Q2 2021 Sacramento Market Report
At the end of Q2 2021, the Sacramento office market had over 1.1 million square feet of available space which rose from Q1. In general, the Sacramento office market has been better off than national averages with a vacancy rate of 10.2% which is .5% higher than Q1 2021. Sublease space continues to contribute to overall office vacancy with light office user activity following the slow re-opening of the economy, however industrial activity remains robust. The Sacramento CBD office market’s future vacancy will hinge upon how the State of California modifies its future work from home policies. There are rumors of several departments consolidating their office space needs as their leases roll within the next 12-18 months. Since the State of CA is the largest user of office space in the CBD, this could have a lasting impact on vacancy and the overall health of the downtown office market.