The Sacramento region’s vacancy rate for office space, which has been gradually declining over the past three years, fell below 20 percent in the second quarter of 2015, according to Newmark Cornish & Carey’s regional office.
The second quarter vacancy rate was 19.2 percent, down from 20.27 percent in this year’s first quarter and 21.12 percent in the second quarter of 2014.
The last time the vacancy rate was below 20 percent was in the first quarter of 2009, at 19.3 percent. The region’s vacancy rate peaked at a record 23.74 percent in the first quarter of 2012.
The commercial real estate firm said the region had 11.2 million square feet of vacant office space at the close of the most recent quarter, down from 13.3 million in this year’s first quarter.
John Frisch, Newmark’s senior managing director, said the “better areas of the market during the first half of the year have been South Natomas, Point West and Rocklin. But the hottest thing in the market is small buildings under 15,000 square feet that can be purchased and occupied by businesses.”
Newmark Cornish & Carey said it expects continued gradual improvement in the region’s office market during the second half of this year.