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Offices in Burlingame, Los Altos, Monterey, Oakland, Palo Alto, Pleasanton, Sacramento, Salinas, San Francisco, San Jose, San Rafael, Santa Rosa, Walnut Creek
Broker Lic #00825241 www.cassidyturley.com
City, State Year
Office Report
Sacramento Valley Second Quarter 2014
SACRAMENTO
Office Market Snapshot Second Quarter 2014
Leasing Momentum Leads to Strong Q2
The Sacramento office market continued to perform well during the
second quarter of 2014, with regional vacancy falling to 14.9%,
which is the lowest, post-recession vacancy rate the area has seen
and the first time vacancy has fallen under 15% in nearly five
years. Q2 also recorded 238,000 square feet of occupancy growth,
marking the fourth consecutive quarter of occupancy growth in
excess of 100.000 square feet. Year to date net absorption figures
currently stand at 385,000 square feet.
While the private sector has been and continues to be the dominant
driver of growth in the area, interestingly enough, the public sector
appears to be making a quiet but noticeable reappearance. One of
the largest leases of the quarter was signed by CalPers for 77,500
square feet in West Sacramento. Sacramento County also signed a
lease for 54,000 square feet in Natomas. In fact, some of the
largest leases of the year have been signed by public sector
tenants. While it may not be a ‘comeback’ per se, as many
government agencies are still in contraction mode, the
reappearance of public sector tenants is definitely encouraging
news for the region.
At the submarket level, roughly half of the region’s submarkets
recorded positive growth in Q2, but the majority of those that
posted occupancy declines saw negligible levels of negative net
absorption. Of the nine submarkets that recorded positive numbers,
five of these submarkets had growth in excess of 30,000 square
feet. The biggest winner of the quarter was the Point West
submarket, which recorded 168,000 square feet of occupancy
growth, which is the largest amount of post-recession growth this
submarket has seen. The majority of this growth is attributable to
Covered California taking occupancy of the 132,000 square feet
that they signed for in Q1. Vacancy in this trade area currently
stands at 20.8%, which is the lowest recorded vacancy rate Point
West has seen since Q3 2008. Point West was particularly hard-hit
by the recession and has since struggled to recover – the vacancy
rate here peaked at 32.2% at the beginning of 2012 and has
consistently hovered between 27 and 30% since. Other submarkets
SACRAMENTO OFFICE
Economics Indicators
Q2 13 Q2 14 12-Month
Forecast
Sacramento Employment 963,300 973,300
Sacramento Unemployment 8.4% 6.6%
U.S. Unemployment 6.7% 6.3%
Market Indicators
Q2 13 Q2 14 12-Month
Forecast
Overall Vacancy 15.9% 14.9%
Net Absorption SF -69K 238K
Under Construction SF 0 0
Average Asking Rent (FS) $1.64 $1.65
Net Absorption/Asking Rent (Full Service) 4Q TRAILING AVERAGE
Overall Vacancy
$1.50
$1.60
$1.70
$1.80
$1.90
$2.00
-1.5
-1
-0.5
0
0.5
1
1.5
2
2010 2011 2012 2013 2014
4Q Trailing Net Abs.(MSF)
Avg Asking (FS)
10%
11%
12%
13%
14%
15%
16%
17%
18%
2010 2011 2012 2013 2014
Historical Average = 16.5%
SACRAMENTO
Office Market Snapshot Second Quarter 2014
www.cassidyturley.com | 2
$1.50
$1.60
$1.70
$1.80
$1.90
$2.00
$1.90
$2.00
$2.10
$2.20
$2.30
$2.40
$2.50
2009 2010 2011 2012 2013 2014
Class A Class B
that recorded over 30,000 square feet of growth include
Roseville/Rocklin, Auburn/Lincoln and Highway 50/Rancho
Cordova.
Rental rates continue to remain stagnant, despite strong activity
and decreased vacancy. Rental rate growth is not expected until
vacancy edges closer to the 10% threshold. The good news for
local landlords, however, is that the market is definitely trending
this way—though we think it will be at least another 18 to 24
months before 10% vacancy levels become a possibility. So far,
2014 has experienced a good momentum of leasing activity and
notably, a few of the leases inked this year were made in
buildings that have been close to or fully vacant since the
recession, otherwise known as ‘zombie buildings’. Many of these
‘zombie’ buildings were delivered and put onto the market right
as the recession started, just as the tenant base that could
possibly fill them began to contract. And though the majority of
demand that we are tracking has been primarily for smaller
(20,000 square feet or less) spaces, we are seeing a slight uptick
in larger requirements as well. If these requirements translate into
actual deals (and many, if not most of them, will), expect vacancy
to fall further, at least into the low 14% or possibly even into the
higher 13% range by the end of the year.
Average Asking Rate by Submarket (Full Service) DOWNTOWN STILL THE HIGHEST RENT IN TOWN
Availabilities by Size Segment 5-10K SPACES INCREASE IN DEMAND
Average Asking Rate by Class (Full Service) RENTAL RATES REMAIN STAGNANT
Outlook
Vacancy falls to 14.9% - the first time vacancy has fallen under 15% in five years
The private sector continues to drive demand, but the public sector is making a reappearance
Rental rates remain stagnant. Leasing activity is strong, larger blocks of space are beginning to see an increase in demand. Vacancy will continue to fall, possibly hitting the low 14% range by the end of the year
We are seeing a slight uptick in larger requirements as well...
