Monday, March 30, 2015

Colliers Downtown Office & Research Report

The 4th quarter of 2014 showed the Sacramento office market attracting both new investor groups and positive signs of the market improving. Colliers International research projects a slight drop in vacancies with no additional supply of office space in the Central Business District.

Colliers research also indicated that 4th quarter sales activities had picked up from the previous year in the total number of transactions, while the total dollar volume appeared to double sales from the previous year. Colliers stated that with the Downtown arena underway and the market steadily improving, expect to see more downtown projects and ownership transfer sales over the next 12 months as interest rates remain historically low and financing is readily available.

With just under 2 million square feet sitting vacant in the downtown market, it’s hard to envision any large office towers getting started in the next year or two.

My hope is that the Sacramento market stays stable and vacancies continue to trend downward from the peak in 2011 at 17.2%

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