Sacramento Office Rent Price & Sales Report

2020 Office Space Rent & Sales

  • $23.82 2020 Avg. Asking Rent
  • -3.25% Y-o-Y Avg. Asking Rent Change
  • 12.39% 2020 Office Vacancy Rate
  • $421.4M2020 Total Office Sales
  • $184.86Avg. Sale Price/SF

Sacramento office price per square foot in 2020 was $23.82 on average. This marked a -3.25% change in office space price per square foot compared to the previous year. The local office market recorded an average vacancy rate of 12.39% across all asset classes combined. The 23 transactions that closed here throughout 2020 amounted to a total sale volume of $421.4M. Sacramento office space commanded an average sale price per square foot of $184.86.

Average Rent by Office Class

2020 Average Office Rent per Square Foot

  • Sacramento Class A Office Space$31.21
  • Sacramento Class B Office Space$23.13
  • Sacramento Class C Office Space$16.84
  • California Class A Office Space$55.92
  • California Class B Office Space$35.12
  • California Class C Office Space$23.50

Sacramento, CA Office Asking Rents by Class

Average office rent in Sacramento rested at $23.82 per square foot in 2020. As would be expected, office rent price showed some variation from one asset class to another. As such, the asking rent for class A office space in Sacramento averaged $31.21 per square foot. Across all submarkets, class B office space recorded an average asking rent of $23.13 per square foot. Meanwhile, assets encompassing class C office space saw asking rents of $16.84 per square foot, on average. Comparably, statewide California average office rents by class in 2020 were: $55.92 per square foot for class A office space; $35.12 per square foot for class B office space; $23.50 per square foot for class C office space.

2020 Office Vacancy Rates in Sacramento

Submarket Asking Rents Vacancy Rates
Downtown $34.42 7.75%
Midtown $25.48 15.85%
East Sacramento $25.44 12.47%
North Sacramento $23.26 11.09%
Point West $23.10 15.50%
South Sacramento $21.60 10.75%
Highway 50 Corridor $19.25 16.65%
Carmichael - Fair Oaks $17.25 33.98%
Data provided by Commercial Edge
Submarket differences in factors such as property mix, degree of accessibility, and availability of amenities influence not only variation in office rent price, but also in vacancy rates. The overall office vacancy rate on the Sacramento market was 12.39% in 2020. Looking at the market stats on a more granular level, data shows that the lowest office vacancy rate in Sacramento was 7.75% in the Downtown submarket, while the highest office vacancy in the market was 33.98%, recorded in Carmichael - Fair Oaks.

Office Spaces for Rent in California

Sacramento Office Sale Price per SF

  • $184.862020 Avg. Price per SF
  • -22.15%Y-o-Y Avg. PpSF Change
  • $421.4M2020 Office Sales Volume
  • 232020 Number of Transactions

Sacramento, CA Sale Price per SF Trend

  • Sacramento Avg. Sale Price per SF in 2020$184.86
  • California Avg. Sale Price per SF in 2020$432.41
Sacramento office space cost in 2020 marked a -22.15% change compared to the previous year. The sale price for office space in Sacramento averaged $184.86 per square foot in 2020, across all market subdivisions and asset classes. Conversely, the statewide California average office sale price during the same time period was $432.41 per square foot.

2020 Office Sales Volume

  • Sacramento, CA Total Office Sales Volume in 2020 $421.4M
  • Sacramento, CA Total Number of Office Sales Closed in 2020 23
A total of 23 deals closed on the Sacramento office market in 2020, adding up to a yearly sales volume of $421.4M. Notably, the largest transaction on the market saw Park Tower change hands for $165,500,000 on 2/21/2020.

Largest Sacramento Office Sales in 2020

Property name Address Date Price
Park Tower 980 9th Street 2/21/2020 $165,500,000
630 K Street 630 K Street 2/26/2020 $28,100,000
California Center - 8800 & 8810 Cal Center Drive 8800 Cal Center Drive 7/10/2020 $22,400,000
Downtown Commons - 660 J Street 660 J Street 8/21/2020 $20,225,000
3310 El Camino Avenue 3310 El Camino Avenue 5/14/2020 $17,700,000
Data provided by Commercial Edge

2020 Office Construction in Sacramento, CA

  • Sacramento, CA Total SF completed in 2020 598,300
  • Sacramento, CA Total SF under construction in 2021 1,768,386

During 2020, 598,300 square feet of new office space were delivered across the market. At the close of 2020, the Sacramento office inventory included 3 buildings equal to or larger than 25,000 square feet, which comprised 598,300 square feet of office space. Looking forward, development activity throughout 2021 is estimated to add 1,768,386 square feet of office space to the market, before year-end.

Largest Office Properties Recently Completed in Sacramento
Office building Address SF Completed
Capitol Annex Swing Space 1021 O Street, 95814 472,600 2022
Aggie Square - Life-long Learning SEC 2nd Avenue & Stockton Blvd, 95820 250,000 2022
2025 19th Street 2025 19th Street, 95811 38,750 2022
715 P Street 715 P Street, 95814 838,000 2021
Clifford L. Allenby Building 1215 O Street, 95814 374,000 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
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

Worth noting among recent office completions on the Sacramento market is Capitol Annex Swing Space, which is currently the largest new office development in the city, at 472,600 square feet.

Data provided by Commercial Edge

See reports for nearby markets

This market stats report is based on analysis of city-level data that includes office properties equal to or larger than 25,000 square feet in size. Averages were calculated based on values dated January 1st 2020 through December 31st 2020. Construction pipeline data represented herein is valid as of April 2021. The information on this page was compiled using data provided by CommercialEdge, a market intelligence solution which offers comprehensive real market 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.