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1. Office Market Update
Commercial Real Estate
Rocco Curci
LEASING | SALES | INVESTMENTS
BRE #01969013
916.677.8132
rocco.curci@tricommercial.com
Downtown • Midtown • Natomas • Roseville/Rocklin • Folsom • Hwy 50 Corridor

2. National Office Market
Quarter One 2017
1
9.7%
Vacancy
Suburban YTD
Net Absorption
12.0M SF
CBD YTD Net
Absorption
(1.3M) SF
Suburban
Rent
$1.90
$0.01 Increase from Q4
Price Per SF Cap Rate
< 50K SF
50K - 249K SF
$197.87 7.38%
$212.46 6.99%
250K - 499K SF $287.79 5.30%
> 500K SF $372.84 4.27%
Sale Analysis By Building Size
CBD: Central Business District - “Downtown”
Flat Since Q4
CBD
Rent
$2.66
$0.02 Increase from Q4
CoStar Group, Inc. (n.d.). The CoStar Office Report: Q1 2017 - National Office Market.
Rent: Quoted as Full Service asking Lease rates per SF per Month

3. Milwaukee +1
Minneapolis +1
Oklahoma City +1
Philadelphia +1
Dallas
Denver
Kansas City
Miami
New York
Phoenix
Portland
Richmond
Seattle -1
Market Cycle By Property Type
*Quarter Four 2016
1 1
11
16
15
14
12
13
10
9
6
7
8
5
4
3
2
Long Term Occupancy Average
Demand & Supply Equilibrium
Office - Suburban
Health Facility
Office - Downtown
Industrial - R&D Flex
Retail - Power Center
Retail - Factory Outlet
Apartment
Industrial - Warehouse
Retail - 1st Tier Regional Mall
Retail - Neighborhood / Community
Hotel - Full Service
Hotel - Ltd Service
Cost Feasible New
Construction Rents
Mueller, Glenn R., Ph.D. “Cycle Monitor - Real Estate Market Cycles: Fourth Quarter 2016
Analysis.” Dividend Capital Research (2016): n. pag. Web.
Please inquire if you would like to obtain the full Cycle monitor Report from the source
1 1
16
15
14
12
13
10
9
6
7
8
5
4
3
2
Long Term Occupancy Average
N. New Jersey
Chicago
Stamford
Washington DC
Hartford
+1 Baltimore
+1 Boston
+1 Cincinnati
+1 Cleveland
+1 Las Vegas
+1 Long Island
+1 San Antonio
+1 St Louis
+2 East Bay
Honolulu
Pittsburgh
Riverside
Sacramento
San Jose
Charlotte +1
Columbus +2
Orange County +1
Orlando +1
Palm Beach +1
Richmond +1
Tampa +1
Austin
Raleigh
Salt Lake City
New Orleans +2
San Diego +1
Houston
San Francisco +2
11
Nashville +1
+1 Atlanta
+1 Detroit
+1 Ft Lauderdale
+1 Indianapolis
+1 Jacksonville
+2 Los Angeles
+2 Memphis
Norfolk +2
Office Market Cycle
*Quarter Four 2016
2

4. VacancyAsking Lease Rates
Net Absorption
Q3 2016
Q2 2016
537,204 SF
260,038 SF
3
Q1 2016 Q2 2016 Q3 2016 Q4 2016
Q4 2016 674,522 SF
Q1 2016 (119,819) SF
Price Per SF Cap Rate
< 50K SF
50K - 249K SF
$145.89 6.51%
$153.14 7.54%
250K - 499K SF $188.96 8.15%
> 500K SF $227.89 6.50%
Sale Analysis By Building Size
CoStar Group, Inc. (n.d.). The CoStar Office Report: Q1 2017 - Sacramento Office Market.
Sacramento Office Market
Quarter One 2017
Q1 2017 [138,629) SF
Q1 2017

