day (in normal times). Bottom: Ice Blocks on R Street is always jumpin’!

YOUR WORKDAY DESERVES

MIDTOWN TURTON

UNION HOTEL

FOR SALE - Mixed-use building with hotel, bars and more on the Old Sacramento Waterfront - $6.5M T URTO N CO M M ERCI A L RE A L ES TAT E - 916.573.330 0 - T URTO N CO M .CO M

7

“I’m excited for the freedom to see live music in the city like THIS is Midtown!”

Anastasia Hooker Midtown

“I can try on clothes at local boutique shops without feeling gross!”

Amanda Osteen Downtown

“I NEED to get drunk at Faces and stagger down to Jalapeno’s for some 1:00 AM veggie tacos. Those potato tacos are FIRE.” Kayla Simmons Tahoe Park

“I’ve really missed drunken 2nd Saturday art walks!”

Scott Polaske East Sac

“Stoked for the return of concerts! I’ve already got tickets to a bunch of shows at Harlow’s and Ace of Spades this summer!”

Jack Anderson Midtown “I’m looking forward to all the farmers markets returning to the Grid because the Midtown one has been freakin’ packed.”

Anton Rudenko Midtown

“During the pandemic, I learned how to make macrame plant hangers out of twine and beads. It’s super fun! And now that they’re reopening, I’m excited to try selling my creations at the farmers markets!”

Caroline Dale Oak Park

“Umm, I’m gonna go with DATING. I tried a couple Zoom dates and it felt more like a job interview than a natural first meeting.”

Natalie Fauss - Land Park “I’m loving that I can smile at people on the street and see them smile back again.”

Joey Swinton Midtown

“My husband and I have already planned out our perfect post-Covid night in the city.

First, dinner at Mulvaney’s.

Then we’ll head to DOCO for a Kings game (we’re big fans), after which we’ll go to Old Sac and maybe have a nightcap on the Delta King!”

Ryann Dean Arden Oaks

Weirdness

Dataphilia:

What contributes most toward Midtown culture?

“I’m just excited for the energy of the city! Last year really made me appreciate it.”

Simone Rivadeneira Mansion Flats

Murals

What do you think contributes most to the vibe of our city? We gave our coworkers 12 points to distribute amongst qualities they value most and averaged them. Each quality maxes out at 5 points.

“I’ve misssed trying new happy hour places with my coworkers!”

1.5

Farmers markets

2.25

Molly Carlsen Folsom

4.00

.75

n=8 Trees

2.00

Lively restaurants

Top: A bartender at Flamingo House Social Club on K Street mixing up some fruity drinks.

Bottoms up!

In-person meetings Having to commute again Dave Herrera’s country album Being back in the office Dancing at the club Mosh pits Dating in-person THINGS EVERYONE’S How long it’s been since they’ve read “in these difficult times” The vaccine not including a free copy of Windows 10 No longer keeping distance from others UPSET ABOUT No longer being able to use the virus as an excuse Heightened FOMO potential Restaurants getting busy again Going to Kings games Resuming gym memberships

THINGS EVERYONE’S EXCITED ABOUT

1

Some crave lots of action...

“Going out on a Friday night was soooo depresing during [the pandemic]. It was hauntingly quiet in front of LowBrau where I normally am surrounded by dense crowds of people in the street. I’m SO ready for the big events and block parties again!”

Jessica Jones - Midtown

...while others seek peace & quiet

It may sound weird, but I miss how quiet the nearby nature trails and river paths were before everyone got bored during lockdown. Those areas used to be much less busy and that made them more serene to me. So I’m looking forward to people getting off the trails and back to their normal lives!”

Joel Ronsheimer - Midtown

MUSINGS ON THE COVID-15

Kyra Klopp Folsom

“The pandemic wasn’t good for me. No sickness, I just gained tons of weight... So, for me, I’m eager to have things that get me out of the house again!”

2,101-15,366 SF FOR LEASE

6,823 SF FOR LEASE

1,885-2,647 SF FOR LEASE

1,000 SF FOR LEASE 6,314 SF FOR LEASE

3,230 SF FOR LEASE

COMPANY CULTURE STARTS WITH YOUR OFFICE SPACE

TURTON COMMERCIAL REAL ESTATE | 916.573.3309 | TURTONCOM.COM

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Finding opportunities during chaotic times? How unscr upulous! The absolute madman!

WHILE SOME PLAYED IT SAFE, OTHERS MADE

BOLD MOVES DAVID KHEDRY - DIRECTOR

W When the turd hit the proverbial fan, most avoided uncertainty. Makes sense, with the whole economic shutdown and all, right?

But if the real estate industry has taught us anything, it’s that new opportunities always reveal themselves during a crisis.

Well, that, and also that email signatures can be a lot longer and more elaborate than you’d expect...

Garrett Larsson Rhombus Systems Moved to: 1920 20th Street 14,323 SF

Chris Johnson Nation’s Finest Moved to: 200 K Street, Ste 220 1,600 SF

Lauren De Valencia y Sanchez Stefan George & Associates Moved to: 1121 L Street, Ste 606 500 SF

Rhombus Systems moving into their new space at 1920 20th Street.

Some of our clients moved their offices to Sacramento’s urban core during the Covid-19 pandemic. Why? To satisfy your intellectual curiosity, we asked them!

You moved to the Sacramento grid during the pandemic?

What made you do that?

How did the pandemic impact your space design?

Did moving at this time change your 1-5 year plans / goals?

Necessity. Our prior lease was up.

Beyond that, we wanted to get a space of our own. For our work, it’s very important to have access to the entire building.

We avoided shared resources like restrooms or elevators. That might change in the future, but for now we want to be in control of all the amenities. We felt that was important to bringing our people back into the office.

I don’t think so. We’re very bullish on the Sacramento region and expanding here for years to come.

We saw Sacramento as a key location as the hub of government services.

Normally it’s expensive, but we were able to negotiate a fair deal during the crisis.

This location is smaller than you might have previously expected because remote work will now become normal for us. Our new space allows for “drop in” use by those who need it as well as permanent offices for leadership.

It made us develop a more flexible planning style at least until the pandemic outcomes are more understood.

We still need to adhere to our growth plans as our business (support for veterans) is not going away.

