Sacramento Office Market Trends

Office Rental Market

  • $24.62 2019 Avg. Asking Rent
  • 10.32 % 2019 Avg. Vacancy Rate
  • 90,000 2019 Office Completions (Sqft)
  • 1,482,300 2020 Estimated Pipeline (Sqft)
In 2019, the average asking rent for office space in Sacramento was $24.62 per square foot, and the office vacancy rate across the market averaged 10.32 %. During 2019, developers added 90,000 square feet of new office space to the Sacramento market inventory. Office developments estimated for delivery during 2020 total 1,482,300 square feet.

Average Office Asking Rents by Class

2019 Average Office Rent per Square Foot

  • Sacramento Class A Office Buildings$31.78
  • Sacramento Class B Office Buildings$23.94
  • Sacramento Class C Office Buildings$16.81
  • CA Class A Office Buildings$51.59
  • CA Class B Office Buildings$34.34
  • CA Class C Office Buildings$22.62

Sacramento, CA Office Asking Rents by Class

Office asking rents vary across the Sacramento office market depending on several factors, one of which is property class. While rents for Class A office buildings in Sacramento averaged $31.78 per square foot in 2019, Class B office properties garnered average rental rates of $23.94 per square foot. Rental rates for Class C office property in Sacramento averaged $16.81 per square foot. On a statewide level, Class B office space rents averaged $34.34 per square foot, while rents for Class A office space across California averaged $51.59 per square foot. On average, Class C office properties in California commanded rents of $22.62 per square foot.

2019 OFFICE VACANCY RATES

Submarket Asking Rents Vacancy Rates
Downtown $33.06 5.03 %
Midtown $26.14 9.67 %
East Sacramento $26.10 7.81 %
Point West $22.84 10.32 %
North Sacramento $22.40 10.65 %
South Sacramento $21.12 15.60 %
Highway 50 Corridor $19.06 11.49 %
Carmichael - Fair Oaks $16.56 11.18 %
Data provided by Commercial Edge
  • The lowest office vacancy rate in 2019 in Sacramento was 5.03 % in the Downtown submarket, where asking rents averaged $33.06.
  • The highest office vacancy rate in 2019 in Sacramento was 15.60 % in the South Sacramento submarket, where asking rents averaged $21.12.

OFFICE CONSTRUCTION IN Sacramento, CA

  • Sacramento, CA Total Sqft completed in 2019 90,000
  • Sacramento, CA Total Sqft under construction in 2020 1,482,300
10 Largest Office Buildings in Sacramento
Building name Address Total Sqft Year built
Franchise Tax Board Office Complex 9645 Butterfield Way, 95827 1,814,056 1984
Capitol Area East End Complex 1501 Capitol Avenue, 95814 1,474,705 2003
CalEPA Headquarters 1001 I Street, 95814 950,000 2001
Capitol Square 450 N Street, 95814 868,131 1991
Natural Resources Headquarters 715 P Street, 95814 838,000 2021
Resources Building 1416 9th Street, 95814 656,625 1964
744 P Street 744 P Street, 95814 620,000 1969
Lincoln Plaza East & West 400 Q Street, 95811 538,162 2005
DMV Headquarters 2415 1st Avenue, 95818 518,364 1960
722 & 800 Capitol Mall 722 Capitol Mall, 95814 505,832 1957
Largest Office Properties Recently Completed in Sacramento
Office building Address Sqft Completed
Natural Resources Headquarters 715 P Street, 95814 838,000 2021
Capitol Annex Swing Space 1021 O Street, 95814 472,000 2021
Clifford L. Allenby Building 1215 O Street, 95814 372,000 2021
Natomas Crossing Quad B - Building A 4201 East Commerce Way, 95834 255,900 2020
Natomas Crossing Quad B - Building B 4201 East Commerce Way, 95834 255,900 2020
Natomas Corporate Center - 2555 Natomas Park Drive 2555 Natomas Park Drive, 95833 86,500 2020
River Plaza Office Building 2600 River Plaza Drive, 95833 60,000 2019
Natomas Pointe Plaza - Building E 2920 Advantage Way, 95834 30,000 2019
Office at The Ice Blocks 1610 R Street, 95811 171,924 2018
700 North 10th Street 700 North 10th Street, 95811 162,353 2011
Data provided by Commercial Edge

Office Spaces for Rent in California

SACRAMENTO OFFICE SALES TRENDS

  • $241.382019 Avg. Price per Sqft
  • 10.51 %Y-o-Y Avg. PpSF Change
  • $712.6M2019 Office Sales Volume
  • 312019 Number of Transactions

In 2019, office sales in Sacramento averaged $241.38 per square foot. This marked a 10.51 % increase in office price per square foot, compared to the previous year. A total of 31 office sales closed on the Sacramento office market in 2019, amounting to a total sales volume of $712.6M.

Average Office Sale Price per Sqft

Sacramento, CA Sales Trends

  • Sacramento Price per Sqft$241.38
  • California Price per Sqft$437.86

Office Sales - Trend and Volume

  • Sacramento, CA Total Office Sales Volume in 2019 $712.6M
  • Sacramento, CA Total Number of Office Sales Closed in 2019 31

Largest Sacramento Office Sales in 2019

Property name Address Date Price
Wells Fargo Center 400 Capitol Mall 10/29/2019 $198,750,000
Emerald Tower 300 Capitol Mall 6/27/2019 $127,000,000
1515 S Street 1515 S Street 4/26/2019 $115,000,000
Granite Regional Park Building II 3341 Power Inn Road 12/20/2019 $40,500,000
2300 River Plaza Drive 2300 River Plaza Drive 7/12/2019 $22,000,000
Data provided by Commercial Edge

See trends for nearby markets

The Sacramento office market contains an inventory of 46,454,720 square feet of office space, in 696 buildings that are equal to or larger than 25,000 square feet.

This market trends report is based on analysis of city-level data. Averages were calculated based on values dated January 1st 2019 through December 31st 2019. Construction pipeline data shown is valid as of April 2020. The information on this page was compiled using data provided by our sister company, CommercialEdge – a market intelligence solution which offers comprehensive knowledge on all Sacramento commercial properties sized 25,000 square feet or larger.

While every effort was made to ensure the accuracy of the data presented in this report, the information is provided “as is” and neither CommercialCafe nor CommercialEdge can guarantee that the information provided is complete.