Jim Gray and Nahz Anvary

12 Pages·2016·3.28 MB·English

Jim Gray and
Nahz Anvary
Davis Office & Commercial Real Estate Report
2016 Mid - Year Review
“Keep Calm and Carry On” was a motivational poster
DAVIS OFFICE
produced by the British government in 1939 in preparation
of the Second World War. The poster was intended to
raise the morale of the British public who were threatened
ECONOMIC INDICATORS 2Q - 15 2Q - 16 12 MO
with air strikes, a blockade, and the War. The slogan and
FORECAST
poster has re-appeared recently taking many variations
U.S. UNEMPLOYMENT RATE 5.30% 4.90%
particularly in response to the Brexit Vote. Voters in Great
CA UNEMPLOYMENT RATE 6.10% 5.40% Britain have surprisingly voted to leave the European
Union and that decision has sent shock waves throughout
YOLO COUNTY 6.30% 5.90% England, Europe, and the financial markets. The full and
unintended consequences of the Brexit Vote will have
major implications. Having a stiff upper lip and carrying
on is part of the DNA of the British.
MARKET INDICATORS 2Q - 15 2Q - 16
OVERALL VACANCY 14.10% 11.10% That slogan and poster applies equally and provides
good advice to the business, economic development, and
NET ABSORPTION SF 11,361 -239 campus communities in Davis. Since our last newsletter,
our campus has been shocked with the “administrative
UNDER CONSTRUCTION SF 0 0 leave” and “investigation” imposed on Chancellor Katehi
as well as the resignation of Vice Chancellor and CFO
AVERAGE ASKING RENT $1.85 $1.88
David Lawlor. The situation with the Chancellor continues
to evolve and acting Chancellor and former Provost Ralph
DAVIS BUILDING BASE 1,754,828 1,754,828
Hexter and the faculty, staff, and students are “carrying
TOTAL AVAILABLE SPACE SF 247,422 194,484 on” in a tough situation. They are all preparing for the
arrival of the class of 2016/17 and have their teaching,
research, and public service to attend to.
OFFICE AND FLEX & AVAILABILITIES BY SIZE Also many of us were shocked and saddened when a
majority of voters in Davis voted NO on Measure A and
stopped the annexation of the Nishi site. That 45 acre
14
project located adjacent to UCD and I-80 which proposed
12 student housing and research and development offices
had been years in its planning. Nishi had gone through
10 exhaustive reviews and had been approved unanimously
by the City Council but required a vote of the citizens
8
prior to annexation. The vote was close but it failed.
This was more a surprise than the Brexit Vote! All five
6 12
members of the City Council and all the candidates in
10 10
4 the June council election supported Measure A. There
6 were multiple parties devoted to developing the Nishi
2 4 4 site, including the developers, the City, the University,
and the County, and millions of dollars including regional
0 0
<500 SF 501-1,000 SF 1,001-2,500 SF 2,501-5,000 SF5,001-10,000 SF 10,001-25,000 >25,000 SF transportation dollars were spent on this planning and
SF
election effort. There had been at least five years of
Office and Flex
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 1
2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
meetings about the need for Innovation Parks and there guiding document for the University’s land use and future
was detailed work by planners, engineers and architects growth. We have read the early work on the campus plan
to design the Nishi proposal. The predisposition by and attended workshops and events on the LRDP, and
Davis citizens, as well as a small but active group that find its direction to be very positive for the campus and
are opposed to nearly every effort to make land use the community. We encourage you to explore and learn
changes, have caused a huge setback in Davis’ economic more at the following link http://campustomorrow.ucdavis.edu/.