Full
Ser
vice
Class B
Cla
ss A
1,336
1,455
285169
0-5K
5-10K
10-20K
20K+
3,245
Listings
$2.09
$1.84
$1.75 $1.74 $1.73 $1.71 $1.69 $1.66 $1.66 $1.65
$1.58 $1.53 $1.53
$1.47 $1.46 $1.40 $1.39
$1.35
$1.22
$1.00
$1.25
$1.50
$1.75
$2.00
$2.25
DT ES CC FOL MID NAT DW PW WTT RR RLNH H50 HF AL EDH CHO WS SS CFO
SACRAMENTO
Office Market Snapshot Second Quarter 2014
www.cassidyturley.com | 3
Cassidy Turley Office Market Snapshot Sacramento Second Quarter 2014
TOTAL
BLDGS INVENTORY
SUBLET
VACANT
DIRECT
VACANT
VACANCY
RATE
CURRENT NET
ABSORPTION
YTD NET
ABSORPTION
UNDER
CONSTRUCTION
AVERAGE
ASKING RENT
(ALL Classes)
AVERAGE
ASKING RENT
(CLASS A)
Submarket
Downtown Sacramento 217 18,880,893 30,606 2,181,788 11.7% (59,983) (20,834) 0 $2.09 $2.61
Auburn / Lincoln 66 1,358,736 0 174,272 12.8% 37,627 42,402 0 $1.47 N/A
Campus Commons 41 1,221,147 0 255,763 20.9% 9,206 (3,861) 0 $1.75 N/A
Carmichael / Fair Oaks 46 979,245 0 91,488 9.3% 3,710 (13,998) 0 $1.22 N/A
Citrus Heights / Orangevale 52 1,437,275 0 195,384 13.6% (5,472) (14,297) 0 $1.40 N/A
Davis / Woodland 78 1,975,100 0 160,919 8.1% (14,983) (3,783) 0 $1.69 $2.10
East Sacramento 32 1,840,496 0 234,566 12.7% 7,215 9,724 0 $1.84 N/A
El Dorado Hills 71 1,646,430 12,207 312,152 19.7% 8,535 26,638 0 $1.46 $1.60
Folsom 102 4,777,945 28,433 528,573 11.7% (11,225) 1,350 0 $1.74 $1.92
Highway 50 / Rancho Cordova 297 17,219,679 72,789 2,435,860 14.6% 37,389 64,029 0 $1.53 $1.80
Howe Ave / Fulton Ave 78 2,459,066 0 621,138 25.3% (4,173) (48,642) 0 $1.53 $1.85
Office Class Breakdown
Class A 187 25,974,397 122,715 3,331,911 13.3% 35,690 132,817 0 $2.06
Class B 877 39,188,395 49,488 6,254,235 16.1% 175,603 263,492 0 $1.65
TOTAL 1,812 85,312,023 174,094 12,530,786 14.9% 237,624 384,670 0 $1.65 $2.06
Midtown Sacramento 101 3,705,068 0 237,103 6.4% 30,914 15,601 0 $1.73 $2.75
Point West 50 2,706,640 3,000 561,083 20.8% 168,410 182,885 0 $1.66 $1.84
Natomas / Northgate 110 6,406,363 0 1,401,166 21.9% (33,549) (41,696) 0 $1.71 $1.91
Rio Linda / North Highlands 29 1,009,080 0 302,855 30.0% 0 (1,258) 0 $1.58 N/A
Roseville / Rocklin 260 10,348,117 3,896 1,861,439 18.0% 120,904 237,979 0 $1.65 $1.82
South Sacramento 97 3,033,964 0 438,965 14.5% (2,238) 9,344 0 $1.35 N/A
Watt Ave 49 2,323,453 1,891 294,781 12.8% (2,150) (5,721) 0 $1.39 N/A
West Sacramento 36 1,983,136 21,272 241,491 13.2% (51,513) (51,192) 0 $1.67 $1.72
Key Lease Transactions Q2 14
PROPERTY SF TENANT LANDLORD TRANSACTION TYPE SUBMARKET
710 Riverpoint Cir 77,490 CalPers Buzz Oates New Lease West Sacramento
2101 Arena Blvd 54,234 Sacramento County Realty Advisors, Inc. New Lease Natomas/Northgate
1104 Investment Blvd 37,352 Blue Cross & Blue Shield LBA Realty New Lease El Dorado
Key Investment Sale Transactions Q2 14
PROPERTY SF BUYER SELLER SALE PRICE SUBMARKET
2480 Natomas Park Dr 52,300 2480 Natomas Park Dr, LLC 42 Natomas Park Dr, LLC $4,200,000 Natomas/Northgate
1900 Point West Way 56,686 Dan Caputo Company Vertical Equity Partners $4,036,818 Point West
1700 Prairie City Rd 12,149 Yang Family Revocable Trust Folsom Corners, LLC $3,700,000 Folsom
SACRAMENTO
Office Market Snapshot Second Quarter 2014
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About Cassidy Turley
Cassidy Turley is a leading commercial real estate services provider with more than 4,000 professionals in more than 60 offices nationwide. With headquarters in Washington, DC, the company represents a wide range of clients—from small businesses to Fortune 500 companies, from local non-profits to major institutions. The firm completed transactions valued at $25.8 billion in 2013, manages approximately 400 million square feet on behalf of institutional, corporate and private clients and supports more than 24,000 domestic corporate services locations. Cassidy Turley serves owners, investors and tenants with a full spectrum of integrated commercial real estate services—including capital markets, tenant representation, corporate services, project leasing, property management, project and development services, and research and consulting. Cassidy Turley enhances its global service delivery outside North America through a partnership with GVA, giving clients access to commercial real estate professionals in 65 international markets. Please visit www.cassidyturley.com for more information about Cassidy Turley.
Abby Friedman Research Analyst 520 Capitol Mall 5th Floor Sacramento, CA 95814 Tel: 916.375.1500 Fax: 916.376.8840
Managing Editor:
Garrick Brown Director of Research [email protected] The information contained within this report is gathered from multiple sources considered to be reliable. The information may contain errors or omissions and is presented without any warranty or representations as to its accuracy. Copyright © 2014 Cassidy Turley. All rights reserved.
Office Submarkets Sacramento
Market SummaryBuilding
Sq.Ft. Direct Sublease Total Q2-14 Q2-13
Downtown Sacramento 18,880,893 2,181,788 30,606 2,212,394 11.7% 11.5% $2.09
Auburn / Lincoln 1,358,736 174,272 0 174,272 12.8% 16.6% $1.47
Campus Commons 1,221,147 255,763 0 255,763 20.9% 21.2% $1.75
Carmichael / Fair Oaks 979,245 91,488 0 91,488 9.3% 12.0% $1.22
Citrus Heights / Orangevale 1,437,275 195,384 0 195,384 13.6% 14.1% $1.40
Davis / Woodland 1,975,100 160,919 0 160,919 8.1% 8.6% $1.69
East Sacramento 1,840,496 234,566 0 234,566 12.7% 13.1% $1.84
El Dorado Hills 1,646,430 312,152 12,207 324,359 19.7% 23.0% $1.46
Folsom 4,777,945 528,573 28,433 557,006 11.7% 10.8% $1.74
Highway 50 / Rancho Cordova 17,219,679 2,435,860 72,789 2,508,649 14.6% 15.7% $1.53
Howe Ave / Fulton Ave 2,459,066 621,138 0 621,138 25.3% 23.9% $1.53
Midtown Sacramento 3,705,068 237,103 0 237,103 6.4% 8.9% $1.73
Natomas / Northgate 6,406,363 1,401,166 0 1,401,166 21.9% 21.3% $1.71
Point West 2,706,640 561,083 3,000 564,083 20.8% 26.4% $1.66
Rio Linda / North Highlands 1,009,080 302,855 0 302,855 30.0% 31.1% $1.58
Roseville / Rocklin 10,348,117 1,861,439 3,896 1,865,335 18.0% 21.2% $1.65
South Sacramento 3,033,964 438,965 0 438,965 14.5% 17.3% $1.35
Watt Ave 2,323,453 294,781 1,891 296,672 12.8% 13.6% $1.39
West Sacramento 1,983,326 241,491 21,272 262,763 13.2% 10.7% $1.67Totals 85,312,023 12,530,786 174,094 12,704,880 14.9% 15.9% $1.65
