Sacramento – Office Market Report – Q1 2021

What are the trends for Sacramento commercial office space in 2021?

Market Summary.

Sacramento office vacancies have continued to rise in 2021 as demand, after landing in negative territory last year, is again trending in the red. While an end to the coronavirus pandemic may be in sight, economic uncertainty is likely to remain for some time, and a further rise in vacancies may be on the horizon. Availabilities have notably increased since the onslaught of the virus, and sublet space has risen to an all-time metro high.

Key Takeaways.

  • Job growth typically outpacing the national average, a lack of new construction, and steady demand has kept the metro vacancy rate in single digits since 2018, including again in the early days of 2021.

  • Sacramento’s office market has felt the effects of the coronavirus pandemic and resulting recession. Annual leasing activity in 2020 fell to one of the lowest levels on record and has remained tepid in the new year.

  • This past decade, steady demand and few inventory additions allowed landlords to push rents at levels that were usually unobtainable in Sacramento. Over the past five years, year-over-year gains averaged

The numbers.

2021 Q1 Sacramento Office Key Indicators

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