5. 4
Sacramento Office Top Sales
Quarter One 2017
CoStar Group, Inc. (n.d.). The CoStar Office Report: Q1 2017 - Sacramento Office Market.
Please inquire if you would like to obtain the full Cycle monitor Report from the source

6. Office Trends by Submarket
10 Years in Arrears
Downtown
Midtown
Natomas
CoStar Group, Inc. (n.d.). Retrieved April 15, 2017, from http://www.costar.com/
Vacancy Asking Lease Rate

7. Office Trends by Submarket
10 Years in Arrears
Roseville
Folsom
Hwy 50
CoStar Group, Inc. (n.d.). Retrieved April 15, 2017, from http://www.costar.com/
Vacancy Asking Lease Rate

8. What’s
HappeningDowntown SubMkt
2016 and Beyond
400 Capitol Mall Sale
November 2016
511K SF Office | $175.5M @ 6.5% Cap
85.7% Leased at Time of Sale
Buyer: Starwood Capital Group
1
1
2
801 K St Sale
January 2016
337K SF Office | $79.2M @ 7.2% Cap
86% Leased at Time of Sale
Buyer: GPT Properties Trust
2
1100-1102 Q St Sale
July 2016
152K SF Office | $29.4M @ 7.6% Cap
87.5% Leased at Time of Sale
Buyer: The Evergreen Company
3
3
520 Capitol Mall Sale
October 2016
82K SF Office | $28.0M @ 5.98% Cap
91.8% Leased at Time of Sale
Buyer: LeFever Mattson
4
4
CA public Utilities Comm Lease
August 2016
29,229 SF
300 Capitol Mall - New Lease
6 7
Dept of Managed Health Lease
January 2017
27,971 SF
980 9th St - New Lease
7
6
Golden One Center
Completion and Opening
September 2016
17,000 - 19,000 Capacity
$558.2M Project Cost
8
Sawyer Hotel & Condos
Nearing Completion
Reached Full Height March 2017
16 Story Mixed Use | Open Summer 17
Dev: Sac Kings & JMA Ventures, LLC
9
10
8
Superior Court of CA Lease
March 20176
28,881 SF
816 6th Street - New Lease
5
5
Railyard Redevelopment
Approval
Construction Targeted to Start 2018
200 Acre Former Railyard
Residential, Retail, & Soccer Stadium
10
9

9. Average Lease Rate
Current average asking full
service gross lease rate for
this submarket.
$2.49
9.2%
19.4K SF
Net Absorption
SF of space that was occupied at
the end of period minus SF
occupied the previous period
Vacancy Rate
Average vacancy rate
across all office
buildings located
within this
Total Rentable Building Area
Square feet of office space
currently constructed within this
submarket
Vacant Square Feet
Square feet of space
vacant and available
for non-sublease
tenancy
1.78M
19.99M
Leasing
CoStar Group, Inc. (n.d.). Retrieved April 11, 2017, from http://www.costar.com/
Number of Transactions
$352M
Transaction Dollar Volume
Average Price
23
$17.6M
Average Price Per BLDG SF
$274.89
6.3%
Average Cap Rate
Sales << Jan 16 through Mar 17
6
Downtown Submarket
Quarter One 2017

10. What’s
HappeningMidtown SubMkt
2016 and Beyond
2901-2929 K St Sale
September 2016
63K SF Off/Retail | $8.0M @ 9.5% Cap
94% Occupied at Time of Sale
Buyer: Rakesh K Dhir
1
1
2
1515 19th St Sale
January 2017
25K SF Office | $3.15M @ $126 SF
67% Leased at Time of Sale
Buyer: Thomas Brown
2
1909 H St Lease
Dec 2016
7,823 SF @ 2.50 NNN Effective
Tenant: WU Inc.
3
5
2401-2407 J St Lease
August 2016
7,138 SF @ $2.83 FS Effective
Tenant: Cook Brown LLP
4
4
1401 21st Lease
October 2016
3,601 SF @ $2.00 NNN Effective
Tenant: Midtown PBID
5
1625 19th St Apartment
& Retail Project Start
Construction Underway
70 Apartment Units
2,000 SF of Retail
6
19J Residential Project
Construction Start
Construction Aimed to Start May 2017
11-Story Residential
19th & J St
7
6
7
3