Our ability to negotiate a fair deal during a crisis made that provision of support even smoother.

It made me think twice about how I was picking office space. COVID-19 meant I wouldn’t be physically present all of the time this year. Yet, I do value a secure, private office to do focused work. I do plan for growth, yet I don’t see needing to expand right away.

Yes, positively, and I feel good about my space for the foreseeable future.

I ultimately decided having my own space would align with the gradual growth I had planned. It’s good to have a home base near the State Capitol, for both work and visitors.

T URTON COMMERCI A L R E A L ESTATE - 916.573. 3309 - T URTONCOM .COM

1725 23 STREET RD

Scan for brochure:

VALUE-ADD INVESTMENT/DEVELOPMENT SITE ON THE R STREET CORRIDOR!

$10,575,000

Zocalo

1801 Capitol Ave

3135 Folsom Blvd

Kru Contemporary Japanese

South

2005 11th Street

1800 L Street

Aioli Bodega Espanola

1050 20th Street

LowBrau Bierhalle

From left to right: Ahmed Abueita (Rick’s Dessert Diner), Noe Hernandez (Zocalo), Ryan Rose (Zocalo), Jimmy Johnson (Zocalo), Ernesto Jiminez (Zocalo), Rob Archie (Urban Roots, Pangaea, Bawk!), Takumi Abe (Kru), Billy Ngo (Kru, Fish Face Poke Bar, Kodaiko Ramen), Randy Paragary (Paragary’s, Centro, Cafe Bernardo, R15, Berkley Bar, Wiki Bar), Dane Blom (Grange), N’Gina Guyton (South), Ed Roehr (Magpie Cafe), Toki Takehara (Binchoyaki), Janel Inouye (Magpie Cafe), Craig Takehara (Binchoyaki), Patrick Mulvaney (Mulvaney’s B&L), Aziz Bellarbi-Salah (Ailoi, Grand Patisserie Capitale), Randall Selland (Sellands, The Kitchen, Ella, OBO’), Brad Cecchi (Canon), Tyler Williams (Tank House, Jungle Bird, Ten Ten Room), Kimio Bazett (Golden Bear, Hook & Ladder), Garrett Van Vleck (Shady Lady, B-side, Field House), Michael Hargis (LowBrau, Beast + Bounty, Milk Money, Love Child), Ernesto Delgado (Mayahuel, La Cosecha, Mesa Mercado).

2401 J Street

Rick’s Dessert Diner

ON THE GRID

Restaurants

A convenient index of Turton Commercial’s 100 favorite restaurants in Sacramento’s Urban Core!

Camden Spit & Larder

de Vere’s Irish Pub

Cafe Bernardo

Darling Aviary

Burgers & Brew

1730 L Street

Crepeville

1409 R Street, #105 & 1616 J Street

712 K Street

1431 R Street

1521 L Street

555 Capitol Mall, #100

2226 10th Street

Binchoyaki Izakaya Dining

1409 R Street, #2

1701 R Street

Beast + Bounty

Bawk! Chicken + Bar

2332 K Street

Der Biergarten

Canon

1719 34th Street

1201 K Street, #100

Brasserie Capitale

Scan each QR code with your phone’s camera to be linked to that restaurant’s website!

