The Sacramento area’s commercial/office vacancy rate has improved from a record high at the beginning of the year. The 2nd quarter rate is still quite high, still about 23%, and the improvement was not a major one, only about 1%, but it is improvement.
Current data shows there is still about 15 and a half million square feet of office space available in the greater Sacramento area. However, the many experts believe the new data shows the commercial real estate market may have turned a corner and has a chance to post a plus in the net absorption of space rate for the first time in five years.
Much of the growth is in the Roseville area, where business is moving to take advantage of bargains in higher vacancy areas that were not only hit by the recession, but were a crop of high end office space went up right as the recession was taking hold of the local economy. Large tenants looking for a great price on high end offices are taking advantage of the low prices and inventory is starting to shrink.
It is going to be a slow and not-too-obvious recovery, but here is more data that shows our local real estate market, as well as overall economy, taking yet another step in the right direction every day…