Vacancy by Area
Average Asking Rate by Area (FS)
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Vacant Space Vacancy RateSubmarket
Avg. Asking Rate
(FS)
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Q2-14 Q2-13
Office Market ReportSacramento Valley • Second Quarter 2014
Total MarketQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 25,923,228 25,974,397 25,974,397 25,974,397 25,974,397Class B 39,087,449 39,129,449 39,104,449 39,166,445 39,188,395Class C 20,164,231 20,164,231 20,164,231 20,149,231 20,149,231Total Building Base 85,174,908 85,268,077 85,243,077 85,290,073 85,312,023
Direct Availabilities:
Class A 3,641,582 3,483,581 3,420,932 3,353,470 3,331,911Class B 6,607,321 6,465,416 6,411,210 6,382,737 6,254,235Class C 3,025,832 3,081,197 2,985,994 2,980,890 2,944,640Total Building Base 13,274,735 13,030,194 12,818,136 12,717,097 12,530,786
Sublease Availabilities:
Class A 168,652 129,344 128,428 126,837 122,715Class B 74,677 79,214 72,149 74,729 49,488Class C 2,903 1,891 1,891 1,891 1,891Total Building Base 246,232 210,449 202,468 203,457 174,094
Total Availables
Class A 3,810,234 3,612,925 3,549,360 3,480,307 3,454,626Class B 6,681,998 6,544,630 6,483,359 6,457,466 6,303,723Class C 3,028,735 3,083,088 2,987,885 2,982,781 2,946,531All Types 13,520,967 13,240,643 13,020,604 12,920,554 12,704,880
Total Occupancy SF 71,653,941 72,027,434 72,222,473 72,369,519 72,607,143
Growth Rate (%) 0.0% 0.3% 0.3% 0.1% 0.3%
Vacancy:
Class A 14.7% 13.9% 13.7% 13.4% 13.3%Class B 17.1% 16.7% 16.6% 16.5% 16.1%Class C 15.0% 15.3% 14.8% 14.8% 14.6%All Types 15.9% 15.5% 15.3% 15.1% 14.9%
Avg. Asking Rate (FS/Month)
Class A $2.05 $2.05 $2.04 $2.04 $2.06Class B $1.63 $1.63 $1.63 $1.63 $1.65Class C $1.14 $1.16 $1.16 $1.17 $1.17All Types $1.64 $1.63 $1.64 $1.63 $1.65
New Construction:
Class A 0 51,169 0 0 0Class B 0 42,000 0 25,916 21,860Total A & B 0 93,169 0 25,916 21,860
Absorption Trend
Gross Absorption 1,087,577 1,258,164 834,611 690,826 1,027,680Net Absorption -69,373 373,493 195,039 147,046 237,624YTD Net Absorption 18,148 391,641 586,680 147,046 384,670
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
17.5% 17.4% 17.5% 17.6% 17.4%17.0%
16.0% 15.8% 15.9%15.5% 15.3% 15.1% 14.9%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
12%
16%
20%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Downtown SacramentoQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 9,091,300 9,091,300 9,091,300 9,091,300 9,091,300Class B 5,677,462 5,677,462 5,677,462 5,677,462 5,677,462Class C 4,112,131 4,112,131 4,112,131 4,112,131 4,112,131All Types 18,880,893 18,880,893 18,880,893 18,880,893 18,880,893
Direct Availabilities:
Class A 1,015,322 1,020,638 913,623 894,889 918,255Class B 710,034 840,458 863,837 839,772 883,775Class C 398,600 403,819 382,726 388,607 379,758All Types 2,123,956 2,264,915 2,160,186 2,123,268 2,181,788
Sublease Availabilities:
Class A 32,347 15,376 15,376 15,376 16,839Class B 19,352 19,352 15,998 13,767 13,767Class C 0 0 0 0 0All Types 51,699 34,728 31,374 29,143 30,606
Total Availables
Class A 1,047,669 1,036,014 928,999 910,265 935,094Class B 729,386 859,810 879,835 853,539 897,542Class C 398,600 403,819 382,726 388,607 379,758All Types 2,175,655 2,299,643 2,191,560 2,152,411 2,212,394
Total Occupancy SF 16,705,238 16,581,250 16,689,333 16,728,482 16,668,499
Growth Rate (%) 0.2% -0.7% 0.6% 0.2% -0.3%
Vacancy:
Class A 11.5% 11.4% 10.2% 10.0% 10.3%Class B 12.8% 15.1% 15.5% 15.0% 15.8%Class C 9.7% 9.8% 9.3% 9.5% 9.2%All Types 11.5% 12.2% 11.6% 11.4% 11.7%
Avg. Asking Rate (FS/Month)
Class A $2.62 $2.63 $2.62 $2.59 $2.61Class B $1.79 $1.80 $1.82 $1.82 $1.85Class C $1.38 $1.38 $1.39 $1.38 $1.39All Types $2.11 $2.10 $2.08 $2.07 $2.09
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 123,097 143,424 183,782 151,141 68,197Net Absorption 34,252 -123,988 108,083 39,149 -59,983YTD Net Absorption -255,624 -379,612 -271,529 39,149 -20,834Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
10.7%
11.1%10.7%
10.5% 10.3% 10.3%10.2%
11.7%11.5%
12.2%
11.6%11.4%
11.7%
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
9%
10%
10%
11%
11%
12%
12%
13%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Auburn / LincolnQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 0 0 0 0 0Class B 627,026 627,026 627,026 627,026 627,026Class C 731,710 731,710 731,710 731,710 731,710All Types 1,358,736 1,358,736 1,358,736 1,358,736 1,358,736
Direct Availabilities:
Class A 0 0 0 0 0Class B 125,568 129,663 134,995 131,179 102,203Class C 100,120 98,852 81,679 80,720 72,069All Types 225,688 228,515 216,674 211,899 174,272
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 0 0 0 0 0
Total Availables
Class A 0 0 0 0 0Class B 125,568 129,663 134,995 131,179 102,203Class C 100,120 98,852 81,679 80,720 72,069All Types 225,688 228,515 216,674 211,899 174,272
Total Occupancy SF 1,133,048 1,130,221 1,142,062 1,146,837 1,184,464
Growth Rate (%) -0.5% -0.2% 0.9% 0.4% 2.8%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 20.0% 20.7% 21.5% 20.9% 16.3%Class C 13.7% 13.5% 11.2% 11.0% 9.8%All Types 16.6% 16.8% 15.9% 15.6% 12.8%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $1.64 $1.63 $1.64 $1.64 $1.74Class C $1.08 $1.08 $1.09 $1.08 $1.09All Types $1.39 $1.39 $1.43 $1.43 $1.47
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 14,966 1,268 25,217 13,801 42,683Net Absorption -6,256 -2,827 11,841 4,775 37,627YTD Net Absorption -18,298 -21,125 -9,284 4,775 42,402
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
11.9% 12.5% 12.7% 12.4%13.4%
15.7% 15.3%16.1% 16.6% 16.8% 15.9% 15.6%
12.8%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
4%
8%
12%
16%
20%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Campus CommonsQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 0 0 0 0 0Class B 1,052,570 1,052,570 1,052,570 1,052,570 1,052,570Class C 168,577 168,577 168,577 168,577 168,577All Types 1,221,147 1,221,147 1,221,147 1,221,147 1,221,147
Direct Availabilities:
Class A 0 0 0 0 0Class B 232,978 229,254 223,997 237,064 227,858Class C 26,346 25,995 27,905 27,905 27,905All Types 259,324 255,249 251,902 264,969 255,763
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 0 0 0 0 0
Total Availables