Alaro Craft Brewery

1217 18th Street

58 Degrees & Holding Co.

2004 Capitol Ave

T HE

2502 J Street

Drunken Noodle Midtown

2730 J Street

Centro Cocina Mexicana

1820 L Street

Broderick Roadhouse

Allora

5215 Folsom Blvd

1131 K Street

Ella Dining Room & Bar

805 15th Street

Chando’s Cantina

Burger Patch

2301 K Street, Ste 101

Barwest

2724 J Street

Localis

Maydoon Restaurant

Nash & Proper

Jungle Bird

La Cosecha by Mayahuel

Masullo Pizza

Mulvaney’s B&L

Kupros Craft House

Paesano’s

Selland’s Market Cafe

Revolution Wines 2831 J Street

915 Broadway

1806 Capitol Ave

O-Toro Sushi & Shabu 2131 J Street

1215 19th Street

2711 Riverside

917 9th Street

2516 J Street

1530 J Street, Ste 150

Mikuni Sushi

1800 15th Street, Ste D

Mas Taco Bar

1217 21st Street

427 Broadway

1409 R Street

Shady Lady

Paragary’s

1401 28th Street

1023 K Street

1501 16th Street, Ste 111

2031 S Street

Kasbah

2115 J Street

1630 S Street

Hook & Ladder

Jamie’s Broadway Grille

1525 Alhambra Blvd

Hawks Provisions & Public House

926 J Street

1805 Capitol Ave

Fieldwork Brewing Company

Grange Restaurant & Bar

2009 Matsui Alley

Federalist Public House

1901 16th Street

Ernesto’s Mexican Food

1201 R Street

Shoki Ramen House

1122 16th Street

Petra Greek

3145 Folsom Blvd

OBO’ Italian Table & Bar

1717 19th Street

Midtown Spirits

1601 16th Street

Magpie Cafe

10505 20th Street, Ste 180

Kin Thai Street Eatery

555 Capitol Mall

House Kitchen & Bar

1104 R Street, Ste 100

Fish Face Poke Bar

1813 Capitol Ave

Sibling by Pushkin’s

2322 K Street

Pizzasaurus Rex

1015 9th Street

Odd Cookie Bakery Cafe & Bar

2801 P Street

Midtown Sushi

1704 15th Street

Majka Pizzeria & Bakery

718 K Street

Kodaiko Ramen & Bar

2730 N Street

INK Eats and Drinks

1001 R Street

Fox & Goose Public House

1415 16th Street

Simon’s Bar & Cafe

1132 16th Street

Public House Downtown

1609 16th Street

Orchid Thai Restaurant & Bar

2320 Jazz Alley

Midtown’s Cantina Alley

1930 K Street

Mango’s Burger Bar

732 K Street

Koja Kitchen

1800 15th Street

Iron Horse Tavern

806 L Street

Frank Fat’s

The Porch

Uncle Vito’s Slice of NY

The Melting Pot

Tropics Ale House 2001 J Street

814 15th Street

1010 10th Street

1501 16th Street & 1800 15th Street

1815 K Street

1200 K Street

Tequila Museo Mayahuel

Ten Ten Room

1630 K Street

Squeeze Burger

730 K Street

Solomon’s

1322 V Street

Urban Roots Brewery & Smokehouse

2718 J Street

The Red Rabbit Kitchen & Bar

Thai Basil

2431 J Street

1925 J Street

Tank House BBQ & Bar

VEG Cafe & Bar

2431 J Street, 2nd floor

The Rind

1801 L Street, #40

1112 2nd Street

The Firehouse Restaurant

2115 J Street

Tapa the World

1115 21st Street

World Famous HOTBOYS

2000 Capitol Ave

The Waterboy

2315 K Street

The Flamingo House

2700 Capitol Ave

Tea Bar & Fusion Cafe

1415 21st Street

Zelda’s Original Gourmet Pizza

Tiger

722 K Street

2326 K Street

The Golden Bear

1614 21st Street

Tea Cup House

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1

P fft, look at t h o s e l azy c yc l is t s w it h t h eir c u s h y s e at s an d f o rc e - mu l t ipl yin g ge ars !

THE SAC GRID IS AN

URBAN RUNNER’S DREAM KONRAD KNUTSEN - SENIOR DIRECTOR

W

What is it about running around the city that people like so much?

Is it that the thick tree canopy cools the streets to a more tolerable temperature? Is it that the street network is neatly laid out, favorable to pedestrians, and relatively flat? Or is it because running past cars of onlookers and our unfit neighbors provides an indescribable sense of superiority? In our office, it’s all of the above! For your enjoyment, I’ve detailed some of my favorite running loops in the Grid below.

I’ll say it. Sacramento’s urban core provides some of the best running paths in the country.

First, there’s the nature trail network.

Reaching all the way from Folsom Lake to the Grid are 30 miles of unobstructed trail and bikeway with countless interconnected paths of bridal and single-track trails along the American River.

Then, in the Grid itself, running is surprisingly scenic. Huge century-old trees keep the sun off the sidewalks and parks seem to be designed with runners in mind. With the way the blocks are designed, it’s incredibly easy to avoid cars while running around town.

People know it, too. International marathoners come to the City every year to test their endurance over the point-topoint California International Marathon. In fall, tens of thousands come to Sac and make room for Thanksgiving feast by taking part in Run To Feed the Hungry.

If the caffeine has worn off and you’re looking to catch your second wind of the day, step out of your office and try getting in a quick mile or two or six. It may sound mad to some, but if you do it regularly, you’ll not only feel great you’ll see yet another reason why everyone’s falling in love with Sacramento.

Top: Our very own Konrad Knutsen training for his next spring road race. Did we mention he qualified for the Olympic Trials? Bottom: Fleet Feet on J St. Founded by Sacramentans Sally Edwards & Elizabeth Jansen in 1976!

MCKINLEY PA R K T R AC K

CAPITOL TROT

SUTTER’S CIRCUIT

MIDTOWN MEANDER

B O U L E VA R D JOG

1.05 Miles

1.05 Miles

0.40 Miles

2.05 Miles

1.55 Miles

Shade qualit

9.5 / 10

8.75 / 10

8.75 / 10

7 / 10

9.5 / 10

Surface type

Decomposed granite

Concrete

Decomposed granite

Concrete

Concrete

You should anticipate

Lots of other people on the trail and the occasional stray frisbee bonking your head.

Envious looks from bored government staffers in nearby buildings.

Geese that are actually pretty easygoing and intermittent canon blasts from the fort (really).

Being free to run in the road! With “Slow & Active Streets,” this is basically a pedestrian mall.

Allergies from the trees and a general feeling of annoyance that you don’t live here.

Path

Map

Loop length y

1401 21ST STREET SCAN FOR BROCHURE

6,308 SF OFFICE FOR LEASE $2.35/SF FULL SERVICE

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3

WHAT WORKERS WANT SACRAMENTO OFFICE

THE OFFICE IS A SOCIAL SPACE

Percentage of respondents

We asked people if working in an office is important for building their social capital. Sure seems like it!

40%

n=1,040

30% 20% 10% 0%

Not

Somewhat

Very

BROOKE BUTLER - VP - OPERATIONS & MARKETING

THE OFFICE INCREASES PRODUCTIVITY

I

Convenience Sampling methods were used in data collection. Results have potential to be biased.

Sort of

Yes

68%

22% 10%

Opinions are all over the place and companies worldwide are trying to gauge where their employees are at.

So, to save you the hassle, we surveyed 1,040 Sacramentans who work in offices to get their thoughts about in-office work moving forward! Yes, that’s a lot of respondents - apparently people have quite a bit of free time, lately. Through the deluge of data, noteworthy trends emerge which can be highly useful for your organization. Read on!

No

n=1,040

THE OFFICE ENABLES HARDER WORK Here, we asked if they worked harder when in an office vs at home. These graphs are all looking the same...

Percentage of respondents

It’s a strange landscape in the world of office labor right now. No two workers have the same situation.

Some people are traveling the coast in Sprinter vans claiming it’s the end of in-person work while others are taking sales calls in the bathroom to escape their fighting kids. Some people feel like their career would be stunted if they didn’t have spontaneous office chit-chat and others are fine on a laptop at the dining table with the cat on their lap.

Here, we asked if they were more productive when working in an office. Pretty honest for self-reported!

40% 30%

n=1,040

20% 10% 0%

Not

Somewhat

Very

d

m Lon g-t er

Collaborators

Creators

Do things together

Do things first

Controllers

Competitors

Do things right

Do things fast

External

Competitors

Bre ak t hr

Creators

e ev

Flexible

nt me lop

rfo rm anc e

en re m Inc

tal

Pe

As you can imagine, office workers are no monolith. To help better understand the data, we’ve parsed the respondents out based on what type of organization they work for. As it turns out, different company values beget different wants and needs from their workers (big surprise!)

Here’s how we divided them up: There are four main company types outlined in the Competing Values Framework - something you’ll surely recognize if you took any business classes in college.

Think you fall into all four? You don’t. It is called the Competing Values Framework for a reason. Trade offs always exist in organizations and resources - including time and attention - are never unconstrained. The categories demonstrate that everything comes with inherent trade-offs.

So what does each type of worker want in their office space, especially now that working form home is so common?

