Regional Vacancy Rate Ticks Up to Highest Point in a Decade.
As reported by Colliers Sacramento, the vacancy rate appears poised to rise
through much of the rest of the year with large blocks of space to be vacated
by CalSTRS and Centene likely to outpace scheduled occupancies of vacant
buildings by UC Davis Health, California Highway Patrol, and CapRadio.
Colliers
Sacramento Office Market Absorption & Vacancy Rate 2014-2023
Quarterly net absorption was -464,299 square feet but would
have been slightly positive without Centene’s 517,000 square foot vacant
sublease in North Natomas. The Sacramento region’s office market has now
witnessed a staggering amount of occupancy losses since early 2020 as companies
are reorienting their office space requirements in this new age of hybrid work.
Diminishing office occupancy and falling net operating incomes are beginning to
lead to distress in the office sector. It is likely property defaults will rise
in the next two years as mortgages signed before the pandemic expire.
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| Colliers Sacramento Market Fundamentals 2023 |
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| Colliers Sacramento Office Development Pipeline 2018-2024 |
