Sacramento Office Market Report
| Average Asking Rent (Price/SF) | $2.05 |
| Availability Rate (%) | 10.1 |
| Net Absorption (SF) | -158,881 |
The Sacramento office market posted a slight increase in vacancy from 9.9% in the second quarter to 10.1% in the third quarter. The last time the office market recorded a quarterly increase in vacancy was in third-quarter 2015 when the vacancy rate increased from 19.2% to 20.4%. The addition of 179,000 square feet of new sublease spaces contributed to the slight increase in vacancy. At the end of the quarter, it was announced that WeWork would not be occupying its lease for 96,000 square feet at 660 J Street, but the space has not been put back on the market yet.
Download Sacramento Office Market Report 3Q20Sacramento Industrial Market Report
| Average NNN Asking Rent (Price/SF) | $0.62 |
| Availability Rate (%) | 3.6 |
| Net Absorption (SF) | -169,019 |
Investors, developers and existing tenants in the Sacramento industrial arena appear poised to take advantage of the strong market. With the vacancy rate at an all-time low, at 3.6%, and the booming construction currently underway with 3.57 million square feet, the Sacramento industrial market is poised to set records by year-end. Even in the midst of the pandemic, the demand for industrial space continues to climb. Even with warehouse rents climbing into the $0.65/SF to $0.70/SF range, tenants continue to look for space. The pandemic has spurred tremendous growth in the grocery industry, with people restricted from going to restaurants. Cooking and eating at home have risen to levels rarely seen, thus the demand for groceries and home delivery. Much can be said for the sales spurred by ecommerce giants like Amazon, Walmart and Costco, but the middle-range suppliers are also caught up in the online delivery business. Consumers do not wish to venture out and shop; therefore, they want retailers to deliver.
Download Sacramento Industrial Market Report 3Q20