THE COMPETING-VALUES FRAMEWORK FOR ORGANIZATIONS

gh ou

TREND 1: OPINIONS DIFFER BASED ON COMPANY VALUES

4

Internal

2

rt Sho

r -te

m

Focused

Controllers

Collaborators

Least attracted to working in an office!

Attracted to the office to escape home life!

Feel highly motivated by being in the office!

Absolutely, 100% NEED to work in an office and miss it!

Creativity, innovation, and vision.

Change-oriented. Constantly pushes for new ideas.

Purpose: Innovation & growth Emphasize: Flexibility & adaptability Negatives: Constantly chaotic Note: Thrives in turbulence Examples: Artists, visionaries, entrepreneurs

Competition and achievement. Likes to distinguish between “winners” and “losers.”

Purpose: Profits & market share Emphasize: Speed & results Negatives: Conflicts, neglect Note: Beating the competition is key Examples: Competitors, motivators, deal-makers

Predictability, dependability, and systems. Focuses on careful adherence to process.

Purpose: High quality & optimization Emphasize: Procedure & cost-cutting Negatives: Red tape, stagnation Note: Clear role definitions are a must Examples: Problem-solvers, engineers, professionals, government

Cooperation, collaboration, and community. High regard for shared values and communication.

Purpose: Cohesion & commitment Emphasize: Relationships Negatives: Results under-emphasized Note: Seeks to be employer of choice Examples: Community builders, teachers, counselors, organizers

What they want in their office:

What they want in their office:

What they want in their office:

What they want in their office:

Collaborative Space

Collaborative Space

Collaborative Space

Break Room

Break Room

Break Room

Break Room

Vehicle Parking

Vehicle Parking

Vehicle Parking

Vehicle Parking

Bike Parking

Bike Parking

Bike Parking

Bike Parking

Game Area

Game Area

Game Area

Game Area

Beer / Wine / Cocktails

Beer / Wine / Cocktails

Beer / Wine / Cocktails

Beer / Wine / Cocktails

Collaborative Space

Lounge Area

Lounge Area

Lounge Area

Lounge Area

Nice Interior Design

Nice Interior Design

Nice Interior Design

Nice Interior Design

Private Offices

Private Offices

Private Offices

Private Offices

Downtown or Midtown

Downtown or East Sac

Downtown or Midtown

Downtown or Midtown

Preferred office location

Preferred office location

Preferred office location

Preferred office location

Distinguished by their need for: Being surrounded by other business professionals

Distinguished by their need for: Walkability Close to coffee shops Nature

Distinguished by their need for: On-site parking Access to public transportation Close proximity to eateries

Distinguished by their need for: Bikeability An interesting vibe / aura

RECRUIT RETAIN REACTIVATE OFFICE SPACE FOR LEASE

TURTONCOM.COM

10,000 SF + 730 I ST | 818 K ST | 830 K ST | 1130 K ST | 1300 U ST | 1919 19TH ST | MARRS | 1725 23RD ST | 2801 J ST | 7919 FOLSOM BLVD 5,000 - 10,000 SF 106 K ST | 1030 G ST | 1001 K ST | 1029 J | 1100 11TH ST | 01 LOFTS | 1530 J ST | 1630 I ST | 1819 K ST | 1401 21ST ST | 2831 G ST

2

TREND 2: EACH GENERATION HAS A DISTINCT POSITION ON WORKING-FROM HOME As with opinions on most topics these days, perceptions of the value of working in an office vary strongly by generation.

Working from home undoubtedly offers some attractive amenities, but many still see value in being at the office.

1946

1965

6

POST-PANDEMIC, WHAT YOU PREFER? Respondents were asked which work situation they’d most prefer after the pandemic is over.

...and the same question but if splitting between both WFH and in-office is not an option:

In-office

Combo

Home

25% 52%

51%

49%

23% Home

In-office

n=1,040

1980

Invest in your office space to retain employees!

1996

Present

Boomers

Gen X

Millennials

Most against working in the office full-time!

Most desperate to be at the office to escape home life!

Most eager to return to the office to advance career!

Most averse to working in an office overall!

“I’ve spent my whole working life in offices. I wouldn’t mind working from home. A lot of what I do can be done remotely and I have a nice setup at my house.”

67-year-old man Upper Management

“I really like [working in an office] and look forward to being back around my colleagues. I get so much more done at my desk than I do at home. It’s a good atmosphere.”

47-year-old man Trained professional

“I want to get back to the office in a hurry. I can feel my relationships with coworkers deteriorating. We also hired new staff and training them virtually is a nightmare.”

30-year-old woman Middle Management

“Working from home and a flexible schedule are more important me than having a traditional on-site 9-to-5.

It’s better for projects that require uninterrupted focus and quiet.”

22-year-old woman Support Staff

The youngest Boomer is a cool 57.

Retirement is on the horizon and they have likely worked in an office for a good portion of their career.

Boomers enjoy having a routine involving going to an office. Their relationships with coworkers just aren’t the same when maintained virtually.

However, going back into an office seems unnecessary for their more senior positions within the company.

Only 28% of Boomers said they prefer to work in the office if given the option to work from home. They also are the least likely to look for another job if unable to work from home.

Makes sense, nows not the time to give up that pension.

Aren’t you lucky; you’ve avoided being the subject of internet memes and continuous ridicule in the news cycle. And all you had to trade for it was to be economically steamrolled by the previous generation (very punk-rock)! It feels like this generation is always running from something. Notably, the reasons they’re most interested in going back to work are in order to escape their home life and feel emotionally charged. Nearly 82% of respondents have kids and juggling it all is a lot on anyone’s plate. And, once they’re in the office, they want to further escape into private offices more so than other generations.

For a generation endlessly derided as “lazy” by AM talk radio hosts, Millennials sure are clamoring to get back into the office. Hands down, they are the most attracted to in-office work and find themselves more motivated there. They value the social dynamics of their workspace and claim they would be turned off if their employer moved them to fulltime work-from-home. Maybe they believe being visible to coworkers is important for career advancement?

Or possibly their living situations are significantly less decadent than the office? Is it the well-stocked snack cabinet? Our gut tells us it’s all of the above!

