As Sacramento's office leasing market continues to expand, vacancy has entered uncharted territory for this market. At 9.5%, tenants are feeling the pressure of potentially not finding adequate space to meet their needs.
The tightening office market combined with rising rents have given new life to office development in limited areas. Downtown, midtown and Roseville are the three areas that have shown the most interest from developers. If current market conditions continue, other areas of the market may see construction as well.