development efforts. The consequences of this vote both If you would like to read more about our thoughts and
intended and unintended have had major impacts on our ideas on the General Plan update and recommendations
City’s future. to the City Council and the professional planners, click
here: http://www.davisvanguard.org/2016/07/guest-commentary-lets-
There were two other Innovation Centers that were being
embrace-new-general-plan-thoughts-suggestions/
proposed in response to a City initiated Request for
Expressions of Interest (RFEI). The goal of the City was We wish the leaders the wisdom and resolve of Winston
to encourage private developers to propose plans for Churchill as we face up to the need to prepare for 6,000-
R&D and Innovation Parks for long term job creation and 10,000 new students and the related faculty and staff
economic development within the City. Two proposals in and all of the civic, community, and campus amenities
addition to Nishi were far along in the planning stage, one and facilities that are needed. Much of our infrastructure
proposal near Sutter Davis Hospital and the other at Mace needs reinvestment and it will take strong leadership to
Boulevard near the Ikeda Fruit Stand. The developers of prepare a plan, related environmental impact assessment,
both of those projects have “suspended their efforts” and pay for modern improvements to keep our City
to gain approval and aren’t going to invest the millions moving forward and to remain great. Davis voters have
on infrastructure, buildings, and improvements for made it clear they won’t support annexations. Now the
employers and companies. These are additional setbacks question becomes will they will be willing to support an
to our community and to the region. We have consistently alternative that includes infill and densification? A new
reported that there is a lack of sufficient available space plan will likely make Davis more urban, more walkable,
to grow existing businesses or attract new businesses and make our community more vibrant. It is likely that
to the community. These are disappointing events and a denser and infill focused General Plan will lead to an
it would be understandable to be tired, frustrated, and environmentally preferable plan, and surely it will also
cynical because of these local politics but we have to be trigger “Not In My Back Yard” (NIMBY) criticism.
resilient and Keep Calm and Carry On!
We hope that our leaders and planners can support,
adopt and implement plans that will provide for the
current and future needs of our community and campus.
The business community will need to “Keep Calm and
Carry On”. We hope that a new plan is adopted and
implemented and that it will provide future buildings for
innovative and growing companies.
Turning to the Davis commercial real estate market, our
analysis of current market conditions in the Davis office
and industrial market is tracking the broader economy
and the region with slower growth this first half of
the year. Commercial rents in Davis have increased on
average by 5 cents per square foot, and vacancy reported
by our firm’s market researchers based on data base
information to be about 11%. Our analysis and drill down
The City of Davis and the University are both in various
into the data leads us to believe that the actual vacancy
stages of updating their General Plan or in the case of UCD,
rate is closer to 7.75%. For instance, the vacant office
its Long Range Development Plan (LRDP) which is the
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 2
2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
space at the Families First Site is included in the available in decades, but there were signs of easing back on the
space numbers but that property is off the market and throttle in the second quarter of 2016. The single most
a planning process is underway to demolish the office influential contributor to this local economic expansion
and build apartments. Also there are a number of leases has been the rapid rise of the “tech sector” which has
pending on some large spaces that also contribute to the become a rather ubiquitous term covering all businesses
differences in the numbers. that have a significant technology focus or component.
There is wide variety of choices for small businesses but However, recent changes in the tech sector in San
medium size and large growing companies have very Francisco have begun to affect that office market. Slow
limited choices in Davis. Davis currently has 34 buildings or no growth policies have emerged among start-ups
with 45 suites on the market for lease. The total available as well as some more established firms, resulting in a
spaces for lease total a little over ±175,000 square feet. significant increase in new, vacant sublease space. The
There are 26 suites of 2,500 square feet or smaller on the increase in sublease vacancy and several larger blocks
market. (2,500 square feet is enough to accommodate of direct space hitting the market have propelled the
10-15 employees.) In addition, incubator and shared San Francisco overall vacancy rate to 7.3% in the second
workspaces are proliferating and provide opportunities quarter of 2016, up 160 basis points (BPS) from the first
for a number of start-up and small businesses. These quarter of 2016 and the largest quarterly increase since
incubator type spaces, executive suites, and shared the first quarter of 2009.
workspaces include the UC Davis – HM.CLAUSE Life
Science Innovation Center, Area 52 which is also a part The overall San Francisco asking rent continued to climb
of the University’s Distributed Research Incubation closing at a record high of $69.30 per square foot per
and Venture Engine, or DRIVE Network, the UC Davis year on average, compared to $22.56 per square foot per
Engineering Translational Technology Center, Davis Roots year in Davis. That rent is 207% higher than the average
and Pollinate Davis. There are also 80 small executive asking rents in Davis.
