Sacramento Office Figures Q3 2026

In Q3 2026, market conditions remained stable as the Sacramento office market recorded a third consecutive quarter of positive net absorption. The market posted 65,000 sq. ft. of occupancy gains, extending the recovery trend established earlier in the year, while vacancy declined 10 basis points (bps) quarter-over-quarter to 18.0%. Availability increased slightly to 23.0%, reflecting continued tenant caution despite steady leasing activity. Leasing volume totaled 630,000 sq. ft., supported by several larger transactions in Roseville/Rocklin, Folsom, and Downtown Sacramento.

While tenant demand remained active, occupancy growth slowed from the stronger gains recorded in the first half of the year. Asking rents softened modestly to $2.11 FSG, down from $2.14 FSG in Q2 2026, as landlords continued to compete for tenants in a high-vacancy environment. Construction activity remained limited, with a single 36,000-sq.-ft. office project underway in West Sacramento and no new deliveries during the quarter. Looking ahead, continued return-to-office initiatives and a lack of speculative development may support further gradual improvement in market fundamentals.