Downtown Sacramento: Still the Center of Gravity
Downtown Sacramento isn’t the doom-and-gloom story the national headlines keep pushing. With the lowest downtown vacancy rate in California, steady owner-occupier fundamentals, and new investment at smart pricing, the submarket is clearly resetting—not retreating. The value proposition that has always anchored Downtown remains firmly in place, and the next cycle favors the players who see it now.
Batten Down the Hatches: The 2026 Debt Wave Is Coming
A massive surge of commercial real estate debt is coming due in 2026, and higher rates are colliding with softening values. Sacramento owners—especially those with loans maturing between 2025 and 2027—need clarity now. The smart move is to run a simple “refi or sell” analysis before lenders force the
“Ethan, I am your father.” Would you like to buy my building?
Costar states that Downtown’s overall vacancy factor is 8.7%. However, when you only consider Class A buildings over 150,000 SF, the vacancy factor is nearly 21%. This does not include 250,000 SF available at 1515 S Street, one block from The Ice Blocks Development. My money is on the fact that the State of California might take over the space at 1515 K Street. I still believe that Downtown Sacramento “will be back.” It has so many fantastic draws.
Golf and Selling Property
“You know, when I was your age, I’d hit the ball right over that tree.”
With the challenge before him, the young man swings hard, hits the ball, watches it fly into the branches, rattle around, and land with a thud a foot from where it had started.
“Of course,” says the old man, “when I was your age, that tree was only eight feet tall.”
Transforming Sacramento – ULI – Studies and Theories with a Practical Touch
Batter Up! Transforming Sacramento. During a walkthrough of a client’s new office, I noticed two red wires dangling from the entrance to the building. The wire had been connected to a new security camera; I hope they got the heist on video! But even if they caught the perpetrator, the ticket would probably be less […]
Buildings for Nothing, Tenants Still Flee!
The investor can undercut market rents when they buy a building for 25 cents on the dollar. This creates tough sledding for many office building owners. It is particularly perilous because lenders are not lending on office deals.
Landlord to Lender: “It’s Just Shrinkage!”
The office market seems like a paradox. Businesses are downsizing, and vacancy rates are soaring, yet rents are slow to go down.
Should I buy or should I lease now?
What is the exit strategy? If for some reason you need to move out of the building, will you hold the asset and lease it out, or will you sell it? Is the property single purpose or will it appeal to a broad base of potential occupants?
You Don’t Have to Bring Your Dog to Work Anymore!
You are probably very familiar with hybrid work. Frankly, most of us start dozing off when we see another article about “The New Normal,” and I was hesitant to write about it. But the changes in Sacramento are worth noting. Recently, I toured an organization that was downsizing from 12,000 SF to 8,000 SF. During […]
Done Deals in Sacramento’s Core 2023
If a deal doesn’t have to happen, it probably won’t. Since early 2023, most development deals haven’t penciled, which has left several projects on hold until construction costs and interest rates go down.