suites upstairs in the Farmtown shopping center in
What is puzzling to plenty of economic development,
Stonegate in West Davis. Like many of the smaller and
corporate and real estate interests is the fact that many
older spaces, they are old and tired without a lot of the
corporate and institutional users are not relocating to
amenities that modern businesses are seeking. We expect
the Sacramento Valley. In previous cycles, Bay Area
that there will be additional offerings in the shared work
companies sought lower costs of doing business and
space arena. This concept is a fast growing segment of
lower cost housing for their employees in the Sacramento
the tech office market globally, nationally, in northern
Valley. Many hope that this will occur again, but it appears
California and in Davis.
to many observers that tech companies are expanding
There are only 4 spaces between 5,000 and 10,000 and relocating operations to different communities this
square feet and there are 6 spaces 10,000 square feet or time. Many firms are seeking other business locations
larger (2 of those are sub-leases and 2 more of them are in communities such as Seattle, Portland, Austin, Salt
industrial shells). So there are really only 2 spaces larger Lake and other more urban locations. Apparently, these
than 10,000 square feet directly available for an office communities offer more of what their workforce wants
user; one at Mace Ranch and another at Interland. There and needs. In Sacramento, perhaps as the Downtown
are no offerings of 25,000 square feet or larger. There are Arena and the Railyard come along and add to our
no speculative office buildings under construction in the amenity mix and if Davis or the University ever got a new
City of Davis and we are not aware of any major offerings business park underway, our region would attract more
being planned. interest and investment from tech companies.
Our colleagues in our Bay Area Cushman & Wakefield Davis and the region continue to have a competitive
offices are cautioning that the Bay Area is “entering advantage when it comes to an established hub in
correction territory”. The San Francisco commercial real
estate market has soared along on its longest “up-cycle”
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 3
2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
the Ag Bio Tech industries. These businesses are has stated that one of his goals includes “updating
very global and international in their nature. In the the General Plan”. He graduated from Davis High
past year we have had interactions and provided School, had a longstanding career at the Capitol and
services to agricultural tech firms from Norway, recently took a government-relations position with
Denmark, Israel, China and within the US Ag Tech the University of California Division of Agriculture
firms with roots in Iowa, Missouri, Texas, Silicon and Natural Resources in Davis. Brett Lee, an
Valley, Davis, Woodland and Sacramento. Davis’s engineer by training with significant involvement in
strength in many ways is its agricultural heritage. Davis’ political and community life was re-elected
But it is worth noting that many of the larger Ag with the most votes and has been selected to be
Tech employers, including Bayer, Monsanto and the Mayor Protem and will be mayor in 2 years. He is
Syngenta, have opened or moved their labs to West thoughtful, engaged and principled in his approach.
Sacramento and un-incorporated areas of Yolo The council is rounded out by Rochelle Swanson,
County near Woodland. an attorney and economic development consultant
who has been a passionate advocate in the areas of
economic development and business retention. This
is going to be a great Council!
Their hands will be full and likely the Council
Chambers will be just as full as they grapple with
the future of our fair City. The Innovation Park
and economic development issues and the need
to repackage those efforts as well as the need to
update our outdated General Plan will take great
effort. The current General Plan is full of conflicts
with other zoning documents and in many regards
it lacks needed vision for our current challenges and
CURRENT DAVIS CITY COUNCIL PHOTO BY DAVID M. GREENWALD our citizens’ future needs. Too many times we have
conflicts that arise on a application by application
The Davis City Council election was held with the
basis. Our current General Plan does not identify
June primary and the new council and a new mayor
land resources to accommodate or direct the next
were sworn in at the July 12th meeting. Outgoing
couple of generations of the community’s housing
mayor Dan Wolk is leaving office but surely such a
and commercial needs nor did it envision multi-
talented attorney and devoted public servant will
story infill. This is not fair to our neighborhoods,
find new avenues to continue to serve. Thank you
our businesses, to developers seeking to invest,
Dan! Robb Davis has assumed the mantle of Mayor
or to our City Staff and Commissions. Our current
and we are confident he will help set the right tone.
General Plan was a vision for the community
Robb is a thoughtful and articulate consensus builder
from 1987. Remember 1987? Ronald Reagan was
and problem solver and brings his public health
President, Margaret Thatcher was Prime Minister of
background and other community involvement to
Great Britian, George Deukmejian was Governor of
the Mayor’s job. Will Arnold has been elected to
California, Ted Hullar was named the Chancellor of
serve his first 4 year term on the Council and brings
UCD, the Simpson series started on TV, Dirty Dancing
new energy and a fresh perspective to the council
was the hit movie, and AJ Bumps or Blue Mango
from years of volunteering for a variety of service
were Davis’ dining preferences. The UCD Student
organizations as well as his involvement in state and
Population was 19,835 and tuition and registration
local politics including his job working as a district
fees for undergraduates were $1,296 per year. Our
representative for state Senator Lois Wolk. His work
City Council consisted of Ann Evans, Mike Corbett,
for Lois centered around helping local constituents.
