Q4 2021 Sacramento Market Report
Sacramento recently posted strong job growth by adding 5,400 jobs, bringing the annual figure to 32,700 jobs which is a 3.3% increase YOY according to the Bureau of Labor Statistics. Over half of the jobs come from government sectors. Office jobs, such as professional/business services, have almost nearly recovered. Much of the influx has begun as the result of housing expansion from the Bay Area and satellite offices. As a result, the Sacramento office market is beginning to show signs of recovery with the vacancy rate of 10.1% - nearly the 5 year average of 9.6%. Demand for office space is beginning to return as leasing activity totaling 3.7 million square feet in 2021 increased by 24% compared to 2020. The Sacramento industrial market has remained strong with a vacancy rate of 3.3% and Stockton at 5.6% versus a national average of 4.4%. Demand for industrial continues to be E-commerce with companies like Amazon who recently expanded and have taken occupancy of a 1.3 million square foot distribution center. Stockton, which is the most robust Industrial Market in the region, had an annual net absorption reaching 5 million square feet and a vacancy rate of 5.6% with rents increasing. The Stockton region will see more than 13 million square feet of industrial development expected to be completed in 2021 and 2022.