Born after 1996, these youngsters likely don’t fully grasp, or rebel against, some of the constructs that older generations found were important in a career. Being visible in an office isn’t important to them; they claim to work just as hard from home and don’t want to be judged based on their physical presence in an office. Nothing about an office space really gets them excited. Quizzically, they’d prefer to work in Elk Grove, Natomas, and West Sacramento. Hmm. Sounds like many still live with their parents in the suburbs and don’t want to commute too far.

Remember, the oldest Gen Z-er is only 24.

Least likely to claim:

Most likely to claim:

Most likely to claim:

Least likely to claim:

“I like working in an office because it make me feel that I am a successful person” “The office helps me improve my social skills” “The office helps me expand my social network”

“The office is preferable because it allows me to disconnect from members of my household” “Office banter is important for continuously learning my job”

Gen Z

“I work harder when I am-in person in an office”

“I work harder when I am in-person in an office”

“In-office work experiences are important to me”

“in-office work experiences are important to me”

“I am motivated to do brainstorming when surrounded by my coworkers”

“I am motivated to do brainstorming when surrounded by my coworkers”

64%

of managers prefer virtual meetings over in-person ones!

TREND 3: THE HIGHER THEIR RANK, THE LESS THEY WANT TO BE IN THE OFFICE With over 1,000 respondents, the trend became very clear: the more senior their positions within the company, the more they wanted to work from home. In reciprocal fashion, the lower-ranked workers suggested that being in the office was necessary to their career advancement. It makes sense - the higher-ranking individuals are often in managerial positions that require delegation of tasks more than doing actual work.

They also have “less to prove” to their peers about their work capabilities and ethic. And we can also hypothesize that with a higher rank comes higher pay, meaning that their workfrom-home situations are likely more comfortable than those of their junior counterparts.

SENIOR POSITION-HOLDERS COMPANY ARE FINE AT HOME Your boss want to be there even less than you do!

38.9% Owner

!

39.0% Partner 44.4% Upper Management 46.4% Middle Management 50.0% Intern 53.0% Admin / Support Staff 53.3% Consultant 54.1% Sales Person 56.7% Junior Management 58.2% Trained Professional

60%

50%

40%

30%

Percentage of respondents interested in returning to the office

n=1,040

Key take-aways: There is clearly no “one-size-fits-all-approach” to your office strategy moving forward out of the pandemic. There are varying opinions based on company culture, generational differences and

job function. However, there are some underlying trends that can and should not be ignored. People are more motivated and proactive in an office space.

People brainstorm, collaborate and

learn in an office space. The right kind of space can recruit new employees, retain the ones you have, and increase their productivity. Use your office space as a tool to generate revenue!

2

8

Extensively debated over prior to writing!

COMMERCIAL LANDLORD

PRO-TIPS JON LANG - VICE PRESIDENT

A compact collection of creative techniques, helpful reminders, and general good advice for the parsimonious commercial property owner!

T The last eighteen months haven’t been easy, and it’s been no exception for commercial landlords. Between shelterin-place mandates, eviction moratoriums, the viability of remote working, and of course widespread financial instability, it seems like property owners are always left holding the bag. Normalcy is returning, as is evident by the presence of the Brew Bike on the streets again, but some owners may still be seeking ways to increase their profits.

Here are some frequentlyoverlooked techniques that savvy landlords use!

Top: When building the Eleanor Apartments, SKK saw the value of adding a mural and literally wrapped the whole building in one. Below: Matt & Scott discussing ways to attract tenants at 830 K Street.

AVERAGE PRICE / SF Source: CoStar (2021)

URBAN CORE OFFICE SPACE IN SAC

$3.00 $2.75 $2.50 $2.25 $2.00

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2022

Consider a “bandaid” lease deal!

Always require a personal guarantee!

Reallocate parking to other uses!

Landlords want cash flow and tenants want flexibility. To lease those stubborn vacancies, consider a short-term, 12 to 18 month “band-aid” lease that generates rent for the building now and simultaneously gives your tenant the autonomy they seek.

Revisit the lease when the market has improved next year to lock in a longer term and increase the rent then.

Where the tenant is a limited liability entity (i.e. LLC or corporation), require a personal guarantee for out-of-pocket damages should the tenant default on the contract. This may seem like overkill, or even unnecessary, given the circumstances or credibility of the tenant; however, unforeseen events happen, and it is crucial to have recourse for rent owned to you. If a tenant refuses to sign a personal guarantee, consider this is a red flag!

With more employees working from home, your on-site parking lot may be at half capacity these days. Look for alternative ways to generate income with your lot, such as leasing the stalls at night and on weekends to neighboring residents or retail businesses. Further, if your property is adjacent to a restaurant, strike a deal to expand their outdoor dining operations into the unused stalls – a true “win-win” for both parties.

Trade concessions for tenant improvements!

In most cases, the landlord will shoulder the tenant improvement costs. However, you can flip the script and offer other concessions (i.e. free rent and lower rent) in exchange for the tenant paying for and coordinating its own tenant improvements. Why’s it a great idea? Because it reduces the landlord’s outof-pocket expense and overall risk while further committing the tenant to the space. It’s harder for a tenant to walk away from a lease with “skin in the game.”

Commission a mural on your building to increase value!

If anything has proven itself across the Grid lately, it’s that people lose their minds over outdoor murals. Not only does it contribute to the urban fabric that makes our city beautiful, it also increases foot traffic and helps justify asking for higher rents down the line. Office users enjoy murals for ambiance while retailers can directly benefit from artistically-interested visitors.

Get smart thermostats!

You're not alone if you've looked at the SMUD bill and thought, “there goes the family vacation!”

Most property owners lose money every year because of power inefficiencies and they're almost always related to HVAC. Smart thermostats which allow you to pre-set high and low temperatures and automatically turn off utilities after business hours. At about $250 each, a new system will pay for itself in a couple months!

NOW WITH QR CODES

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Things landlords do which

PISSAndOFF TENANTS how much it pisses them off!

Enter their suite without warning

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While most landlords are keen on tenant relations, some aren't sociallyaware enough to realize that some of their tendencies can upset tenants.

Below are some examples of landlord actions plotted on an anger spectrum!

