The vacancy rate for office buildings in the Sacramento region continued its gradual decline during the fourth quarter of 2013, finishing the year at 21.7 percent, according to the commercial brokerage firm of Cornish & Carey Commercial Newmark Knight Frank.
It marked the fourth consecutive quarter that the office vacancy rate has decreased, following five years of increases. The vacancy rate peaked at an all-time high of nearly 24 percent in 2012.
“It’s not time to break out the party hats and horns, but it’s certainly the best news that owners of office properties have had since 2007,” said John Frisch, regional managing director of Cornish & Carey. “Demand for office space is driven by job growth, and until recently in certain submarkets, there has been no job creation to speak of.”
During 2013, the brokerage said the submarkets with the most leasing activity were Roseville, Rocklin, South Natomas and Elk Grove. The areas with the least leasing activity were downtown Sacramento, West Sacramento and the Woodlake/North Sacramento submarkets.
Cornish & Carey also noted that the regional office market had 1,093,000 square feet of new net absorption during 2013, the first time that the market has broken the 1 million threshold since 2005. More than half of all the office space leased in the region in 2013 was in the Roseville and Rocklin areas.
Call The Bee’s Mark Glover, (916) 321-1184.