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2022 Q1 Sacramento Office Market Report

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Occupancy Losses Continue as Downsizing Trend Persists

Though occupancy losses moderated in the first quarter of 2022, Sacramento’s office market recorded its eighth straight quarter of negative net absorption and rising vacancy. As employees return to the office in the spring, we will start to see more clarity around firms’ future space needs. The current downsizing trend is showing few signs of slowing down, however, there are several significant signed leases that will be occupied in the next six months. Those new leases might not be enough to stem the tide of rising availability though and sublease space remains at an elevated level. Downtown recorded its highest quarterly net absorption total since Q4 2019, yet a few firms have recently leased new spaces smaller than their existing footprints. Overall average asking rents increased for the first time since Q1 2021 but are still down year-over-year. Public sector construction continues to exacerbate the market’s fundamentals as the State of California vacates leased space and relocates to owned space. Sales activity got off to a slow start this year but there are two firms who remain bullish on the market and made sizable acquisitions this quarter. 

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2022 Q1 Sacramento Office Market Report

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Bob Shanahan

Research Manager

Sacramento

Bob entered commercial real estate at the start of 2015 at Colliers in Seattle/Bellevue and has more than seven years of commercial real estate research experience. A writer by nature, Bob is always trying to tell the story behind the numbers and go above and beyond to add value to his brokerage partners. Forever teachable and eternally curious, Bob strives to always be learning more while staying on the leading edge of market trends and remaining abreast of all pertinent real estate transactions and developments. Passionate about real estate and urban planning, Bob is dedicated to taking Colliers to the next level by providing market-leading thought leadership and trends analysis for his internal and external clients.. Bob is a natural-born storyteller, always digging into the statistics with unmatched nuance to craft a forward-looking narrative and outlook across the many sectors of commercial real estate he tracks.  

With extensive experience in office, industrial, multifamily, and retail research, and a developing competency in capital markets, life science, and healthcare/medical office, Bob assists brokers in the leasing and selling of property, providing best in class research support. He regulary provides market presentations for internal brokerage teams and external organizations. Bob focused primarily on the office and industrial markets in the Seattle/Puget Sound region from 2015-2017. From fall 2017 to early 2018, Bob was the office market research analyst at JLL in Sacramento with an emphasis on Downtown landlord-rep related research. 

Since May 2018, Bob has been back at Colliers in his hometown of Sacramento. Since mid-2018, Bob bas accelerated his career in the support of 40 brokers across the Capital City region. In late  2020, Bob was tasked with overseeing the Reno market while managing a new Research Analyst, and has taken on an increasing leadership role in the Northwest region, including leading the regional multifamily market report comprised of 10 markets from Northern California and Northern Nevada to Oregon and Washington. Bob has invested in his leadership development, recently completing the two year Management Development Program at Colliers in partnership with Harvard Business School and completing the year long Leadership Sacramento Class of 2021 through the Sacramento Metro Chamber Foundation.  

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