Sacramento Office Market Report
The Sacramento office vacancy rate rose to 16.5% in the third quarter from the previous quarter’s vacancy rate of 15.4%. The largest space that contributed to this increase in vacancy was 145,869 square feet becoming vacant during the quarter in 50 Corridor East submarket. Net absorption posted a negative 783,471 square feet during the quarter bringing the year-to-date net absorption total to just over negative 1.8 million square feet. Only two large buildings (255,000 square feet and 314,000 square feet) in the Aggie Square project are currently under construction. It should be noted that an additional 1.9 million square feet of government or medical buildings are currently under construction but will not be included in the office study inventory.
Sacramento Industrial Market Report
The Sacramento Industrial vacancy rate increased slightly during the third quarter of 2023 to 3.4% from 3.3% in the second quarter of 2023. New construction for the quarter totaled 407,208 square feet. The industrial market posted a net absorption totaled just over 179,000 square feet bringing they year-to-date net absorption total to over 987,000 square feet. The Sacramento region currently has 3.4 million square feet under construction, of which just over 2.2 million square feet is scheduled for completion at the end of 2023. Most construction activity is in the Northgate submarket specifically the Metro Air Park development and the 50 Corridor East submarket.