Dave Rosenberg, Jerry Adler and Debbie Nichols
Lucas Frerichs was re-elected. Lucas is a dynamo Poulos. They did their job preparing for the future
and has been deeply engaged with a wide variety of needs of our City by adopting a citizen’s based
community organizations, including having served General Plan. That plan was developed with mix of
on the Davis Food Co-op board of directors. Lucas both citizen participation and
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 4
2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
professional planners combined with a City Council to appreciate the great work that Novozymes is doing
who was committed to adopt a plan. It guided future go visit their web site at http://www.novozymes.com/us and
development and established a process for a tempo see all of the exciting global activities that they are
and phasing of the growth. It was a balanced plan engaged in. Working on such an important and valuable
that provided for community infrastructure that set lease transaction was stimulating and involved a great
aside land for single family and student housing as deal of negotiation and collaboration. We are glad that
well as areas for commercial growth. It protected they have committed long term to Davis and we were
the downtown core, promoted solar energy and set honored to have played a small role in their renewal.
the vision and framework for our future. We believe
that the City of Davis and our current leaders can On a positive note, the Cannery neighborhood is continuing
do a great job again! The current plan served us well to evolve. Houses, parks, the first farm-to-table new-
but its relevancy for today and for our future has home community that grows and provides fresh seasonal
been outlived. produce through its own 7.4-acre working farm is really
taking shape. We hear from our residential real estate
Of course, the Council will have to focus on the colleagues that sales are brisk and the landscape and
budget and a wide variety of public safety and other community amenities are providing great curb appeal.
community concerns. Those issues and many more will We are watching intently as the commercial buildings as
certainly test the new Council. We wish the Council
well as 72 units of apartments try to get launched.
wisdom, resilience, and a collaborative and action-
oriented approach to decisions. Thank you all for your
service!
We wanted to also point out that the largest commercial
property sale in the history of Davis is in process at
University Research Park / Interland. It was developed
and managed for the past 30+ years by Interland and
the Jim Joseph Foundation. This is the premier and
best managed business park in Davis. It consists of
nearly 35 acres, with 17 buildings that include more CANNERY RANCH HOUSE
than 20 tenants who occupy more than 300,000
square feet of office and lab space and includes a
6+ acre site for additional construction. University On the UCD campus, everyone has to be proud of the
Research Park is being brought to market for the first great architecture and the addition to campus of the
time. We understand that more than a ten prospective Jan Shrem and Maria Manetti Shrem Museum of Art
buyers bid for the assets. At the time of this writing, the pictured on the upper left hand corner of page 1. Wow!
buyer has not been selected and the terms of the sale What a great new cultural amenity is being added
have not been finalized. This is a blue-chip property near Mondavi. Take a few minutes and go walk around
that has attracted a wide mix of potential purchasers this stunning architecture. Famous teacher and painter
and the tenancies include the “who’s who” of Davis Wayne Theibaud just donated some of his significant
works to the Museum. It is scheduled to open November
businesses and institutions. Great current income with
a real upside for the investor and the community! 13th. Mark your calendars.
We recently had the opportunity to collaborate with To wrap up our thinking for this newsletter, we feel
our corporate services colleagues in North Carolina such a broad range of emotions to work with such
and Bruce Hohenhaus, one of our broker colleagues in great companies like Novozymes and recognize what
Sacramento, to serve Novozymes who has been in Davis they do for our City, the region and the world, to also
since 1992. Working with local and regional leaders see the sprouting up great new amenities such as the
of Novozymes, we negotiated on their behalf a long Shrem Museum and the community buildings at the
term lease extension to their current lease at Interland, Cannery and then contrast that with the No Vote on
extending their lease commitment for continued R&D Nishi and the withdrawal of the other Innovation Park
efforts and to their local staff and scientists in Davis efforts. We choose to “Keep Calm and Carry On” and
for more than 13 years. Novozymes finds biological hope you do as well.