Class A 0 0 0 0 0Class B 232,978 229,254 223,997 237,064 227,858Class C 26,346 25,995 27,905 27,905 27,905All Types 259,324 255,249 251,902 264,969 255,763
Total Occupancy SF 961,823 965,898 969,245 956,178 965,384
Growth Rate (%) 2.1% 0.3% 0.3% -1.1% 0.8%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 22.1% 21.8% 21.3% 22.5% 21.6%Class C 15.6% 15.4% 16.6% 16.6% 16.6%All Types 21.2% 20.9% 20.6% 21.7% 20.9%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $1.73 $1.74 $1.74 $1.77 $1.76Class C $1.62 $1.64 $1.64 $1.68 $1.67All Types $1.72 $1.73 $1.73 $1.76 $1.75
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 35,725 11,599 13,585 2,251 11,156Net Absorption 25,946 4,075 3,347 -13,067 9,206YTD Net Absorption 25,832 29,907 33,254 -13,067 -3,861Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
23.8% 23.4% 23.4% 23.9% 24.8% 23.5% 23.4% 23.4%21.2% 20.9% 20.6% 21.7% 20.9%
$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00
0%
5%
10%
15%
20%
25%
30%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Carmichael / Fair OaksQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 0 0 0 0 0Class B 437,190 437,190 412,190 412,190 412,190Class C 567,055 567,055 567,055 567,055 567,055All Types 1,004,245 1,004,245 979,245 979,245 979,245
Direct Availabilities:
Class A 0 0 0 0 0Class B 40,628 61,656 17,371 26,229 26,699Class C 79,932 73,460 60,119 68,969 64,789All Types 120,560 135,116 77,490 95,198 91,488
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 0 0 0 0 0
Total Availables
Class A 0 0 0 0 0Class B 40,628 61,656 17,371 26,229 26,699Class C 79,932 73,460 60,119 68,969 64,789All Types 120,560 135,116 77,490 95,198 91,488
Total Occupancy SF 883,685 869,129 901,755 884,047 887,757
Growth Rate (%) -0.7% -1.4% 5.9% -1.8% 0.4%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 9.3% 14.1% 4.2% 6.4% 6.5%Class C 14.1% 13.0% 10.6% 12.2% 11.4%All Types 12.0% 13.5% 7.9% 9.7% 9.3%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $1.28 $1.35 $1.28 $1.30 $1.29Class C $1.03 $1.02 $1.08 $1.19 $1.19All Types $1.11 $1.17 $1.12 $1.22 $1.22
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 10,818 15,787 37,428 700 16,840Net Absorption -6,832 -14,556 32,626 -17,708 3,710YTD Net Absorption 9,957 -4,599 28,027 -17,708 -13,998
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
12.4%13.3%
15.3% 15.1% 14.9%14.0%
13.0%11.3% 12.0%
13.5%
7.9%9.7% 9.3%
$0.00
$0.40
$0.80
$1.20
$1.60
0%
4%
8%
12%
16%
20%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Citrus Heights / OrangevaleQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 79,163 79,163 79,163 79,163 79,163Class B 557,340 557,340 557,340 557,340 557,430Class C 800,682 800,682 800,682 800,682 800,682All Types 1,437,185 1,437,185 1,437,185 1,437,185 1,437,275
Direct Availabilities:
Class A 0 0 0 0 0Class B 105,991 99,953 89,661 95,450 96,768Class C 96,230 86,837 91,336 94,372 98,616All Types 202,221 186,790 180,997 189,822 195,384
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 0 0 0 0 0
Total Availables
Class A 0 0 0 0 0Class B 105,991 99,953 89,661 95,450 96,768Class C 96,230 86,837 91,336 94,372 98,616All Types 202,221 186,790 180,997 189,822 195,384
Total Occupancy SF 1,234,964 1,250,395 1,256,188 1,247,363 1,241,891
Growth Rate (%) -0.2% 1.1% 0.4% -0.6% -0.4%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 19.0% 17.9% 16.1% 17.1% 17.4%Class C 12.0% 10.8% 11.4% 11.8% 12.3%All Types 14.1% 13.0% 12.6% 13.2% 13.6%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $1.62 $1.61 $1.73 $1.73 $1.72Class C $1.13 $1.11 $1.10 $1.06 $1.09All Types $1.39 $1.38 $1.41 $1.40 $1.40
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 10,478 16,813 21,154 6,425 4,302Net Absorption -2,450 15,431 5,793 -8,825 -5,472YTD Net Absorption -9,827 5,604 11,397 -8,825 -14,297
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
18.1% 18.9% 17.7%15.7% 15.0% 14.5%
13.4% 13.9% 14.1%13.0% 12.6% 13.2% 13.6%
$0.00
$0.40
$0.80
$1.20
$1.60
0%
4%
8%
12%
16%
20%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Davis / WoodlandQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 98,000 98,000 98,000 98,000 98,000Class B 970,981 1,012,981 1,012,981 1,012,981 1,012,981Class C 864,119 864,119 864,119 864,119 864,119All Types 1,933,100 1,975,100 1,975,100 1,975,100 1,975,100
Direct Availabilities:
Class A 22,574 22,574 22,574 23,438 23,438Class B 99,971 94,269 100,263 89,884 97,294Class C 41,317 46,217 33,196 31,511 40,187All Types 163,862 163,060 156,033 144,833 160,919
Sublease Availabilities:
Class A 0 0 0 0 0Class B 2,278 2,278 1,103 1,103 0Class C 0 0 0 0 0All Types 2,278 2,278 1,103 1,103 0
Total Availables
Class A 22,574 22,574 22,574 23,438 23,438Class B 102,249 96,547 101,366 90,987 97,294Class C 41,317 46,217 33,196 31,511 40,187All Types 166,140 165,338 157,136 145,936 160,919
Total Occupancy SF 1,766,960 1,809,762 1,817,964 1,829,164 1,814,181
Growth Rate (%) 1.3% 0.0% 0.4% 0.6% -0.8%
Vacancy:
Class A 23.0% 23.0% 23.0% 23.9% 23.9%Class B 10.5% 9.5% 10.0% 9.0% 9.6%Class C 4.8% 5.3% 3.8% 3.6% 4.7%All Types 8.6% 8.4% 8.0% 7.4% 8.1%
Avg. Asking Rate (FS/Month)
Class A $2.10 $2.10 $2.10 $2.10 $2.10Class B $1.72 $1.72 $1.69 $1.66 $1.69Class C $1.49 $1.43 $1.53 $1.51 $1.46All Types $1.71 $1.69 $1.72 $1.70 $1.69
New Construction:
Class A 0 0 0 0 0Class B 0 42,000 0 0 0Total A & B 0 42,000 0 0 0
Absorption Trend
Gross Absorption 41,952 49,060 23,647 23,591 30,500Net Absorption 25,745 42,802 8,202 11,200 -14,983YTD Net Absorption 42,643 85,445 93,647 11,200 -3,783
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
12.1%10.8% 10.8%
11.9% 12.4%11.2% 10.8%
9.9%8.6% 8.4% 8.0% 7.4%
8.1%
$1.55$1.60$1.65$1.70$1.75$1.80$1.85$1.90$1.95$2.00
0%
2%
4%
6%
8%
10%
12%
14%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
East SacramentoQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 0 0 0 0 0Class B 1,500,061 1,500,061 1,500,061 1,500,061 1,500,061Class C 340,435 340,435 340,435 340,435 340,435All Types 1,840,496 1,840,496 1,840,496 1,840,496 1,840,496
Direct Availabilities:
Class A 0 0 0 0 0Class B 165,278 169,145 168,281 168,989 164,916Class C 76,463 77,561 76,009 72,792 69,650All Types 241,741 246,706 244,290 241,781 234,566
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 0 0 0 0 0
