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2022 Q3 Sacramento Office Market Report

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Demand Falls Deep into Negative Territory

Although employees started returning to the office after Labor Day this year, Sacramento’s office market fundamentals revealed a steep drop in tenant demand as downsizing and consolidation continues across the board. As employers determine their office space needs, most are deciding they need less space. Market net absorption fell to its lowest total in 22 years and vacancy posted its highest quarterly increase since Q4 2020. The summer slowdown of tenant activity in the region was particularly pronounced this year and a growing list of available space is forcing landlords to be aggressive with concessions to lure tenants to their buildings. Overall asking rents are still increasing though, and set a record high this quarter. Investors returned to the market this quarter with the largest sales volume since Q3 2021 and highest average sale price per square foot since Q4 2019. As interest rates and cap rates rise, buyers will be concentrated on higher quality assets with stable tenants in place. Overall, the market’s stabilization appears to be another nine to twelve months away as availability rises and tenant demand wavers. 


2022 Q3 Sacramento Office Market Report

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Bob Shanahan

Research Manager


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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