Home Front

A blog about the economy and the Sacramento-area real estate market.

October 23, 2009
A sobering outlook for Sacramento office market

MONDAY UPDATE: Here's how office markets are faring in cities across the nation.

"We were the last to feel the pain and we will be the last to feel the recovery."

Natomas-East5.jpgSo ends this sobering third-quarter look at the capital region's office market published in recent days by commercial real estate brokers at Colliers International in Sacramento.

 As went the residential market and then the stores and shopping centers, now goes offices into the giant sucking sound of this Great Recession.

  Office developers just opened a brand new beautiful Gateway Towers alongside I-5 in Natomas. But it opened without tenants. (Leases are in the works, says the report). Yes, the  new LEED-certified tower boasts a great carbon footprint. But people now are more interested in cheap rent, says the report.

A few highlights: Downtown Sacrament remains the best off in terms of the office market, having the state as a major player. But the suburbs are apparently getting killed. There's a 42 percent vacancy rate now in the Roseville-Rocklin corridor for the best Class A office space. Folsom has a lot of empty space and so does Natomas.

Altogether, Colliers counts 14.4 million square feet of vacant office space in the region - with rents falling and that putting pressure on bottom lines and bank loans. That's going to spark more defaults and foreclosed office buildings as the economy in this region continues to remain very soft, possibly well into 2012.

 Last into the tank and last out. That's the short version for office space. To read 14 pages of the long version click on the link above.

- Natomas Gateway Towers photo courtesy of Aguer Havelock Associates


About Comments

Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and send him a direct message.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to feedback@sacbee.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.

hide comments

On October 14, The Sacramento Bee will temporarily remove commenting from sacbee.com. While we design the upgrade, we encourage you to tell us what you like and don't like about commenting on sacbee.com and other websites. We've heard from hundreds of you already and we're listening. Please continue to add your thoughts and questions here. We also encourage you to write Letters to the Editor on this and other topics.

Jim Wasserman on Twitter

Follow "jimwasserman" on Twitter

October 2013

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31