Colliers Sacramento Office Snapshot: Q4 2024

Facing record vacancy, Sacramento’s office market is now just below a record high. Also reported in Colliers International Sacramento office market report, the State of California is set to vacate a sizable amount of space next quarter and its shedding of 1.1 million square feet of leased space. Occupancy losses are outpacing new signed leases with the Department of Corrections moving out of 283,504 square feet at 151 S Street in Q1 2025 as well as others if you read the report.

After the highest sales activity in Q1 2020, both office volume and sales have been falling since then. Some of the available office space will be converting to alternative uses, the former historic Capitol Bank Building built in 1915 at 700 J Street was recently sold to Hume Development for $11.06 million and they have plans are to convert the 7-story building in to 107 guestrooms. Colliers forecast for 2025 is renewed optimism, with most large move out finished by Q2 2025, availability could stabilize.