11. Average Lease Rate
Current average asking full
service gross lease rate for
this submarket.
$2.05
6.2%
1.1K SF
Net Absorption
SF of space that was occupied at
the end of period minus SF
occupied the previous period
Vacancy Rate
Average vacancy rate
across all office
buildings located
within this
Total Rentable Building Area
Square feet of office space
currently constructed within this
submarket
Vacant Square Feet
Square feet of space
vacant and available
for non-sublease
tenancy
310K
4.99M
Leasing
CoStar Group, Inc. (n.d.). Retrieved April 11, 2017, from http://www.costar.com/
Number of Transactions
$30.59M
Transaction Dollar Volume
Average Price
35
$1.8M
Average Price Per BLDG SF
$170.41
6.35%
Average Cap Rate
Sales << Jan 16 through Mar 17
8
MiDtown Submarket
Quarter One 2017

12. What’s
Happening
Natomas Submkt
2016 and Beyond
1
1
2
2480 Natomas Park Sale
December 2016
49K SF Office | $9.0M @ 6.99% Cap
100% Leased at Time of Sale
Buyer: River City Bank
2
3
3
CA Dept of Food & Ag Renewal
August 2016
76,000 SF
2800 Gateway Oaks Dr
5
5
SUtter Health Lease
October 2016
28,615 SF
2890 Gateway Oaks Dr
6
6
Samuel Merritt College Lease
October 2016
Renewed 19,356 SF
Expanded additional 20,405 SF
2710 N Gateway Oaks Dr
7
7
New Proposed 60,000 SF
Office Development
2500 River Plaza Dr
Dev: Perkins, Williams, & Cotterill
Plans Submitted
8
Hilton Garden INn N. Natomas
Construction to Start
Start Slated by Year End 2017
$20M | 124 Room | Pool, Bar, and Gym
Developer: WS Management, Inc.
9
9
8
CA Dept of Human Assist Lease
August 2016
81,255 SF @ $1.39 SF + Util. Effective
New Lease
4450 E Commerce Way
4
4RIver Plaza & South Natomas
Portfolio Sale
February 2017
317K SF Office | $43M @ $135.74 SF
Buyer: TFO USA Limited - Fund Mgr
1
1
Omninet Capital Natomas
Portfolio Purchase
August 2016
523K SF Office | $60.3M @ $115.10 SF
Buyer: Omninet Capital
3
3

13. Average Lease Rate
Current average asking full
service gross lease rate for
this submarket.
$1.78
14.3%
0.4K SF
Net Absorption
SF of space that was occupied at
the end of period minus SF
occupied the previous period
Vacancy Rate
Average vacancy rate
across all office
buildings located
within this
Total Rentable Building Area
Square feet of office space
currently constructed within this
submarket
Vacant Square Feet
Square feet of space
vacant and available
for non-sublease
tenancy
988K
6.92M
Leasing
CoStar Group, Inc. (n.d.). Retrieved April 11, 2017, from http://www.costar.com/
Number of Transactions
$21.44M
Transaction Dollar Volume
Average Price
10
$2.7M
Average Price Per BLDG SF
$122.82
6.99%
Average Cap Rate
Sales << Jan 16 through Mar 17
10
Natomas Submarket
Quarter One 2017

