Sacramento office market reports

Q3 2025 highlights and trends

The Sacramento office market remained sluggish in Q2 2025, with flat net absorption and declining leasing activity as economic uncertainty, high interest rates, and stalled state leasing efforts weighed on demand. Vacancy held near record highs at 17.1%, though asking rents stayed resilient. While job postings climbed to multi-year highs, over 20% remained remote, highlighting ongoing tenant hesitancy and the persistence of hybrid work models.

-33k sf

Net Absorption 

Net absorption remained flat this quarter, as sluggish leasing demand continues to weigh on market performance.
$2.52 FS

Asking Rent

Despite muted demand, Class A asking rents have shown resilience, holding firm through the market slowdown.
17.1%

Vacancy Rate   

Vacancy continues to trend near record levels, reflecting ongoing challenges in backfilling space.

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Get in-depth office market reports and insights from commercial real estate experts in the Greater Sacramento area. Avison Young advisors look at Sacramento commercial real estate activities and the latest Sacramento statistics to provide you expert market research on Sacramento's office properties.

Explore different topics like the latest office market pricing trends and analysis of Sacramento's current office real estate market conditions. Gain a better understanding of Sacramento’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Sacramento's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Sacramento.

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