Total Availables
Class A 0 0 0 0 0Class B 165,278 169,145 168,281 168,989 164,916Class C 76,463 77,561 76,009 72,792 69,650All Types 241,741 246,706 244,290 241,781 234,566
Total Occupancy SF 1,598,755 1,593,790 1,596,206 1,598,715 1,605,930
Growth Rate (%) 0.0% -0.3% 0.1% 0.1% 0.4%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 11.0% 11.3% 11.2% 11.3% 11.0%Class C 22.5% 22.8% 22.3% 21.4% 20.5%All Types 13.1% 13.4% 13.3% 13.1% 12.7%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $2.01 $2.01 $2.01 $2.23 $2.23Class C $1.17 $0.94 $0.94 $0.89 $0.90All Types $1.74 $1.67 $1.68 $1.83 $1.84
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 0 2,102 9,143 5,867 7,215Net Absorption 0 -4,965 2,416 2,509 7,215YTD Net Absorption -1,183 -6,148 -3,732 2,509 9,724
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
14.6%13.8% 13.7%
10.0% 10.2% 10.3%
13.1% 13.1% 13.1% 13.4% 13.3% 13.1% 12.7%
$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00
0%
4%
8%
12%
16%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
El Dorado HillsQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 136,566 136,566 136,566 136,566 136,566Class B 993,863 993,863 993,863 993,863 993,863Class C 516,001 516,001 516,001 516,001 516,001All Types 1,646,430 1,646,430 1,646,430 1,646,430 1,646,430
Direct Availabilities:
Class A 10,211 10,174 10,174 10,174 10,174Class B 286,705 276,572 260,891 243,273 235,648Class C 69,183 74,988 67,725 67,240 66,330All Types 366,099 361,734 338,790 320,687 312,152
Sublease Availabilities:
Class A 0 0 0 0 0Class B 12,207 12,207 12,207 12,207 12,207Class C 0 0 0 0 0All Types 12,207 12,207 12,207 12,207 12,207
Total Availables
Class A 10,211 10,174 10,174 10,174 10,174Class B 298,912 288,779 273,098 255,480 247,855Class C 69,183 74,988 67,725 67,240 66,330All Types 378,306 373,941 350,997 332,894 324,359
Total Occupancy SF 1,268,124 1,272,489 1,295,433 1,313,536 1,322,071
Growth Rate (%) 0.9% 0.3% 1.4% 1.1% 0.5%
Vacancy:
Class A 7.5% 7.4% 7.4% 7.4% 7.4%Class B 30.1% 29.1% 27.5% 25.7% 24.9%Class C 13.4% 14.5% 13.1% 13.0% 12.9%All Types 23.0% 22.7% 21.3% 20.2% 19.7%
Avg. Asking Rate (FS/Month)
Class A $1.59 $1.54 $1.62 $1.62 $1.60Class B $1.61 $1.54 $1.51 $1.50 $1.50Class C $1.36 $1.32 $1.31 $1.27 $1.31All Types $1.56 $1.50 $1.47 $1.46 $1.46
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 28,852 8,641 33,716 15,520 59,744Net Absorption 15,334 4,365 22,944 18,103 8,535YTD Net Absorption 1,478 5,843 28,787 18,103 26,638
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
20.3% 20.1%21.8% 21.7% 21.7% 22.6% 23.1% 23.9% 23.0% 22.7%
21.3% 20.2% 19.7%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
5%
10%
15%
20%
25%
30%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
FolsomQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 2,051,065 2,051,065 2,051,065 2,051,065 2,051,065Class B 2,167,366 2,167,366 2,167,366 2,167,366 2,189,226Class C 537,654 537,654 537,654 537,654 537,654All Types 4,756,085 4,756,085 4,756,085 4,756,085 4,777,945
Direct Availabilities:
Class A 213,748 211,546 188,342 164,872 146,048Class B 254,839 254,173 251,152 262,341 271,789Class C 25,385 78,385 78,787 77,090 110,736All Types 493,972 544,104 518,281 504,303 528,573
Sublease Availabilities:
Class A 0 0 0 0 8,815Class B 20,008 20,008 18,215 19,618 19,618Class C 0 0 0 0 0All Types 20,008 20,008 18,215 19,618 28,433
Total Availables
Class A 213,748 211,546 188,342 164,872 154,863Class B 274,847 274,181 269,367 281,959 291,407Class C 25,385 78,385 78,787 77,090 110,736All Types 513,980 564,112 536,496 523,921 557,006
Total Occupancy SF 4,242,105 4,191,973 4,219,589 4,232,164 4,220,939
Growth Rate (%) 0.5% -1.1% 0.6% 0.3% -0.7%
Vacancy:
Class A 10.4% 10.3% 9.2% 8.0% 7.6%Class B 12.7% 12.7% 12.4% 13.0% 13.3%Class C 4.7% 14.6% 14.7% 14.3% 20.6%All Types 10.8% 11.9% 11.3% 11.0% 11.7%
Avg. Asking Rate (FS/Month)
Class A $1.90 $1.90 $1.90 $1.93 $1.92Class B $1.66 $1.69 $1.70 $1.75 $1.76Class C $1.47 $1.46 $1.46 $1.46 $1.46All Types $1.75 $1.74 $1.73 $1.76 $1.74
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 21,860Total A & B 0 0 0 0 21,860
Absorption Trend
Gross Absorption 69,385 15,074 46,688 47,656 56,719Net Absorption 24,884 -50,132 27,616 12,575 -11,225YTD Net Absorption 48,976 -1,156 26,460 12,575 1,350
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
15.8%14.9%
13.7% 13.9% 13.1%12.2% 11.8% 11.3% 10.8%
11.9% 11.3% 11.0% 11.7%
$0.00$0.20$0.40$0.60$0.80$1.00$1.20$1.40$1.60$1.80$2.00
0%2%4%6%8%
10%12%14%16%18%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Highway 50 / Rancho CordovaQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 5,162,347 5,162,347 5,162,347 5,162,347 5,162,347Class B 9,500,400 9,500,400 9,500,400 9,536,480 9,536,480Class C 2,520,852 2,520,852 2,520,852 2,520,852 2,520,852All Types 17,183,599 17,183,599 17,183,599 17,219,679 17,219,679
Direct Availabilities:
Class A 501,679 397,268 431,454 440,584 460,553Class B 1,630,992 1,530,742 1,532,176 1,543,316 1,538,519Class C 455,510 489,612 482,896 474,349 436,788All Types 2,588,181 2,417,622 2,446,526 2,458,249 2,435,860
Sublease Availabilities:
Class A 106,615 87,789 88,755 87,789 72,789Class B 1,317 1,317 1,317 0 0Class C 0 0 0 0 0All Types 107,932 89,106 90,072 87,789 72,789
Total Availables
Class A 608,294 485,057 520,209 528,373 533,342Class B 1,632,309 1,532,059 1,533,493 1,543,316 1,538,519Class C 455,510 489,612 482,896 474,349 436,788All Types 2,696,113 2,506,728 2,536,598 2,546,038 2,508,649
Total Occupancy SF 14,487,486 14,676,871 14,647,001 14,673,641 14,711,030
Growth Rate (%) 0.0% 1.1% -0.2% -0.1% 0.2%
Vacancy:
Class A 11.8% 9.4% 10.1% 10.2% 10.3%Class B 17.2% 16.1% 16.1% 16.2% 16.1%Class C 18.1% 19.4% 19.2% 18.8% 17.3%All Types 15.7% 14.6% 14.8% 14.8% 14.6%
Avg. Asking Rate (FS/Month)
Class A $1.82 $1.82 $1.80 $1.78 $1.80Class B $1.56 $1.55 $1.55 $1.52 $1.55Class C $1.09 $1.15 $1.14 $1.20 $1.14All Types $1.54 $1.52 $1.52 $1.51 $1.53
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 142,402 308,796 108,711 79,738 114,611Net Absorption -5,221 189,385 -29,870 26,640 37,389YTD Net Absorption 132,311 321,696 291,826 26,640 64,029
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
17.0%16.0%