Definitely not pleased

Let the HVAC stay broken 48+ hours

Quite upset

Tow one of their client’s cars Leave capital improvements in an unfinished state

NOTES ON DIY REPAIRS IN COMMERCIAL BUILDINGS

"As a property owner, you may become familiar with constantly bleeding money and trying to reduce costs any way you can, including doing building maintenance yourself. As tempting as this is, I assure you (from experience) that it is WAY more time-consuming than you’d anticipate and tenants universally dislike drawn-out building improvements.

Hire a pro and save yourself from weeks of YouTube and the hardware store!”

John Mudgett - Sacramento commercial property owner

Markedly pissed

Moving elsewhere

Check your water bill!

Some landlords will be shocked by how much water restaurants usually use. Check your water bill and see if you’re being charged a flat or metered rate. If you’re being metered (which you most likely are), you’ll want to recoup the cost of that monthly bill somehow.

Establish a baseline of water usage per tenant and charge a defined rate for usage over that threshhold. This way, water usage won’t kill your building’s pro-forma!

Don’t skimp on tenant rep. commissions!

No single person can influence a lease transaction as much as the tenant’s broker. As such, in this market, do not hesitate to pay a market rate commission to the opposing broker to get a deal over the finish line. An extra percentage point towards the commission pales in comparison to releasing costs or the loss of future income if a deal is not consummated.

If you’re an owneruser, charge a mangement fee!

If you have other tenants in your building, you can charge a management fee, manage it yourself, and add it to your building’s operating expenses.

It’s a sweet deal for landlords looking for another small source of income on their building. Just be sure to actually manage the building for your tenants!

Offer free rent!

Landlords should be prepared to offer concessions to attract new tenants or renew their existing tenants. Free rent is an attractive concession when the best alternative is a vacant space generating no income. For a tenant, abated rent is a dollar-for-dollar savings; however, the landlord only shoulders building operating costs during that time.

Charge tenants for RSF vs USF! Sometimes, tenants pay just for their suite, or useable square-footage (USF).

However, savvy landlords charge based on their rentable square-footage (RSF), which includes building common areas.

Hang in there!

Real estate is cyclical.

There are good times and there are not-so-good times. Hang in there and the market will eventually rebound. Moving forward, connect with a good commercial brokerage to help mitigate risk and stabilize your property.

Top: Restaurants inherently use lots of water when compared to other forms of retail (pictured here is Echo & Rig at DOCO). Bottom: Some buildings have huge amounts of usable common areas which can be factored into rents as “usable square feet,” or USF.

TODAY’S MARKET CALLS FOR A

steady hand

WE KNOW THE NUANCES THAT CAN TOPPLE A DEAL LANDLORD, TENANT, BUYER, SELLER REPRESENTATION

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A reasonable question, indeed!

1 Affordable Housing developments require more complex funding Market-rate projects generally draw on two funding sources: equity from an investment partner and debt in the form of a permanent loan from a bank.

In contrast, Affordable Housing projects require developers to identify a “stack” of capital to close the gap between what they can finance with debt and tax credit equity and what it costs to actually build the development.

A typical affordable housing development requires on average four to six different sources of funding. Increasing financial complexity of deals adds significantly to soft costs and, when coupled with long time delays, can affect hard costs as well.

The costs of these delays creates a vicious cycle of costs, driving the need to go find more sources of financing and adds to the complexity, layers, and additional deal partners requiring differing terms. Then developers work with (good, but notoriously slow) public agencies like HUD, USDA and/or HCD in the same transaction. All of these parties require in-house legal counsel and economic processing which, in turn, creates delays and increases costs. If the delays increase costs enough, a new source of funding must be sought. It’s a wasteful cycle of non-productivity.

SO EXPENSIVE TO BUILD? PATRICK STELMACH - SENIOR DIRECTOR

Affordable Housing costs significantly more to construct than standard multifamily projects. Why? How? Let’s do some quick math.

At last count, there are 5,570 unhoused individuals living in Sacramento County, mostly sleeping outdoors and mostly in the City of Sacramento.

The average cost to build one new unit of affordable housing is $480,000.

Roughly speaking, to build housing for every unhoused person in Sacramento, would cost $2.67 billion – that is more than double the entire City’s annual budget.

All three of these figures are staggeringly high and unacceptable. We are left scratching our heads why that

is, and what can be done to lower the costs of solving the homelessness crisis facing Sacramento.

Sacramento has drawn national attention and accolades for recent groundbreaking reforms and funding to place housing for people without homes and to fund development of more affordable housing.

Failure to address the rising costs of building housing, however, will mean more public subsidy dollars are building fewer and fewer affordable units.

It’s like trying to fill in a sinkhole with a hand trowel!

SOME SUPPORTING DATA

BUILDING IT IS EXPENSIVE The cost of affordable housing construction has increased from $411,000 to $480,000 per unit since 2008. That’s no good!

Avg. construction cost / unit

WHY IS AFFORDABLE HOUSING

500K 475K 450K 425K 400K

Source: CA HUD

2008

2014

2020

MARKET-RATE CONSTRUCTION PROJECTS ARE A LOT CHEAPER

~ $250,000 per unit

HARD CONSTRUCTION COSTS HAVE GONE WAY UP RECENTLY

40% increase since 2012

Top: The Warehouse Artist Lofts feature Affordable Housing.

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2 Materials and labor usually cost more for Affordable Housing Because of the orchestra of government agencies financing the project, an Affordable Housing development is often required to meet abnormally particular standards of construction intended to satisfy the policies of those agencies. This could mean higher-end finishes, more elevators, a LEED Certification, or even redesigning the entire layout the of the building. The

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risk-averse nature of public agencies also calls for more durable materials and expensive safety features. Private developers won’t encounter as many pro-forma-killing twists to the project, which explains why so many prefer to focus on market-rate ones.

Additionally, the labor itself costs more! Affordable housing developments are usually required to pay premium “prevailing wages” determined by the California Department of Industrial Relations and are usually based on rates specified in collective bargaining

A rendering of the soon-to-be new building at 17th and S Streets. This Affordable Housing development required eight sources of funding (that’s a lot).

The NIMBY Starter Pack! “public transit brings vagrants”

“only if it’s consistent with neighborhood character” “scarcity is good for my property value” “where will they park?”

3 The Permitting Process is slow – for ANY development Infamously known as the chief source of stress on a development project, navigating the permitting process could be a full industry of its own. You’d think that developers just draw a design, get an approved permit, and build – and that’s how the permitting process is theoretically supposed to work…but it frequently doesn’t.

