South Sacramento’s Southgate Plaza is once again the subject of serious interest in commercial real estate circles. First, it was the unfortunate departure of Walmart in 2009, which resulted in the closing of its 135,000 square foot retail store on the southeast corner of Florin Road and Franklin Blvd. The approximate 300,000 square foot commercial shopping center was decimated as remaining tenants gradually moved out due to lack of foot traffic. Following a foreclosure on the property just one year later, the new operator and Sacramento commercial real estate brokers have been desperately trying to attract new tenants (see related article for progress update). Unfortunately, Walmart still controls the lease and is now doing its best to block a subsequent retailer from taking over its space for competitive reasons. County of Sacramento officials are furious and pressuring Walmart to reconsider its position for the good of the community. Brian Jacks of East West Commercial Real Estate’s Sacramento office was quoted by Kelly Johnson in an article, published in the Sacramento Business Journal. In addition, News 10 ran this story about the subject.
Empty restaurant buildings continue to sit idle throughout much of the greater Sacramento area. Not so for the old Jolly Burger located at 7150 Auburn Blvd (historic Route 40) in Citrus Heights. Under a new operator, the local burger stand will re-open with the same name on Saturday, November 10, 2012.
Jack and Sue Darting were the original proprietors of Jolly Burger for many years and worked hard to create a memorable dining experience. In addition to friendly staff, customers were always greeted by a three dimensional cheesy hamburger affixed atop the building… one of Jack’s personal creations. The Dartings offered good old fashioned quality food including burgers, sandwiches, frosties, sundaes and shakes. Their food was always a hit with the locals and especially students from Sylvan Elementary and Middle School, right across the street. One can still find amazing consumer reviews on various websites like Yelp, Urban Spoon and Insider Pages.
The last few years of economic distress has clearly taken its toll on the Sacramento commercial real estate market. One prime example involves the 2009 closing of a 130,000 square foot Wal-Mart facility in Southgate Plaza, located on the southeast corner of Florin Road & Franklin Blvd in South Sacramento.
As the main anchor for this 300,000 square foot community center, Wal-Mart’s departure ultimately created a mass exodus of tenants who had successfully lived off its draw of local shoppers for many years. Holes began to appear with “FOR LEASE” signs being posted by a property manager anxious to re-lease the empty spaces.
Click here for related story by Sandy Nax of the Sacramento Business Journal.
Brian Jacks, Regional Vice President of East West Commercial Real Estate, was recently quoted in the Sacramento Business Journal for helping Sacramento retail franchisees achieve better commercial lease rates in this tenant’s market. Click Here to read article.
Despite declining retail vacancy rates, it’s still a tenant’s market throughout the Sacramento Commercial Real Estate landscape. The overall Sacramento retail vacancy rate dropped slightly to 9.8% during the 2nd Quarter of 2012, according to Voit Real Estate Services, who was recently quoted by the Sacramento Bee. This represents the second quarter in a row that commercial retail vacancy ended below 10%. According to the same source, commercial real estate vacancies within the Sacramento submarket of Carmichael reflect a much higher level of 11.3%. This phenomenon of higher retail vacancy rates often creates dramatic opportunities for businesses to sign commercial real estate lease transactions that are quite favorable to tenants.
Regional Vice President, Brian Jacks, of East West Commercial Real Estate was interviewed in by Sacramento Business Journal’s staff writer, Mark Anderson, in his exclusive article, “Galleria refinance hints at easing market.” Anderson writes, “The recent $275 million refinancing of the Westfield Galleria at Roseville not only demonstrates the mall’s economic strength — it also is a sign, some say, that the capital markets are finally beginning to free up.” Click Here to Read More.