Sacramento Skyline vacancy reaches lowest point since 2001
Sacramento’s office market has become increasingly competitive in recent quarters due to renewed interest in the urban core.
April 23, 2019
- Following years of rising vacancy in Sacramento’s office market Post-Recession that saw rates hover in the mid to high teens, the landscape has become increasingly competitive in recent quarters due to renewed interest in the urban core. In addition to the usual demand drivers such as the State of California and regional healthcare systems, Sacramento recently saw one of the world’s highest profile office tenants, WeWork, commit to two floors in 400 Capitol Mall, while technology services company ICF took just under 35k s.f. at 980 9th St.
- At 5.7 percent vacancy, the Sacramento Skyline (an assortment of Downtown Sacramento’s premier Class A office buildings), now sits at its lowest point since 2001.
- Rising demand for Downtown Class A office space is borne out by the average asking rate, which has risen continuously over recent quarters, and is up 8.4% over the last two years.
- With Sacramento leaders recently approving plans for a new MLS stadium in the railyards, Downtown Sacramento office demand could skyrocket even further with expansion approval from the MSL board of governors.
Source: JLL Research