Standards and timelines are unclear; there’s an arbitrariness to what codes are strictly enforced. The outcomes of building inspections vary wildly based on which inspectors are present that day.

Little coordination exists between City agencies, the State, the County, PG&E, and so on. Additional requirements to meet and hoops to jump through seem to pop up at various stages of the process. Some projects are even subjected to reinterpretation of the municipal codes throughout the permitting process.

Furthermore, community opposition to affordable housing and higher density drags out development, increasing costs even further. NIMBYs make the hard work of solving homelessness even harder.

The Hardin, an Affordable Housing project developed

by CFY, took nearly a decade just to break ground.

“ruins my view”

agreements.

In the Sacramento region, prevailing wage projects are 36.4% more expensive than those without prevailing wage. Anecdotally, I’ve heard of many contractors declining to bid on prevailing wage projects altogether because of the burdensome reporting requirements and additional red tape.

Consequently, this further constricts the labor pool and drives up the cost of building affordable housing.

“be sure to voice your concerns at City Council next week”

“more housing, but only if it’s owner-occupied” “zoning laws have no connection to culture”

I’m heartened to see Sacramento’s leaders prioritize addressing homelessness and bolstering financing for affordable housing. But tackling the extra costs of building affordable housing will not be easy. More reforms are surely needed to achieve our goals.

What if our city streamlined the permitting process by creating a new position tasked exclusively with reviewing and simplifying code requirements? Or even expanded “by-right” designations, which allow projects that conform to existing codes to go forward without lengthy review periods?

This is about more than just helping developers build their projects faster.

The housing crisis is a problem of monumental scale and requires speed and initiative to solve. We all have the same desired end result: to have enough residential units in Sacramento to house everyone who lives here. Let’s do everything we can to make it happen.

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| THE WP: 1.42 AC | 2311 CAPITOL: 0.59 AC | CASCADE: 0.59 AC | 2131 16 : 0.54 AC | 1511 I ST: 0.38 AC | 4339 ARBOGA: 47.00 AC | 401 WATERMAN: 8.79 AC | 1414 DEL PASO: 1.03 AC |

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A f ires i de cha t wi th our ci ty’s new di s tri ct cou n c il membe r!

e i t a K a l e u z n e l Va

80

Natomas Del Paso Heights

160

The River District

West Sac Downtown Midtown

K Katie Valenzuela is the recentlyelected Sacramento City Council member for District 4, representing all of the grid, as far down as the Pocket, and a chunk of Natomas. Formerly occupied by Steve Hansen, Katie won the seat on a platform of progressive approaches to the housing crisis.

She’s a true community activist and Sacramentan living in Midtown who you can chat with on the street.

Meet our new coincilwoman for Sacramento’s Urban Core!

KAT IE ’S CA M PAIGN P LAT F O RM

AARON MARCHAND - VICE PRESIDENT

Increase Accountability to the Community Make city spending more transparent Establish strong police oversight Strengthen community engagement Confront the Housing / Homelessness Crisis Rent stabilization and fair eviction policies Increase our affordable housing stock Lead on Climate Change Reduce emissions Transition to 100% renewable energy Expand and modernize public transportation Invest in our Future Advocate for fiscal responsibility Increase living-wage jobs Invest in our neighborhoods

Left: Katie Valenzuela in Cesar Chavez Park with the Downtown skyline in the background.

Right: Map of District 4.

East Sac

District 4

Land Park

Curtis Park Oak Park

South Land Park

TCRE: Let’s start with a hard ball right out the gate... What’s your favorite Farmers Market?

Katie: I love the Midtown Farmers Market on 20th because I can easily walk there from my home in Boulevard Park. I also love the one under the freeway because it’s been there such a long time and it’s like a grocery store except better. But I would say the most fun I’ve had is at the Downtown Farmers Market at Caesar Chavez Park. Really, it’s just great that you can go to a farmers market somewhere in Midtown or Downtown almost every day of the week and when you’re working in the office it gives you a great place to go for lunch to get fresh organic food and groceries.

How long have you lived in Boulevard Park?

I’ve been in my current apartment in Boulevard Park now for about 4 years. I’ve lived in Midtown for about 10 years in three

or four different locations.

What was your goal, before you sat on the council, for your fouryear term?

One thing for sure is that I wanted people to be heard. That’s the biggest thing. When I began campaigning and listening to people the one resounding thing, I heard from everyone, from conservatives to progressives, was they didn’t feel their voices were being heard. So, the one thing I promised people is that regardless of whether we agreed or not is that I would listen, and their voices would be heard, and they would know where I stood on issues.

Of course, one of the major reasons I ran was because we have a serious affordability crisis in our housing market. There were people on the street just... suffering. And we had the tools, and we had the ability to help them, and we just weren’t. I believe that our prosperity is interconnected, and we will never experience a fully

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robust economy until we take care of the people who need help.

We can’t just let the problem persist and never address it.

home. And then how do we accelerate the exit. How do we create the units that are affordable for people to find a place to live?

And then how do we help them In your earlier years your prisustain it? We need to provide mary driver was environmental support services that help people preservation and global warmre-adapt once they re-enter the ing, correct? housing system. So often these folks come out and get housed for I still am environmentally driven a month or two but didn’t have to a degree. the support I grew up in “We need to focus on what can be they needKern County done to prevent people from be- ed and then surrounded they’re back by some of coming homeless. Eliminating the on the street. the largest circumstances that cause some- I’m all for the oil fields in triage for the one to lose their home.” the country. I short term lived there for many years and I but for the long term we need to still use inhalers as a result of my focus on the entry and exit. exposure there. The bill I’m working on right now is a fracking bill The City of Sacramento will with Senator Scott Weiner. The be receiving an additional conversation is centered on a $121,000,000 in stimulus dollars gradual decline while providing in this next round. In your opineconomic justice for the Kern ion how do you think these stimCounty workforce that is depenulus dollars should be spent? dent on the oil industry.