14. Slate Creek Corp Center Sale
December 2016
147K SF Office | $23.2M @ $157.18 SF
3300, 3400, 3500 Douglas
Buyer: Ridge Capital, Inc.
1
1
2
1101 Creekside Ridge Sale
November 2016
86K SF Office | $16.05M @ 9.0% Cap
Investment Purchase - 1031 Exchange
Buyer: Beard Land Improvement Co
2
Lava Ridge Portfolio Sale
October 2016
183K SF Office | $27.6M @ $150.42 SF
3 Bldg: 2990, 3000, & 3010 Lava Ridge
Buyer: Barker Pacific Group
3
3
Olympus Corp Center Sale
January 2017
191K SF Office | $33.9M @ $177 SF
3001, 3005, 3009, 3013 Douglas
Buyer: Barker Pacific Group
4
4
3735 Placer Corporate Lease
February 2017
39,869 SF
Flex / Office Building Built in 2006
Tenant: JLM Energy, Inc.
5
201 Creekside Ridge Lease
October 2016
9,514SF for 7 Year Term
Class B Building Built 2005
Tenant: LSA & Associates
6
6
1011 Sunset SubLease
February 2017
14,128 SF
Sublessor: Esurance
Sublesse: Undisclosed
7
7
Adventist Health HQ
Targeted Completion Summer 2018
233,000 SF Class A Office Project
$100M Project Cost Projection
Approx. 1,000 Employee Campus
8
8
UC Med Center Build to Suit
65,000 SF Build to Suit
Near California Backyard
Louis Pappas Investments
Rumor of Potential Construction Start
9
9
Placer Vineyards Final
Approval secured
5,230 acre project
14,132 homes, 165 acres commercial
6,000 acres of open space preserved
10
10
5
What’s
HappeningRoseville Rocklin
2016 and Beyond

15. Average Lease Rate
Current average asking full
service gross lease rate for
this submarket.
$1.79
9.5%
-5.7K SF
Net Absorption
SF of space that was occupied at
the end of period minus SF
occupied the previous period
Vacancy Rate
Average vacancy rate
across all office
buildings located
within this
Total Rentable Building Area
Square feet of office space
currently constructed within this
submarket
Vacant Square Feet
Square feet of space
vacant and available
for non-sublease
tenancy
1.22M
12.83M
Leasing
CoStar Group, Inc. (n.d.). Retrieved April 11, 2017, from http://www.costar.com/
Number of Transactions
$90.19M
Transaction Dollar Volume
Average Price
49
$2.6M
Average Price Per BLDG SF
$186.18
6.78%
Average Cap Rate
Sales << Jan 16 through Mar 17
14
Roseville & Rocklin Submarket
Quarter One 2017

16. What’s
HappeningFolsom Submarket
2016 and Beyond
© Copyright 2016 - Rocco Curci - TRI Commercial Real Estate Services, Inc. - This map contains information from sources we believe to
be reliable, but we make no representation, warranty, or guaranty of its accuracy. This map is published strictly for the use of Rocco Curci
of TRI Commercial and his clients. Redistribution of this document is strictly prohibited.
90 Blue Ravine Sale
November 2016
51K SF Office | $4.95M @ $96.15 SF
Owner User Purchase - Vacant
Buyer: Inductive Automation
1
1
2
785 Orchard Sale
June 2016
41K SF Office | $4.64M @ 2.6% Cap
67% Leased at Time of Sale
Buyer: Schwager Davis, Inc
2
2330 E Bidwell Sale
June 2016
40K SF Office | $5.20M @ $130.00 SF
80% Leased at Time of Sale
Buyer: Individual Investor
3
3
Kaiser Building Sale
December 2016
121K SF Med | $51.5M @ 5.25% Cap
Lease to Own
Buyer: Kaiser Foundation Health Plan
4
4
1743 Creekside Sale
August 2016
20K SF Office | $4.55M @ $226.53
Owner will Occupy Majority
5
5
Powerschool Lease
January 2016
61,000 SF
Goal of 450 Employees
7
7
VoxPro Lease
January 2016
15,000 SF expanding to 30,000 SF
Goal of 750 employees
8
8
Sutter Urgent Care Lease
Opened December 2016
2575 E Bidwell - 3,700 SF
Sutter Invested $3.5M
9
9
Folsom Ranch Approved
Development
10K + Housing Units, 2.4M SF Retail,
3.6M SF Office & Commercial, 1,000
Acres reserved open space
10
72 Unit Affordable
Housing Project
Application Submitted
Approximately $14.0M Project
Developer: The Pacific Cos
11
11
10
950 Iron Point Lease
March 2017
15,808 SF
Tenant Undisclosed at this Time
6
6

