We Get Support From:
Become a Supporter 
 We Get Support From:
Become a Supporter 

Optimistic Forecast For Sacramento Small Businesses

Matt Masera Chef at Mother

Mother Restaurant opened near 10th and K on Monday. A new tavern is likely to open directly below the restaurant later this year.

Matt Masera Chef at Mother

The forecast in the annual "Sacramento Business Review" is for two percent economic growth in the region.  The review forecasts a five-to-seven percent increase in housing prices and higher occupancy rates for retail and industrial spaces.

The report co-author, Jason Bell, says it appears lending activity is increasing after years of stagnation, but prospective borrowers are moving cautiously.

"The demand for credit -people wanting to go out and borrow- hasn't been very high," says Bell. "It hasn't corresponded with the low interest rates.  We're wondering if it's a paradigm shift where people are so impacted by what happened in 2008, they're reluctant to lever up their balance sheets, go out and spend again."

One business that is expanding into downtown Sacramento is the Dailey Method - a studio combining yoga, pilates, and ballet.  Owner Sandra Lemos says the City's efforts to encourage small business creation have shown results.

"I'd say the permit process has been easier for us than in other locations that we've opened up in,” she says.”The City's been great to work with in that regard and just having the support of the local business and people just eager to see a small business open up and succeed just with word of mouth  other different organizations."

0121 sacbiz dailey method  The Dailey Method entered a contest for small business sponsored by the Sacramento Downtown Partnership. The $100,000 it won is being used to cover start up costs. 

Lemos says she plans to open the doors to the new studio on J Street February 8.   

Robert Emerick plans to open Empress Tavern in the basement of the Crest Theater on K Street later this year. In one indication of better credit climates, he says he was able to finance the tavern.

"When I purchased the Crest Theater complex, what, about three years ago, banks for the most part were not lending,” he says. “It was very, very difficult to get financing shaped for real estate."

The tavern will likely be the second business Emerick opens this year. He opened Mother Restaurant yesterday.

He says what was supposed to be a "soft opening" for a limited number of diners at the vegetarian restaurant turned into a full house.

The report notes a worrisome trend continues in the high number of seasonal, unpaid, or self-employed workers.

Forecasters say the regional economy will likely be strengthened by increased domestic oil production and a weakening Chinese economy.

 

Sacramento Business Review 2014 Report

 

Related Stories

  • Dave Dugdale / Flickr

    Great Gratuity: A Brief History Of Tipping In America

    Wednesday, August 12, 2015

    Sacramento eatery Magpie Cafe has introduced an extra line on its receipts so customers can tip the kitchen as well as wait staff. It got us thinking: When and where did the practice begin and how did it spread?

  • Group Pushing For Higher Sacramento Minimum Wage

    Wednesday, July 15, 2015

    A bill to hike California's hourly minimum wage may have stalled in the legislature after Gov. Jerry Brown's finance department announced its opposition earlier this month. But a local effort to raise the wage from $9 to $15 is still alive.

Bob Moffitt

Sacramento Region Reporter

Bob is the Sacramento Region Reporter. He has been at the forefront of the coverage of the Sacramento Kings' saga and the effort to build a new arena in Sacramento. He also covers education, business, environment, and sports stories.   Read Full Bio