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%
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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