Q1 2022 Sacramento Market Report
The Sacramento office market ended Q1 2022 with a vacancy rate of 10% showing signs of recovery. Office tenants have been beginning to gain their footing following the pandemic with sings of demand rebounding. Most of the growth has come from defensive groups including government, education and healthcare. A major lease was signed in Rancho Cordova by SK Hynix for approximately 230,000 sf of suburban class A office space and lab. The Sacramento region industrial market continues to be very strong with a vacancy rate of 3.7% with 9.1% rent growth with annual net absorption in 2021 of over 7.4 million square feet. E-commence users have continued to drive the demand in the Central Valley with Amazon taking an additional 1.3 million square feet, bringing their footprint in the region to over 4.5 million square feet.