Q4 2022 Sacramento Market Report
Current office vacancy is 10.6% in the Sacramento region and has continued to climb. The main factor for increasing office vacancy rates is a lack for leasing activity, and companies continue to shed space as their leases roll over. Three star properties have a vacancy of 11.4% versus four and five star at 10% which might be the result of a flight to quality as Tenants lease less space going forward. Aggie Square a public-private development between UC Davis and Wexford Scientific for life sciences uses recently signed leases with Cytvia and the Alice Waters Institute. Most all other new office construction projects have been for the Public Sector. The Sacramento region’s industrial market remains active with an average vacancy rate of 4.6% and average asking lease rates in the +/-$.86 psf/mo range NNN which is the highest point in 10 years. E-Commerce continues to drive the market with the Metro Air Park especially active with companies such as Amazon signing leases in 2022.