The regional office market trend appears to be flat, according to Colliers International Sacramento. Because the lack absorption especially on functionally obsolete properties, office conversions and redevelopment will continue. One of the conversions currently underway is the reuse of 700 J Street, a 69,000 SF office building converted into the 95-room hotel Eleanor. It should also be noted that the State of California has finished renovations to 1416 Ninth Street former Resources Building. The 17-story tower will now house the Employment Development Department which is moving out of their longtime offices on Capitol Mall.
The high vacancy rate for the Sacramento office market
peaked in Q4 2024 at 24.1%, since then leasing has been steady and vacancies have
been declining. Demand from healthcare sector is growing, most of
the new leases have been from existing tenants relocating into other buildings.
Read more here.
Posts
No comments:
Post a Comment