The vacancy rate for office buildings in the Sacramento region continued its gradual decline in this years second quarter, coming in at 21.12 percent, according to the commercial brokerage firm of Cornish & Carey Commercial Newmark Knight Frank.
It marked the sixth consecutive quarter that the rate has decreased, following five years of increases. The vacancy rate peaked at an all-time high of nearly 24 percent in 2012.
Cornish & Carey said the second-quarter vacancy rate was positively impacted by Covered California, manager of the statewide health care insurance program, occupying 123,000 square feet of space at 1601 Exposition Blvd. in Sacramento.
Sacramento region employers are continuing to add jobs, and more workers is the biggest driver of the need for more office space, said John Frisch, regional managing director of Cornish & Carey. The slow but steady decrease in the office vacancy rate is a clear sign that the regional economy is improving.
Last year, the vacancy rate closed out 2013 at 21.7 percent. According to Cornish & Carey, the 21.12 percent vacancy rate translates into nearly 14 million square feet of vacant office space in the region.
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