17.5% 18.1% 17.9% 17.3% 16.5% 15.7% 15.7%14.6% 14.8% 14.8% 14.6%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%2%4%6%8%
10%12%14%16%18%20%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Howe Ave / Fulton AveQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 186,306 186,306 186,306 186,306 186,306Class B 1,228,671 1,228,671 1,228,671 1,228,671 1,228,671Class C 1,044,089 1,044,089 1,044,089 1,044,089 1,044,089All Types 2,459,066 2,459,066 2,459,066 2,459,066 2,459,066
Direct Availabilities:
Class A 43,898 43,898 43,898 63,150 69,972Class B 339,231 336,159 335,923 340,525 334,258Class C 201,520 188,331 188,473 213,290 216,908All Types 584,649 568,388 568,294 616,965 621,138
Sublease Availabilities:
Class A 0 0 0 0 0Class B 4,202 4,202 4,202 0 0Class C 0 0 0 0 0All Types 4,202 4,202 4,202 0 0
Total Availables
Class A 43,898 43,898 43,898 63,150 69,972Class B 343,433 340,361 340,125 340,525 334,258Class C 201,520 188,331 188,473 213,290 216,908All Types 588,851 572,590 572,496 616,965 621,138
Total Occupancy SF 1,870,215 1,886,476 1,886,570 1,842,101 1,837,928
Growth Rate (%) -11.6% 0.7% 0.0% -1.8% -0.2%
Vacancy:
Class A 23.6% 23.6% 23.6% 33.9% 37.6%Class B 28.0% 27.7% 27.7% 27.7% 27.2%Class C 19.3% 18.0% 18.1% 20.4% 20.8%All Types 23.9% 23.3% 23.3% 25.1% 25.3%
Avg. Asking Rate (FS/Month)
Class A $1.76 $1.76 $1.76 $1.85 $1.85Class B $1.49 $1.51 $1.49 $1.48 $1.51Class C $1.56 $1.54 $1.53 $1.50 $1.46All Types $1.53 $1.54 $1.52 $1.52 $1.53
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 34,635 38,787 16,995 16,941 18,021Net Absorption -286,204 16,261 94 -44,469 -4,173YTD Net Absorption 3,576 19,837 19,931 -44,469 -48,642
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
22.0% 22.2%24.1% 23.6% 23.1% 23.0% 23.5%
12.3%
23.9% 23.3% 23.3%25.1% 25.3%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
5%
10%
15%
20%
25%
30%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Midtown SacramentoQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 571,819 571,819 571,819 571,819 571,819Class B 1,940,640 1,940,640 1,940,640 1,940,640 1,940,640Class C 1,192,609 1,192,609 1,192,609 1,192,609 1,192,609All Types 3,705,068 3,705,068 3,705,068 3,705,068 3,705,068
Direct Availabilities:
Class A 16,688 3,625 3,625 8,229 8,229Class B 170,419 92,436 94,475 97,352 101,452Class C 141,894 154,233 154,604 151,995 127,422All Types 329,001 250,294 252,704 257,576 237,103
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 10,441 0Class C 0 0 0 0 0All Types 0 0 0 10,441 0
Total Availables
Class A 16,688 3,625 3,625 8,229 8,229Class B 170,419 92,436 94,475 107,793 101,452Class C 141,894 154,233 154,604 151,995 127,422All Types 329,001 250,294 252,704 268,017 237,103
Total Occupancy SF 3,376,067 3,454,774 3,452,364 3,437,051 3,467,965
Growth Rate (%) -0.4% 2.1% -0.1% -0.4% 0.8%
Vacancy:
Class A 2.9% 0.6% 0.6% 1.4% 1.4%Class B 8.8% 4.8% 4.9% 5.6% 5.2%Class C 11.9% 12.9% 13.0% 12.7% 10.7%All Types 8.9% 6.8% 6.8% 7.2% 6.4%
Avg. Asking Rate (FS/Month)
Class A $2.25 $2.25 $2.25 $2.37 $2.75Class B $2.01 $1.97 $1.99 $1.99 $1.96Class C $1.68 $1.66 $1.50 $1.50 $1.49All Types $1.88 $1.78 $1.69 $1.72 $1.73
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 6,801 102,188 6,763 18,857 53,455Net Absorption -13,376 78,707 -2,410 -15,313 30,914YTD Net Absorption -29,769 48,938 46,528 -15,313 15,601
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
8.5% 8.5%7.8% 8.1% 8.0% 8.1% 8.1% 8.5% 8.9%
6.8% 6.8% 7.2%6.4%
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
0%1%2%3%4%5%6%7%8%9%
10%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Natomas / NorthgateQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 3,622,022 3,622,022 3,622,022 3,622,022 3,622,022Class B 2,233,296 2,233,296 2,233,296 2,233,296 2,233,296Class C 551,045 551,045 551,045 551,045 551,045All Types 6,406,363 6,406,363 6,406,363 6,406,363 6,406,363
Direct Availabilities:
Class A 749,428 753,910 767,882 779,890 810,416Class B 466,133 443,445 444,089 440,058 443,081Class C 147,449 147,499 147,499 147,669 147,669All Types 1,363,010 1,344,854 1,359,470 1,367,617 1,401,166
Sublease Availabilities:
Class A 2,219 2,219 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 2,219 2,219 0 0 0
Total Availables
Class A 751,647 756,129 767,882 779,890 810,416Class B 466,133 443,445 444,089 440,058 443,081Class C 147,449 147,499 147,499 147,669 147,669All Types 1,365,229 1,347,073 1,359,470 1,367,617 1,401,166
Total Occupancy SF 5,041,134 5,059,290 5,046,893 5,038,746 5,005,197
Growth Rate (%) 1.0% 0.3% -0.2% -0.1% -0.5%
Vacancy:
Class A 20.8% 20.9% 21.2% 21.5% 22.4%Class B 20.9% 19.9% 19.9% 19.7% 19.8%Class C 26.8% 26.8% 26.8% 26.8% 26.8%All Types 21.3% 21.0% 21.2% 21.3% 21.9%
Avg. Asking Rate (FS/Month)
Class A $1.92 $1.91 $1.87 $1.89 $1.91Class B $1.62 $1.60 $1.60 $1.59 $1.57Class C $1.01 $1.04 $1.04 $1.04 $1.04All Types $1.72 $1.71 $1.69 $1.70 $1.71
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 187,864 64,866 72,256 36,421 69,946Net Absorption 62,645 18,156 -12,397 -8,147 -33,549YTD Net Absorption -135,116 -116,960 -129,357 -8,147 -41,696
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
24.7% 23.5% 23.2% 24.2% 24.1% 23.5%
19.2%22.3% 21.3% 21.0% 21.2% 21.3% 21.9%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
5%
10%
15%
20%
25%
30%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Point WestQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 858,620 858,620 858,620 858,620 858,620Class B 1,173,945 1,173,945 1,173,945 1,187,285 1,187,285Class C 660,735 660,735 660,735 660,735 660,735All Types 2,693,300 2,693,300 2,693,300 2,706,640 2,706,640
Direct Availabilities:
Class A 247,133 206,283 211,779 204,330 160,099Class B 361,385 358,419 361,162 367,476 252,109Class C 89,792 151,936 146,990 146,990 148,875All Types 698,310 716,638 719,931 718,796 561,083
Sublease Availabilities:
Class A 0 0 0 0 3,000Class B 13,697 13,697 13,697 13,697 0Class C 0 0 0 0 0All Types 13,697 13,697 13,697 13,697 3,000
Total Availables
Class A 247,133 206,283 211,779 204,330 163,099Class B 375,082 372,116 374,859 381,173 252,109Class C 89,792 151,936 146,990 146,990 148,875All Types 712,007 730,335 733,628 732,493 564,083
Total Occupancy SF 1,981,293 1,962,965 1,959,672 1,974,147 2,142,557
