Real Estate
The Sacramento Region’s commercial real estate market has seen notable growth over the past five years with an increase of over 15 percent of office and 6 percent of industrial inventory (in terms of square footage). According to Colliers International, the Sacramento office market (which includes areas in the six-county Sacramento Region) had a total of almost 79 million square feet in rental building space in the third quarter of 2007 and nearly 2.9 million square feet under construction. In this quarter, total inventory in the Region’s industrial market included approximately 177 million square feet (with close to 5,500 buildings) and almost 1.2 million square feet under construction.
Vacancy rates in the third quarter of 2007 for both markets were at or below the average over the past few years. Both the office and industrial markets have positive net absorption, demonstrating that the total amount of space leased in that quarter is greater than the amount of office or industrial space vacated.
There has also been notable activity in Sacramento’s housing market over the past several years. The Sacramento market’s median home price in the first
quarter of 2007 was $357,000—lower than California’s overall median home price of $468,000 and many comparison metropolitan areas in the state.
This section of the Databook provides current and historical commercial real estate data for the office and industrial markets in the Sacramento Region. This data, provided by Colliers International, includes vacancy rates, net absorption, average lease rates, inventory, and construction. Also included within this section is an overview of the Region’s housing prices and affordability.
Selected Sacramento region photos by Tom Myer's Photography. More Sacramento images can be seen at www.tommyersphotography.com