answers for better lives in a growing world. If you want
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 5
Office Market Report
201S6a cMraImDe n-t o Y VEalAleyR • SReEcVonIdE QWuarter 2016 Jim Gray and Nahz Anvary
Q2 2016 DAVIS OFFICE AND FLEX MARKET STATISTICS
Davis Office & Flex
Quarter Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
Building Base:
Class A 98,000 98,000 98,000 98,000 98,000
Class B 1,023,278 1,023,278 1,023,278 1,023,278 1,023,278
Class C 633,550 633,550 633,550 633,550 633,550
All Types 1,754,828 1,754,828 1,754,828 1,754,828 1,754,828
Direct Availabilities:
Class A 0 0 0 29,793 11,427
Class B 213,606 188,069 173,282 141,110 147,667
Class C 33,816 26,802 22,388 23,342 20,017
All Types 247,422 214,871 195,670 194,245 179,111
Sublease Availabilities:
Class A 0 0 0 0 0
Class B 0 9,371 9,371 0 0
Class C 0 0 0 0 15,373
All Types 0 9,371 9,371 0 15,373
Total Availables
Class A 0 0 0 29,793 11,427
Class B 213,606 197,440 182,653 141,110 147,667
Class C 33,816 26,802 22,388 23,342 35,390
All Types 247,422 224,242 205,041 194,245 194,484
Total Occupancy SF 1,507,406 1,530,586 1,549,787 1,560,583 1,560,344
Growth Rate (%) 0.6% 1.3% 1.1% 0.6% 0.0%
Vacancy:
Class A 0.0% 0.0% 0.0% 30.4% 11.7%
Class B 20.9% 19.3% 17.8% 13.8% 14.4%
Class C 5.3% 4.2% 3.5% 3.7% 5.6%
All Types 14.1% 12.8% 11.7% 11.1% 11.1%
Avg. Asking Rate (FS/Month)
Class A $2.18 $2.18 $2.18 $2.35 $2.35
Class B $1.82 $1.82 $1.84 $1.78 $1.84
Class C $1.88 $1.85 $2.00 $2.04 $1.90
All Types $1.83 $1.83 $1.85 $1.90 $1.88
New Construction:
Class A 0 0 0 0 0
Class B 0 0 0 0 0
Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 19,618 37,714 28,387 51,684 67,120
Net Absorption 11,361 23,180 19,201 10,796 -239
YTD Net Absorption 17,971 41,151 60,352 10,796 10,557
Vacancy & Asking Rate Trend
18% $1.92
16% 14.2% 15.3% 15.1% 14.7% 14.1% $1.90
14% 12.4% 11.9% 12.2% 12.8% 11.7% $1.88
12% 11.1% 11.1% $1.86
10% $1.84
7.6%
8% $1.82
6% $1.80
4% $1.78
2% $1.76
0% $1.74
Q2-13 Q3-13 Q4-13 Q1-14 Q2-14 Q3-14 Q4-14 Q1-15 Q2-15 Q3-15 Q4-15 Q1-16 Q2-16
Vacancy Avg. Asking Rate (FS)
If you would like to discuss market conditions or would like assistance
Based on City of Davis existing office and flex space, 10,000 SF or larger. NNN averawgei tahsk yinogu rer nctso nmotm sheorwcnia.l and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 6
2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
SPOTLIGHT ON DEALS AND HAPPENINGS IN DAVIS
LONG TERM COMMITMENT TO DAVIS AND THE NEW U.S. PRESENCE RIGHT HERE IN DAVIS!
WORLD
Welcome to The Stockton Group headquartered in Israel who
Congratulations to Novozymes who has extended their significant has opened a new U.S. presence at 4627 Fermi Place in Davis.
R&D presence at the University Research Park in Davis for 13 The Stockton Group is a leading crop protection product supplier
more years. Novozymes is headquartered in Denmark and the U.S. offering an extensive product portfolio with almost 100 different
represents the largest market for Novozymes, across fast growing registered active ingredients in different formulations and packaging
and ever changing industries such as biofuels, detergent, food, feed configurations. The Stockton brand is recognized worldwide for
and bioagriculture. Novozymes invests nearly 14 percent of its global high quality crop protection solutions, eco-friendly products and
revenue in research and development annually, with two of its largest outstanding service. Their eco-friendly products and solutions are
research and development facilities located in Davis, CA since 1992 based on innovation, global expertise and partnerships, and are
and Franklinton, NC. Novozymes has had a U.S. presence since 1979 customized to meet local needs. They are committed to earn the right
and employs more than 1300 employees centered around 16 sites to be the preferred supplier to our customers based on high quality
in North America. Novozymes is one of the first companies in the products and top level service.
