Q3 2021 Sacramento Market Report
The Sacramento office market has been relatively flat over the past year with a vacancy rate of 10.1%. Many companies have been focused on downsizing and attempting to shift to a “hybrid real estate strategy”, even if only a portion of their staff is either working from home full-time or a few days a week. Total office net absorption annual total is -810,000 sf, with Tenants only willing to relocate if terms and concessions are beneficial. While the office market has been relatively flat, albeit better the overall national office market, the region’s Industrial market has been quite strong. The vacancy rate for Industrial is 4% with annual rent growth of 7.6% over the last year. Industrial users have been driving the market including Amazon who has taken an additional 1.3 million square foot distribution center in Metro Air Park.