The Sacramento office market has performed better than many other office
markets nationally due to the region’s defensive core industries of government,
healthcare, and financial services that have buffered the market. Although not
to the same degree as other markets, the vacancy rate has increased 300 basis
points since the start of the pandemic, compared to 450 basis points nationwide.
Further, sublease space has not been a major component of rising vacancies as
they represent only 1 percent.