World to adopt a commitment to a Triple Bottom Line (TBL) aiming
to balance financial, social, and environmental aspects of a business. More at http://www.stockton-ag.com/
This accounting method means expanding the traditional reporting
framework to take into account ecological and social performance in
addition to financial reporting.
More at http://www.novozymes.com/en and see their worldwide
locations at http://www.novozymes.com/en/worldwide
PLANTING NEW ROOTS AND “AGED” TO
PERFECTION
Congratulations to the American Society of Enology and Viticulture
(ASEV) who is moving into roomier office headquarters within the
Green Meadows Office Complex! The American Society for Enology
and Viticulture is a large membership organization who promotes and
encourages the sciences of winemaking and grape growing. ASEV is a
FURTHER EXPANSION 501 (c)(6), tax exempt professional society dedicated to the interests
of enologists, viticulturists, and others in the fields of wine and grape
Best wishes to the team at BioConsortia who has continued to expand research and production throughout the world. Their membership
at the University Research Park to accommodate its growth needs! includes professionals from wineries, vineyards, academic institutions
BioConsortia is developing highly effective microbial consortia for and organizations. Formed in 1950, and originally composed of
increasing agricultural yields and has a pipeline of products for increased researchers from the University of California and California winemakers,
fertilizer utilization, growth improvement and other beneficial crop the ASEV has held a steady growth over the years. They currently
traits. A number of scientists have been recruited and relocated from have 2200 members, 100 Industrial Affiliates (companies), and two
New Zeland to join the local Davis leadership of Marcus Meadows-Smith chapters: an Eastern U.S. Chapter and the ASEV Japan Chapter. And
and Chris Huben. mark your calendar for ASEV’s well-known annual Unified Wine &
Grape Symposium held in Sacramento on January 24 – 26 2017 at the
More at http://bioconsortia.com/ Sacramento Convention Center, the largest event of its kind in the
western hemisphere Built with the joint input of growers, vintners and
allied industry members, the Symposium serves as a clearinghouse
http://www.rmanet.com/ for practical information important to wine and grape industry
professionals, and also hosts a trade show with over 650 suppliers
displaying their products and services to the more than 13,800 people
who attend annually. ASEV bought an entire building comprised of
5 condominium units and will be renovating and updating the entire
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 7
2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
SPOTLIGHT ON DEALS AND HAPPENINGS IN DAVIS (continued)
building of ±5,625 SF square feet for their members and employees. Johnson of Capital Partners Development, Roy Cotterill of Perkins,
Special thanks to Greg Gordon and Robin Ward, Realtors, who we Williams and Cotterill Architects, Harrison Construction, the team
collaborated with in this transaction. at First Northern Bank, and a number of users and consultants from
UCD. This effort has allowed most of the activities of this important
More at http://www.asev.org scientific team to become housed in one new state of the art facility.
One of the groups occupying the space is the Davis Millimeter-Wave
Research Center that conducts research on Microwave/Millimeter
Wave Technology and Plasma Diagnostics.
More at http://engineering.ucdavis.edu
NEW HEADQUARTERS!
Congratulations to US Cryotherapy who has just relocated and
expanded their national corporate headquarters to 1490 Drew
TAKING LUGGAGE TO A WHOLE NEW LEVEL! CAN
Avenue. You can still find their Davis site for services if you have
I CARRY YOUR BAG?
aches and pains or you want to get a “cold boost” at the Oakshade
Shopping Center at 2191 Cowell Blvd in South Davis. What is Congratulations to ALEON who has moved into the 630 Pena Drive
Cryotherapy you ask? Whole Body Cryotherapy (WBC) is exposure in East Davis! ALEON’s fine aluminum travel cases are designed
to subzero temperatures. Extreme cold stimulates skin sensors, with functionality, durability, security and style in mind. Owners
activating a Central Nervous System (CNS) response. This causes the of ALEON cases can be assured of a quality product made for
release of endorphins, the body’s natural pain inhibitors and mood the long haul. All of their cases are molded from aircraft grade
elevators, while the enhanced circulation activity (blood movement aluminum alloy sheets, riveted for strength.
