Colliers Sacramento Office Snapshot: Q1 2026

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.

I Street Bridge Over Bid

If you have not heard, the design chosen for the new replacement I Street bridge was bid waaaay over budget. What was supposed to be about $300 million had bids coming between $398 million to $517 million. In my opinion, the design should be tamed down which would also bring down the estimated cost, that’s what I have to do when I realize my budget does not match my vision. If the project stalls for an extended period of time, the funding might be redirected to another project that appears ready to go? Sacramento City Express