Sacramento region’s office vacancy rate dips again in 2014

The vacancy rate for office space in the Sacramento region continued its gradual decline in 2014, closing out the year at 20.12 percent, according to the regional office of Newmark Cornish & Carey, a global commercial real estate firm.

That represented a year-over-year decline of 1.57 percent. The vacancy rate peaked at nearly 24 percent in 2012.

“The decline in area vacancy rates is almost glacial in its pace,” John Frisch, senior vice president with the firm, said in a statement. “The good news is that, after five consecutive years of rising vacancy rates, we now have had back-to-back years of positive net absorption.”

The firm said most of the office leasing activity in the region last year was in south Placer County, with Roseville’s Douglas Boulevard corridor and the Rocklin submarket accounting for nearly 70 percent of all activity. The two submarkets had a combined 455,000 square feet of new office occupancy over 12 months.

The biggest loss was in the east end of the Highway 50 corridor area, which saw vacant space increase by 198,000 square feet during 2014.

This story was originally published January 14, 2015 at 2:00 AM with the headline "Sacramento region’s office vacancy rate dips again in 2014."