Tom Bacon at BCRE

If the State of Ca actually reduces its office footprint in Sacramento, will the private sector pick up the slack? How about a Pizza place? http://ow.ly/OAMS50CsaIi

The 2nd margarita was sooooo tasty. Recently Bacon CRE took part in a Rotary Fundraiser for the Crisis Nursery. While the event is over, the fundraising is still open. To raise funds, I completed a "Triathlon" - 60 mile Bike, 1.5 Mile Swim and 18 holes of golf. Confession: there was some dog paddle. For more information about The Crisis Nursery or to donate, please check out this link: http://ow.ly/XKW750BUoTH Peace, and may the Force be with you!

Many banks I have been talking with loan portfolios in Sacramento don’t seem to be as stressed....yet. Bay Area migration, Sacramento’s diversified economy and a significant government component provides some resiliance - BUT - time will tell. https://www.wsj.com//commercial-property-foreclosures-are-

5B46. CRE morning Musing. What are you going to do? https://www.loom.com/share/b94d3016af174db893d34b1e992abfff

The role of Data Centers continue to grow - projected to grow 8% in 2020. Sacramento is home to one of the largest data centers - Raging Wire has about 680K S.F. in North Natomas. http://ow.ly/DtdF30r7ctL

Midtown Sacramento has many buildings like this conversion in Berlin. http://ow.ly/7UpZ30r7ctK

Seems pretty straight forward to me, but then again I am not an attorney. This article provides a pretty good explanation of Force Majure. http://ow.ly/vm8730r7ctJ

AB 3088 provides more relief to Tenants impacted by Covid 19, but it also provides Mom and Pop Landlords some protections as well. http://ow.ly/jr0E30r7ctM

Why wouldn’t a pandemic be considered an Act of God? It certainly seems indisputable, but some insurance companies may not agree. http://ow.ly/K5TW30r7ctI

No matter how you slice it, the office market is going to soften significantly. We will probably start to see the effects of the softening the 4th Qtr of 2020, and I think that it will continue for at least 12 months. Then some companies will go back to traditional office while other will continue with the WFH hybrid model. http://ow.ly/IinR30r1RhS

Company in Rancho Cordova - all employees going home to telework. Over 40,000 S.F to be vacated. Fortunately for the building owner, this tenant renewed their lease in January 2019 (according to CoStar.) http://ow.ly/e91Y30r1RhR

What a difference three months makes. Sacramento’s Commercial RE market staggers, Deals stall but the fundamentals are there. https://bit.ly/323LxL0

Summer of 2020 lunch break.