Colliers Sacramento Office Snapshot: Q1 2021

The office market has recorded a negative one million square feet of net absorption driven by vacant sublease spaces. The Colliers Sacramento Office 2021 Q1 report, also looks closer at the six month negative trend for office space with the region loosing -493,769 square feet of new absorption in 2020, and then again in the first quarter of 2021, a negative -511,342 square feet. The future of needed office space appears to be a hybrid work model because it’s still unclear what the demand will be. Rents are also falling for downtown Class A space as urban high-rises fall out of favor and large blocks of space have come on the market. Over the last year the Sacramento office tenants continue to give back space across the market and sales are actively trending downward as investors are leery.