into and out of the core) decreases inflammation by clearing toxins
and metabolic waste with a supply of oxygen and nutrient enriched More at http://www.aleoncase.com
blood to stimulate cellular regeneration (faster healing). Treatments
have been adopted by elite athletes and pro teams for muscle and
injury recovery. WBC is becoming nationally well documented as
being used for the daily management of pain, inflammation, energy,
and stress related conditions. US Cryotherapy is the national leader
as the most complete center model concept for safe, effective, and
affordable treatments available to the public.
More at http://www.uscryotherapy.com/
DAVIS CPA GETS A NEW HOME
Congratulations to Rich Nitzkowski of Nitzkowski Tax and Accounting
Services who recently bought an office condo, a former dental suite,
at the Covell Professional Center at the corner of Anderson and
Covell Boulevard and he is customizing the suite for his CPA offices.
Betty Woo is the project architect and Harrison Construction is doing
the tenant improvements. We hope that Rich’s clients can wrap up
their extensions and complete their tax filings so he can move in to
TRANSFORMATION!
his new office.
The former Z-World/Digi/Rabbit Semiconductor headquarters
More at http://www.richnitzcpa.com/
building at 2900 Spafford has been transformed into laboratory
and office spaces for UC Davis College of Engineering. With an
investment of more than $7 million dollars, a local investment group
and the University have renovated and developed a new laser and
engineering laboratory. We brokered a “renovation-to-suit” and a 12+
year lease. This was truly a team effort with John Buckel and Rod
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
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2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
SPOTLIGHT ON DEALS AND HAPPENINGS IN DAVIS (continued)
DOWNTOWN PROPERTY CHANGES OWNERSHIP SPROUTING UP IN EAST DAVIS
Best wishes to Five Zero Nine LLC, a partnership comprised of Best wishes to Keller Williams Realty who has opened their Davis
two therapists, a psychiatrist and their spouses, who have recently offices at 4632 2nd Street in East Davis in the office buildings
purchased a mixed-use office/ 509 4th Street from Grace Valley across from Target. Again, there are a number of great agents and
Christian Center. This is a mixed use 4-plex that includes three brokers now with Keller Williams. As we know first-hand, there are
residential units and about ±2,160 square feet of office space that is plenty of changes in the real estate business. We ourselves have
envisioned to provide individual practitioners/therapists and other had seven different business cards in the past 10+years.
services providers who need individual offices for rent in a convenient
downtown location. What a great downtown Davis location and More at http://www.kw.com/kw/
building to do business. Special thanks to John Thayer of First
Northern Bank who provided take out financing for this specialized
property. John and the team at FNB provided exceptional service
and great terms and rate.
NEW CENTRAL LOCATION DOWNTOWN
Congratulations to Nate Pina and First Cal Mortgage who have moved
to the second floor of the Smith’s building where First Northern Bank
is the anchor tenant at Second and D Street. Nate and his mortage
company have leased a bright and functional office located in the
heart of Davis’ financial services center, near the majority of the
downtown real estate, title, and insurance, offices.
More at www.firstcal.net/pina
MADSON PLACE OFFICES NEW ADDITION
Congratulations to RE/MAX Gold who has expanded their Davis
presence and has opened a new location at the offices at 334 Madson
Place, near the intersection of Pole Line and 5th Streets. A number of
first rate brokers and agents are moving to this new location. In an
historic coincidence, the building is owned by Sam and Gwen Harrison
who were the first owners of the RE/MAX brand in Davis. This landlord
really understands their tenant’s business.
More at http://www.remaxgold.com/
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
/ 9
2016 MID - YEAR REVIEW Jim Gray and Nahz Anvary
ON THE MARKET - FOR SALE
Here is a sample of the types of properties that are available for sale in Davis, are in escrow or have recently sold. As you can tell, it’s a great
time to be a seller as there is limited supply on the market.
