After being stagnant for quite a long time, the commercial real estate market in Sacramento, California is starting to revive. Neil Kozokoff is excited to hear this news and what it could mean for the economy of the state’s capital.
The real estate market of Sacramento, California has been in a depression for quite a while. There are signs of life that are beginning to surface as the residential real estate market had been on its way up, and now the commercial real estate market is coming back as well.
The rise in market can be attributed to factories and businesses starting to occupy places that are now very affordable for business. Storeowners can start to have their shops in the city because the rent is affordable, while manufacturing can also conduct business with rent and space being available in many places right now. As the executive of a commercial real estate company, Neil Kozokoff knows that this trend is good for the economy because eventually the rent and value of these cheaper properties will rise once more in the future.
According to Neil Kozokoff, some of the businesses that have started to occupy former vacancies include Whole Foods and their direct competitor, Fresh Markets, which are filling the spaces left by Borders Bookstores when they folded in 2011. A craft brewery has begun to look into expanding their brewpub after having a successful first year. They are currently in a garage in the city’s industrial area and are looking to find a more appropriate environment for their taproom and brewing.
Experts in the area vary on their opinion of how long the honeymoon will last before the values start to rise. It is all being attributed to the natural cycle of businesses coming and going when they aren’t able to attract the right kind of clientele to net a profit or survive. The rise in property value will help the city however, as any boost in industry can help Sacramento get back on its feet and be the leading city of California that it is. The outlook across the board for Sacramento is that all fields of industry should see a boom in the coming year.
Neil Kozokoff is the president of a property development and investment company known as Parkland Companies. He is also principal in Pensam Capital, a Miami based syndicator of apartment properties throughout the United States.