It’s becoming pretty evident that the local office market is
in a death kneel. In just a few months when the new State of California’s Richards
Blvd. office complex opens, the delivery of 1.25 million square feet will lead
to vacancies in both state-owned and leased offices as the state fills the new
complex. In the current
Colliers Q4 Sacramento office report, there are several office properties that are being considered for office conversion to
housing, one location is at 1800 3
rd Street, the vacant CalPERS
building could convert to 141 apartment units. The State has three buildings on
Capitol Mall totaling 1.08 million square feet of existing office space
currently being evaluated for office to residential conversion.
Colliers fourth quarter report also shows the Sacramento office
market recorded its sixth consecutive quarter of occupancy losses. For the year
of 2023, there was a total net loss of -1,184,793 square feet of leased office space
which is a slight improvement compared to 2022, but It appears the vacancies
numbers are due to rise some more in 2024.
Posts
