Q1 2019 Sacramento Market Report

While demand for office space has never been higher, small co-working spaces, desk-sharing and remote home employment have essentially stunted new office development throughout the rest of this real estate cycle. Also, high construction costs, and increasing, but still comparatively low rents, have contributed to the lack of expansion. While the area has achieved significant gains in rent growth, Sacramento is still a bargain compared to those in the Bay Area. The average rent in Sacramento is about 60% less than those in both San Francisco and San Jose, a 35% discount to the East Bay.