Q1 2023: Sacramento Office Market Report
The Sacramento office vacancy rate hit 11.1 percent, above its average of 9.5 percent. Net net absorption dropped to -830,000 square feet, indicating a struggle with the hybrid/work from home landscape. In addition, governmental agencies, a major component of the Sacramento region, has continued to allow “work from home” with the State of California continuing to shrink its office footprint. A bright spot has been the Semiconductor industry, most notably SK Hynix leased 300,000 square feet across multiple buildings in Rancho Cordova, providing high paying jobs to the region.