Q1 2021 Sacramento Market Report

Overall vacancy increased in Q1 2021 and sublease space now exceeds 1 million square feet in the Sacramento region for the first time in a decade. Sutter Health, facing financial impact from the Corona virus, has placed almost 200,000 square feet on the market in the Mather submarket. The Sacramento region’s overall vacancy rate which is currently at 10% is historically low with Leasing activity picking up and no new construction. We could see “musical chairs” as multiple tenants look for space at the same time. Many companies who have done short term lease extensions could be competing with other Tenants to lease the same space during the next 18 months.