17. Average Lease Rate
Current average asking full
service gross lease rate for
this submarket.
$1.89
8.4%
3.2K SF
Net Absorption
SF of space that was occupied at
the end of period minus SF
occupied the previous period
Vacancy Rate
Average vacancy rate
across all office
buildings located
within this
Total Rentable Building Area
Square feet of office space
currently constructed within this
submarket
Vacant Square Feet
Square feet of space
vacant and available
for non-sublease
tenancy
440K
5.22M
Leasing
CoStar Group, Inc. (n.d.). Retrieved April 11, 2017, from http://www.costar.com/
Number of Transactions
$84.52M
Transaction Dollar Volume
Average Price
18
$4.9M
Average Price Per BLDG SF
$247.12
6.27%
Average Cap Rate
Sales << Jan 16 through Mar 17
16
Folsom Submarket
Quarter One 2017

18. 10391 Peter A MCCuen Sale
March 2017
110K SF Office | $27M @ $243.33 SF
See #5 - Sutter Health Renewed Prior
Buyer: Rich Uncles REIT
1
3100 Zinfandel Sale
December 2016
124K SF Office | $16.3M @ 8.90% CAP
87% occupied at Time of Sale
Buyer: Ethan Conrad
2
2
3075 Prospect Park Sale
March 2017
99K SF Office | $10.5M @ $106.15 SF
61.8% Leased at Time of Sale
Buyer: R. Scott Rasmussen
3
3
Regent’s Park Sale
December 2016
141K SF Office | $8.63M @ 7.31% Cap
High vacancy
Buyer: Dan Caputo Company
4
4
SUtter Health Renewal
March 2017
106,592 SF Exp 2025
10391 Peter A McCuen Blvd
Tenant: Sutter Health
5
5
10811 International Lease
February 2017
55,192 SF Exp 2022
New Lease
Tenant: Undisclosed
6 6
8810 Cal Center Lease
March 2017
21,615 SF
Class B Building Built 1989
Tenant: Gurnick Academy
7
7
Aerojet Relocating or
Eliminating 1,100 Positions
1,100 to 1,400 Positions
Eliminating or Relocating to
Huntsville, Alabama
8
Gold Point Corp Center
Listed For Sale
2 Class A Buildings - 100% Occupied
171K SF Office
Asking $35.5M @ 7.0% Cap
9
9
8
1
What’s
Happening
Hwy 50 Corridor
2016 and Beyond

19. Average Lease Rate
Current average asking full
service gross lease rate for
this submarket.
$1.59
15.2%
-12K SF
Net Absorption
SF of space that was occupied at
the end of period minus SF
occupied the previous period
Vacancy Rate
Average vacancy rate
across all office
buildings located
within this
Total Rentable Building Area
Square feet of office space
currently constructed within this
submarket
Vacant Square Feet
Square feet of space
vacant and available
for non-sublease
tenancy
2.72M
17.95M
Leasing
CoStar Group, Inc. (n.d.). Retrieved April 11, 2017, from http://www.costar.com/
Number of Transactions
$116.9M
Transaction Dollar Volume
Average Price
18
$6.9M
Average Price Per BLDG SF
$140.87
7.65%
Average Cap Rate
Sales << Jan 16 through Mar 17
18
Highway 50 Corridor Submarket
Quarter One 2017

20. Rocco Curci
LEASING | SALES | INVESTMENTS
BRE #01969013
916.677.8132
rocco.curci@tricommercial.com
#CREobsessed
© Copyright 2016 - Rocco Curci, TRI Commercial Real Estate Services, Inc. All Rights Reserved
The Information in this document was obtained from sources we deem reliable; however, no
warranty or representation, expressed or implied, is made as to the accuracy of the information
contained herein.