Q2 2022 Sacramento Market Report
The Sacramento office market has been relatively flat over the past year with a vacancy rate of 10.3%. We have seen downsizing with many companies still in a “Hybrid” work environment where occupiers have been either downsizing as leases have been expiring or relocating with a flight to quality. As a result, the vacancy for 4 and 5 star properties is at 9% versus 3 star building vacancy at 11.4%. The CBD leasing activity has been slow with most of the transactions under 5,000 sf. Aggie Square, a new development in the biotech sector, recently broke ground and has signed deals with Cytvia and Alice Waters Institute. Employment levels have been healthy in the Sacramento region with unemployment levels falling to 4.3% with the relative affordability of the region attracting residents from the Bay Area and Southern California.