The majority of our brokerage practice is focused on serving landlords, tenants, and owner users. Also, we regularly represent investors
who are looking for investment properties for rental income. Davis as a community has a high barrier to entry, a limited supply and values
are generally stable with not a lot to choose from. We track all property offerings on the market—listed for sale by owners, by other brokers
and by us.
If you are looking for friendly, professional, thoughtful representation in evaluating an offering—either currently on the market or to be
prepared and on the look-out for future opportunities, or are thinking of listing your property, please give us a call. We would love to set up a
meeting to learn about your objectives and criteria and discuss our services, our philosophy and our approach.
W
I N E S C R O S O L D S O L D
FOR SALE
614 CANTRILL DRIVE
509 4TH STREET COMMERCIAL INFILL LOT / DAVIS, CA 95618
2900 SPAFFORD STREET 1724 PICASSO
MIXED - USE / INVESTMENT
R&D BUILDING / INVESTMENT PROPERTY OFFICE CONDOS
PROPERTY
±23,825 SF ±5,625 SF
±4,610 SF N
M
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S O L D S O L D E BLVD
Konditorei
Austrian
Pastry Mori
PR OPERTY PENA D 2ND STRSEeEiTki
R
PO
LE LIN
2043 ANDERSON ROAD 5O0F1F OICAEK B AUVILEDNINUGE E ROAD L6A14N DC AFONRT RSAILLLE
OFFICE CONDO
±4,385 SF ±.64 ACRES
±1,100 SF
$425,000
FOR SALE: $425,000
614 Cantrill Drive is a ±0.64 acre unimproved lot near the I-80 and Mace intersection in East Davis. The current
Owner of the site previousWly planned to build ±3,524 sf auto service building and related parking for its own use on
S O L D S O L D I Ntobhfu e yt hesEorit sece a aSnpn lddane Ctvsh ewolosoRepu lrtdeh nerOedirqe ouriwinregn sac oacrnoecn eatrptattacsct a hanenddd p itnlha etnh sce ot onm smaernektee tot iftn htgeh. ierT ahbroucssheinit epesclastn atshn aadtr eidn evfoveres tlromepfeeenrdet ntnhceeeem dp.su .Or pf ocsoeusr soen, lay.n Tyh feu tuusree
SITE HIGHLIGHTS LOCATION HIGHLIGHTS
• APN: 071-404-028-000 • Visible from Interstate 80 and located off the
intersection of Second Street and Cantrill Drive
• Lot Size: ±0.64 acres (±27,878 SF) (less than 5 minuets from Mace Blvd. exit)
• Zoning: P-D #2-99C, Commercial Service • In close proximity to UC Davis and Downtown
Davis central core area, and a short 15 minute
drive to Downtown Sacramento.
For more information, contact:
Jim Gray, CCIM Nahz Anvary, CCIM 520 Capitol Mall, 5th Floor
Senior Vice President, LEED AP Senior Vice President Sacramento, CA 95814
102 E STREET 114 E STREET +jLiIm1C .9#g10r6a0y 79@745c70u 57s21h4w2a ke.c1om9 70 LAK+nLIa1CE h 9#z1.0a 61n4 2v68a8r45y 5@873c8u5s hwake.com TF:: ++11 991166 337765 81580400
DOWNTOWN PROPERTY DOWNTOWN PROPERTY OWNER USER PROPERTY www.cushwake.com
±2,224 SF ±1,780 SF Cfruosmh wthaek me Carokpeytr oigrh cth 2a0n1g5e. iTnh per iincef±o. rSmelal1etiro (0no rc oLnets,asio2nre, ads h t0ehree cina sw5ea ms alay w bfSeu)l layn odFb btraoinkeedr mfroamke s noou rrecpesr ewsee nctoantsioidne ars r etoli athbele e. nCvuirsohnwmakeen itsa nl coot n rdeistpioonn soifb tlhee a pnrdo epxeprrteys asnlyd d riesccolamimmse anldl lPiaubriclhitays, efor’rs e(rorro Lrse,s osemei’ss)s iionndse,p perniodre snatl iensv, wesittihgdartiaowna.l
If you would like to discuss market conditions or would like assistance
with your commercial and office real estate needs please contact us:
Jim Gray, CCIM/LEED AP Nahz Anvary, CCIM
Senior Vice President Senior Vice President
[phone] [phone]
[email protected] [email protected]
LIC #00775072 LIC #01468557
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