Sacramento Office Market Report
Sacramento’s office market showed signs of stabilizing in the third quarter. The total vacancy rate stood at 16.8%, an improvement from last quarter’s vacancy rate of 17.2%. The office market recorded the highest net absorption since the start of the pandemic at nearly 259K square feet during the third quarter, however it was not enough to offset contractions earlier in the year. Leasing activity was at its highest level in a year with year-to-date leasing activity on par with total 2023 levels, and if the pace continues, total leasing in 2024 could match or even surpass 2020 total leasing levels. While there is still quite a gap to full recovery, the market is trending in a better direction.
Sacramento Industrial Market Report
The industrial vacancy rate ticked-up 20 basis points quarter-over-quarter to 5.7%. This is also up from one year ago where the vacancy rate stood at 3.5%. For the first time since 2010, annual absorption is dropping into the negative. Year-to-date net absorption stood at slightly more than negative 540,700 square feet. Leasing activity picked up in the third quarter 2024 at just under 1.8 million square feet. Industrial average asking rents dropped during the third quarter of 2024 at $0.79/SF compared to $.81/SF in the second quarter and $0.85 one year ago.