Q3 2020 Sacramento Market Report
Q3 2020 Sacramento office vacancies for Class A continued to trend below the tight national average at 8%, however could see the possibility of increased future vacancy in the form of increased sublease space in the near term. While high occupancy levels have been very strong compared with national levels, Sacramento’s demand for office space in particular Downtown is dependent on the State of California and other government entities. The government usually has the largest impact on either low vacancy when they are expanding or potentially higher vacancy if they decide to give up space.
The effect of remote working on the overall office market is yet to be seen. Many companies are on a “wait and see” approach, and renewing leases shorter term if possible to test the success of “work from home” over the next several months. However, the remote working trend is yet to be determined, and faces many challenges over the long term. Ultimately, most companies need a central office, but designed to be more flexible.
The effect of remote working on the overall office market is yet to be seen. Many companies are on a “wait and see” approach, and renewing leases shorter term if possible to test the success of “work from home” over the next several months. However, the remote working trend is yet to be determined, and faces many challenges over the long term. Ultimately, most companies need a central office, but designed to be more flexible.