Sacramento Office Market Report
| Average Asking Rent (Price/SF) | $2.15 |
| Vacancy Rate (%) | 13.6% |
| Net Absorption (SF) | 130,392 |
As 2022 comes to an end, economic worries continue to be the main concern. Although gas prices are decreasing, they are still high, while inflation continues to be a concern for a potential impending recession. The end of 2022 also saw the beginning of company layoffs, especially in the tech sector. Looking closer at the numbers, most companies were on a hiring frenzy during the pandemic; now that the pandemic is over, companies are adjusting their workforce numbers. The office vacancy rate ended the year at 13.6%, a decrease from 14.0% in the third quarter of 2022. This marked the first time that the vacancy rate has decreased since the second quarter of 2020. The year-end 2022 vacancy rate is the highest year-end vacancy rate since the year-end 2017 vacancy rate of 13.7%. More office space is expected to hit the market during 2023 so the vacancy rate will increase.
Download Sacramento Office Market Report 4Q22
Sacramento Industrial Market Report
| Average NNN Asking Rent (Price/SF) | $0.76 |
| Vacancy Rate (%) | 2.9% |
| Net Absorption (SF) | 907,173 |
The Sacramento industrial market continued to outperform all other property types, despite the economic uncertainty, rising debt costs and inflation during the fourth quarter of 2022, and remains poised to weather the storm as 2023 begins. The market continued to persevere in the fourth quarter of 2022, posting positive net absorption stemming from strong leasing and sales activity. Last quarter, leasing activity remained stable. Owner-user sales and investment sales continue to endure, despite the challenges of rising rates and limited inventory.