This may surprise you to hear I know you’re also highly conthis because sometimes people cerned by the housing crisis. stereotype me incorrectly as not What specific changes do you being business friendly, but I think can be made at the City think small business infusion is level to make a difference in a very important priority in this homeless housing? allocation. We have a great entrepreneurial environment here We’ve already accomplished a in Sacramento that has created a lot in the first couple of months wonderful and eclectic group of since I started on the council. Besmall businesses that make our tween allowing the safe camping downtown and midtown comand safe parking sites and fundmunity great. I have heard from ing it and doing the triage center so many of these businesses how approach. I think that all has hapdevastating this pandemic has pened since we came in along been to their business and how with the work we’ve able to do they are barely hanging on. I to establish emergency sites is rethink it the City can provide these ally starting to build momentum businesses with an infusion of and now I’m really starting to cash that helps them re-energize encourage my colleagues to also their businesses then I think identify sites to add to that inthe City needs to find a way to ventory. I’m hoping to have actudo that. Beyond that, of course, al emergency sites for placement I think we need to use the balcompleted and ready to go in the ance of the funds to address the next two months. But I think the crisis. There are so many people long-term thing we need to foimpacted by this crisis and many cus on is the entry and exit into of them are renters and if we the system. The reason why the don’t provide them assistance, problem keeps growing and it they may very well end up homefeels like we are spending more less. And I don’t just mean rental and more money on it without assistance. Services for example. seeing any significant improveSMUD alone has over $63,000,000 ment is because we are not foin arrears owed them by people cusing on why people enter and who cannot afford to pay them how people can exit the state of during this crisis. I plan on sendhomelessness. We need to focus ing out a survey to see where my on what can be done to prevent constituents would like to see people from becoming homeless. the money spent but I would also Eliminating the circumstances think we need to support youth that cause someone to lose their and education programs.

The City is getting $121,000,000 but the County is getting $300,000,000. How well do you think the County collaborates with the City in maximizing how these funds are spent?

Top: Katie and Aaron strolling through Cesar Chavez Plaza in Downtown dicussing the future of Sacramento housing.

I will say that it feels like there is a refresh going on right now that feels good. Part of that refresh is due to the new faces on the council and part of it is due to the crisis we are all going through and the attention and critiquing that took place over the last year. I’ve felt a palpable shift in the energy between the County and the City even since my first month in which it seemed like there was a lot of tension. Now it feels like there are more conversations happening between people who need to talk, and it seems like those conversations are becoming more frequent. One of the things I’m most proud of is my role in in helping to create the People’s Budget which focused more attention on the City’s budget but also the County’s budget. Those advocates are the ones who really sounded the alarm that the County had given the vast majority of their original $150,000,000 stimulus funds to the Sheriff’s Department payroll and gave none of it to small businesses or the homeless or any of the areas the city supported with their funds. Frankly, the County still owes the community a lot from that initial infusion.

Even at the end of the year they were still allocating CARES money to the sheriff and saying they would give it back to the community through the increase in the general fund. It is money that can and should help the community. I think the County Supervisors are beginning to feel a level of pressure they haven’t before thanks in large part to these advocates and the level of conversation and energy towards making this next stimulus infusion do more is exciting. It is perfectly acceptable and expected to hold the City accountable for how these stimulus funds are spent, but when you have a county with three times our budget and allocation, they should be engaged in that conversation too.

Midtown still feels predominantly clean and safe. What do you think can be done to assist downtown businesses and properties, especially in the K Street

Entertainment Zone area of Downtown, feel cleaner and safer in light of the current homeless crisis?

Part of the difference you see and feel is that Midtown is still quite activated. There are more residents who live here, meaning there are more businesses open and people out and about.

The downtown area has fewer residents who live there, fewer businesses open including the large entertainment venues.

Frankly, there are less people Downtown these days, so folks who are unhoused are much more visible, which makes some people feel less safe. The future of Downtown – and really the rest of our city – is linked to addressing the homelessness crisis.

We need real solutions that will give people a place to go and get the help that they need. Downtown has one of the only dropin triage centers available, but there has to be a more holistic approach that is shared by each of the districts. People experiencing homelessness are all over the City and County, and need to be able to access services where they are at. There is no possible way District 4 can provide all of the housing necessary to solve the problem. We need to work together through the Citywide Master Plan process to ensure the solutions are real and at scale to tackle this problem.

Protests may be a common occurence in the urban core. What steps has the City of Sacramento taken to ensure the damage to property and businesses is significantly less than last time?

I think the vandalism happened at the same time as the protests but the people doing the vandalism weren’t always the same people who were protesting. On several videos you saw protestors trying to stop folks from breaking windows, trying to chase them away. At one point I saw a video with protestors forming a human shield to prevent the people from breaking the windows and damaging the property because that isn’t where they were about.

I think a lot of what we learned was the police response, and this is an ongoing conversation, was focused in the protest areas and so we would see videos of folks breaking glass in the same area as

the protesters, but there was also months later. What are we doing a lot of vandalism taking place to mitigate the damage that may in other parts of the city where be caused by the ‘out-of-towners’ there was no protesting occurwho are intending to use the triring. The police were primarily al to do more damage? located around protesters that weren’t doing anything wrong.

There are a lot of things we can In some cases, I heard stories do to deescalate the tension to from business owners who witreduce the likelihood that the nessed Police literally drive right events from this summer happen by a restaurant being broken into again. We need to have a converbecause they were so focused on sation here locally about what’s getting to the protest. And the happened, and how we move fortension protesting is then exacward in a way that addresses the erbated by the police reaction beconcerns of folks who are going cause the protest is about police to the street in frustration and to response in the first place. Much call for change. Another is that of the violence assowe need to address ciated with protests “The future of Downtown – and how Police respond diminished over the protests. This sumreally the rest of our city – is to summer as the police mer Police respondtook a more ‘hands- linked to addressing the home- ed with tear gas and off’ approach to the lessness crisis.” rubber bullets escaprotesting. Honestlating the situation. ly, a lot of what I’m trying to do You aren’t going to de-escalate a right now is get the conversation fight by using force. I hope we’ve going with protest groups so we learned how to respond when it can reduce the pressure on the happens again, but those conversituation so we can avoid potensations are active at the Police tial conflict.

Commission right now.

The conversations will go a long way to mitigate the potential anger between the protesters and the police, but we still have 20% of ground floor retail businesses downtown boarded up 8

Well, thank you for taking the time to chat with us, Katie. We look forward to working with you!

(Laughs) Thank you!

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