Q1 2020 Sacramento Market Report

Sacramento’s office rent growth in Q1 2020 was exceptionally strong not only by historical standards but also by national standards. It has yet to be seen what the COVID-19 impact will be on the Sacramento region’s commercial real estate market.  Lack of inventory and steady demand for office space Downtown and in select suburban markets have driven rent levels to all time highs.  Downtown office space is approximately 25% premium to the rest of the market.  Industrial space vacancies are at all time lows with lease rates setting new highs.  With Sacramento County on a lockdown, the underlying question is how the current crisis will affect demand for office and industrial space for the coming weeks and months.