Sacramento’s office market is growing in all directions as expected. Inventory is up, office buildings are increasing their footprints and sizes, construction is on the climb, and finished deliveries are trending up. Sales volume has subdued as well as the volume attributed to those sales. Cap rates have remained unchanged. As expected, the vacancy rate is moving down. Similarly, about 10% of inventory is available. The Sacramento office market is performing well. With over 2 million s.f. still under construction at the end of 2Q 2019, the second half of 2019 was expected to be more active when an estimated 1/3 of those properties deliver. 5,000 s.f. of this space delivered in 3Q 2019.
Sacramento Office Market Report
3rd Quarter 2019