Randall Benton / rbenton@sacbee.com

Designers work at the Wallrich Creative Communications office on Wednesday in Sacramento. Wallrich moved into the renovated midtown building in order to accommodate a growing workforce. The uptick in the office market is likely a sign of a slowly strengthening economy.

Sacramento’s office market improved dramatically in 2013

Published: Friday, Jan. 3, 2014 - 2:02 pm
Last Modified: Friday, Jan. 3, 2014 - 2:16 pm

Sacramento’s office market showed the second-best gains in net absorption in northern California last year, trailing behind only the booming Silicon Valley, according to a report released Thursday by commercial brokerage Jones Lang LaSalle.

Net absorption - the amount of office space leased minus the amount vacated - increased in the Sacramento area by 1.6 million square feet in 2013, the firm said. That was the largest increase as a percent of total inventory in the United States, it said.

Tenants leasing less than 10,000 square feet, including professional services and healthcare users, generated most of the new leases, Jones Lang LaSalle said. The state of California has been one of the major tenants in the market for new office space, it said.

Average asking rental rates rose 1 percent to about $22 per square foot. That’s about 60 percent less than the average asking rate in San Francisco, which is roughly $56.88.

The firm predicted falling unemployment and a strengthening economy will lead to “strong leasing activity and positive absorption in 2014.”

Call The Bee’s Hudson Sangree, (916) 321-1191.

Read more articles by Hudson Sangree

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