Growth Rate (%) -0.1% -0.7% -0.1% 0.0% 6.2%
Vacancy:
Class A 28.8% 24.0% 24.7% 23.8% 19.0%Class B 32.0% 31.7% 31.9% 32.1% 21.2%Class C 13.6% 23.0% 22.2% 22.2% 22.5%All Types 26.4% 27.1% 27.2% 27.1% 20.8%
Avg. Asking Rate (FS/Month)
Class A $1.85 $1.85 $1.85 $1.85 $1.84Class B $1.67 $1.66 $1.67 $1.66 $1.66Class C $1.06 $1.44 $1.44 $1.45 $1.46All Types $1.66 $1.67 $1.68 $1.67 $1.66
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 13,340 0Total A & B 0 0 0 13,340 0
Absorption Trend
Gross Absorption 9,741 57,637 15,749 40,537 210,073Net Absorption -1,695 -18,328 -3,293 14,475 168,410YTD Net Absorption 72,284 53,956 50,663 14,475 182,885
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
25.7%
30.9% 30.5%32.2% 31.3%
29.5% 29.1%26.4% 26.4% 27.1% 27.2% 27.1%
20.8%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
5%
10%
15%
20%
25%
30%
35%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Rio Linda / North HighlandsQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 0 0 0 0 0Class B 249,982 249,982 249,982 249,982 249,982Class C 759,098 759,098 759,098 759,098 759,098All Types 1,009,080 1,009,080 1,009,080 1,009,080 1,009,080
Direct Availabilities:
Class A 0 0 0 0 0Class B 29,766 29,766 29,766 31,024 31,024Class C 283,927 283,927 271,831 271,831 271,831All Types 313,693 313,693 301,597 302,855 302,855
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 0 0 0 0 0
Total Availables
Class A 0 0 0 0 0Class B 29,766 29,766 29,766 31,024 31,024Class C 283,927 283,927 271,831 271,831 271,831All Types 313,693 313,693 301,597 302,855 302,855
Total Occupancy SF 695,387 695,387 707,483 706,225 706,225
Growth Rate (%) 0.0% 0.0% 1.2% -0.1% 0.0%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 11.9% 11.9% 11.9% 12.4% 12.4%Class C 37.4% 37.4% 35.8% 35.8% 35.8%All Types 31.1% 31.1% 29.9% 30.0% 30.0%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $1.41 $1.41 $1.34 $1.24 $1.17Class C $1.61 $1.61 $1.61 $1.61 $1.63All Types $1.59 $1.59 $1.58 $1.57 $1.58
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 0 0 0 297 0Net Absorption 0 0 12,096 -1,258 0YTD Net Absorption 10,126 10,126 22,222 -1,258 -1,258
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
39.4%42.0% 40.2% 40.5% 41.4% 40.8%
32.1% 31.1% 31.1% 31.1% 29.9% 30.0% 30.0%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
10%
20%
30%
40%
50%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Roseville / RocklinQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 3,232,228 3,283,397 3,283,397 3,283,397 3,283,397Class B 5,598,851 5,598,851 5,598,851 5,598,851 5,598,851Class C 1,465,869 1,465,869 1,465,869 1,465,869 1,465,869All Types 10,296,948 10,348,117 10,348,117 10,348,117 10,348,117
Direct Availabilities:
Class A 797,117 789,881 803,797 740,130 644,255Class B 1,157,342 1,102,357 1,082,618 1,039,415 1,009,363Class C 216,894 210,905 208,464 200,398 207,821All Types 2,171,353 2,103,143 2,094,879 1,979,943 1,861,439
Sublease Availabilities:
Class A 6,199 2,688 3,025 2,400 0Class B 1,616 6,153 5,410 3,896 3,896Class C 0 0 0 0 0All Types 7,815 8,841 8,435 6,296 3,896
Total Availables
Class A 803,316 792,569 806,822 742,530 644,255Class B 1,158,958 1,108,510 1,088,028 1,043,311 1,013,259Class C 216,894 210,905 208,464 200,398 207,821All Types 2,179,168 2,111,984 2,103,314 1,986,239 1,865,335
Total Occupancy SF 8,117,780 8,236,133 8,244,803 8,361,878 8,482,782
Growth Rate (%) 0.5% 0.6% 0.1% 1.1% 1.2%
Vacancy:
Class A 24.9% 24.1% 24.6% 22.6% 19.6%Class B 20.7% 19.8% 19.4% 18.6% 18.1%Class C 14.8% 14.4% 14.2% 13.7% 14.2%All Types 21.2% 20.4% 20.3% 19.2% 18.0%
Avg. Asking Rate (FS/Month)
Class A $1.73 $1.71 $1.80 $1.81 $1.82Class B $1.60 $1.60 $1.61 $1.60 $1.62Class C $1.22 $1.22 $1.23 $1.27 $1.30All Types $1.61 $1.60 $1.65 $1.65 $1.65
New Construction:
Class A 0 51,169 0 0 0Class B 0 0 0 0 0Total A & B 0 51,169 0 0 0
Absorption Trend
Gross Absorption 258,755 224,802 142,010 198,280 212,637Net Absorption 52,715 118,353 8,670 117,075 120,904YTD Net Absorption 52,715 303,076 311,746 117,075 237,979
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
29.8% 29.4% 27.8% 27.0% 26.9% 26.3%23.0% 21.7% 21.2% 20.4% 20.3% 19.2% 18.0%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
5%
10%
15%
20%
25%
30%
35%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
South SacramentoQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 0 0 0 0 0Class B 1,342,672 1,342,672 1,342,672 1,355,248 1,355,248Class C 1,678,716 1,678,716 1,678,716 1,678,716 1,678,716All Types 3,021,388 3,021,388 3,021,388 3,033,964 3,033,964
Direct Availabilities:
Class A 0 0 0 0 0Class B 192,423 182,766 198,084 204,414 209,841Class C 331,070 246,109 237,649 232,313 229,124All Types 523,493 428,875 435,733 436,727 438,965
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 0 0 0 0 0
Total Availables
Class A 0 0 0 0 0Class B 192,423 182,766 198,084 204,414 209,841Class C 331,070 246,109 237,649 232,313 229,124All Types 523,493 428,875 435,733 436,727 438,965
Total Occupancy SF 2,497,895 2,592,513 2,585,655 2,597,237 2,594,999
Growth Rate (%) 0.0% 3.1% -0.2% 0.0% -0.1%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 14.3% 13.6% 14.8% 15.1% 15.5%Class C 19.7% 14.7% 14.2% 13.8% 13.6%All Types 17.3% 14.2% 14.4% 14.4% 14.5%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $1.52 $1.57 $1.49 $1.49 $1.44Class C $1.24 $1.23 $1.23 $1.25 $1.27All Types $1.34 $1.37 $1.35 $1.36 $1.35
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 12,576 0Total A & B 0 0 0 12,576 0
Absorption Trend
Gross Absorption 63,695 187,823 41,060 21,798 40,248Net Absorption -1,054 94,618 -6,858 11,582 -2,238YTD Net Absorption -58,079 36,539 29,681 11,582 9,344
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
14.0% 14.0%16.7%
19.6% 18.9% 17.8%16.5% 17.3% 17.3%
14.2% 14.4% 14.4% 14.5%
$0.00
$0.40
$0.80
$1.20
$1.60
0%
5%
10%
15%
20%
25%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Watt AveQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 0 0 0 0 0Class B 1,102,692 1,102,692 1,102,692 1,102,692 1,102,692Class C 1,235,761 1,235,761 1,235,761 1,220,761 1,220,761All Types 2,338,453 2,338,453 2,338,453 2,323,453 2,323,453
Direct Availabilities:
Class A 0 0 0 0 0Class B 108,106 104,651 87,638 92,148 96,900Class C 207,461 205,792 216,422 200,483 197,881All Types 315,567 310,443 304,060 292,631 294,781
Sublease Availabilities:
Class A 0 0 0 0 0Class B 0 0 0 0 0Class C 2,903 1,891 1,891 1,891 1,891All Types 2,903 1,891 1,891 1,891 1,891
Total Availables
Class A 0 0 0 0 0Class B 108,106 104,651 87,638 92,148 96,900Class C 210,364 207,683 218,313 202,374 199,772All Types 318,470 312,334 305,951 294,522 296,672
Total Occupancy SF 2,019,983 2,026,119 2,032,502 2,028,931 2,026,781
Growth Rate (%) 1.5% 0.3% 0.3% 0.5% -0.1%
Vacancy:
Class A 0.0% 0.0% 0.0% 0.0% 0.0%Class B 9.8% 9.5% 7.9% 8.4% 8.8%Class C 17.0% 16.8% 17.7% 16.6% 16.4%All Types 13.6% 13.4% 13.1% 12.7% 12.8%
Avg. Asking Rate (FS/Month)
Class A $0.00 $0.00 $0.00 $0.00 $0.00Class B $1.43 $1.43 $1.55 $1.56 $1.53Class C $1.24 $1.24 $1.26 $1.28 $1.32All Types $1.30 $1.30 $1.34 $1.37 $1.39
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 9,786 9,497 29,518 2,688 7,158Net Absorption -15,108 6,136 6,383 -3,571 -2,150YTD Net Absorption -23,215 -17,079 -10,696 -3,571 -5,721
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
11.3%
14.5% 14.4% 14.9% 14.7% 14.5% 14.4% 14.8%13.6% 13.4% 13.1% 12.7% 12.8%
$0.00
$0.40
$0.80
$1.20
$1.60
0%
4%
8%
12%
16%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
West SacramentoQuarter Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Building Base:
Class A 833,792 833,792 833,792 833,792 833,792Class B 732,441 732,441 732,441 732,441 732,441Class C 417,093 417,093 417,093 417,093 417,093All Types 1,983,326 1,983,326 1,983,326 1,983,326 1,983,326
Direct Availabilities:
Class A 23,784 23,784 23,784 23,784 80,472Class B 129,532 129,532 134,831 132,828 130,738Class C 36,739 36,739 31,684 32,366 30,281All Types 190,055 190,055 190,299 188,978 241,491
Sublease Availabilities:
Class A 21,272 21,272 21,272 21,272 21,272Class B 0 0 0 0 0Class C 0 0 0 0 0All Types 21,272 21,272 21,272 21,272 21,272
Total Availables
Class A 45,056 45,056 45,056 45,056 101,744Class B 129,532 129,532 134,831 132,828 130,738Class C 36,739 36,739 31,684 32,366 30,281All Types 211,327 211,327 211,571 210,250 262,763
Total Occupancy SF 1,771,999 1,771,999 1,771,755 1,773,076 1,720,563
Growth Rate (%) 1.4% 0.0% 0.0% 0.1% -2.6%
Vacancy:
Class A 5.4% 5.4% 5.4% 5.4% 12.2%Class B 17.7% 17.7% 18.4% 18.1% 17.8%Class C 8.8% 8.8% 7.6% 7.8% 7.3%All Types 10.7% 10.7% 10.7% 10.6% 13.2%
Avg. Asking Rate (FS/Month)
Class A $1.70 $1.70 $1.72 $1.72 $1.72Class B $1.73 $1.73 $1.72 $1.68 $1.68Class C $1.47 $1.48 $1.48 $1.46 $1.45All Types $1.68 $1.68 $1.68 $1.65 $1.67
New Construction:
Class A 0 0 0 0 0Class B 0 0 0 0 0Total A & B 0 0 0 0 0
Absorption Trend
Gross Absorption 38,625 0 7,189 8,317 4,175Net Absorption 27,302 0 -244 1,321 -52,513YTD Net Absorption 17,353 17,353 17,109 1,321 -51,192
Vacancy & Asking Rate Trend
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Office Market ReportSacramento Valley • Second Quarter 2014
10.3% 9.9% 9.9% 9.9% 10.2% 10.2%11.5% 12.0%
10.7% 10.7% 10.7% 10.6%
13.2%
$0.00
$0.40
$0.80
$1.20
$1.60
$2.00
0%
2%
4%
6%
8%
10%
12%
14%
Q2-11 Q3-11 Q4-11 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 Q3-13 Q4-13 Q1-14 Q2-14
Vacancy Avg. Asking Rate (FS)
Disclaimer: The information contained herein while not guaranteed has been secured by sources we deem reliable. All information should be verified prior to lease or sale.
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Office Report
Sacramento Valley
Definitions
Class A ProductSteel and concrete construction, built after 1980, quality tenants, excellent amenities & premium rents.
Class B ProductBuilt after 1960, fair to good finishes & wide range of tenants.
Total Building BaseIncludes Class A, Class B, Class C and Suburban Garden Office buildings over 10,000 square feet.
Direct AvailabilitiesTotal square footage being marketed for lease by landlord available within 90 days. This may include availabilities with pending leases.
Sublease Availabilities Total square footage being marketed for lease by sublessor.
VacancyTotal available square footage (direct & sublease) divided by Total Building Base.
BTS (Build-to-Suit)A method of leasing property whereby the landlord builds to suit the tenant (according to tenant’s specifications). The cost of construction is figured into the rental amount of the lease, which is usually for a long term.
New Spec (Speculative)A building constructed for lease or sale but without having a tenant or buyer before construction begins.
Gross AbsorptionTotal leasing and user sale activity in the marketplace in a given time period.
Net AbsorptionChange in occupied building square footage in a given time period.
Avg. Asking RateWeighted Average Full Service Rate (by available square footage) of available spaces with NNN and Gross rates converted to Full Service rates.
Avg. Time on MarketWeighted Average Time on market (by available square footage) of available spaces reflected in months.
Availables by SizeNumber of current available spaces for lease in the given size.
Historical ContinuityCassidy Turley maintains a building by building historical record. Comparing previous reports to this report may show different building size numbers and statistics. Changes are caused by reclassification of buildings and revised building sizes. Historical comparisons should be made from this report only as Cassidy Turley adjusts the historical record accordingly.
SourceData is tracked and tallied from information provided by The Costar Group.
Report Published By:
Cassidy Turley Sacramento520 Capitol Mall Suite 500Sacramento, CA 95814Tel 916 375 1500Fax 916 376 8840
49
88
WoodlandNorth Highlands
Elk Grove
Davis
Rio Linda
Fair Oaks
Arden
Arcade
Laguna West
Florin
CitrusHeights
WestSacramento
Plymouth
Roseville
Parkway
FolsomOrangevale
Loomis
New Castle
Rocklin
AuburnLincoln
ShingleSprings
Placerville
El Dorado Hills
Camino
RanchoCordova
Winters
Vacaville
Carmichael1
2
13
14
11
12
10
8
97
5SACRAMENTO
4
3 6
Davis/Woodland
Natomas/Northgate
West Sacramento
Downtown
East Sacramento
South Sacramento
Power Inn
Elk Grove/Laguna
Mather
Sunrise
Folsom/El Dorado Hills
McClellan
Roseville/Rocklin
Auburn/New Castle
LEGEND1
2
3
4
5
6
7
8
9
10
11
12
13
14
80
80
80
5
505
5
99
99
70
65
50
49
