Business Journal: Office Leasing Up
New-home construction has slowed, but office projects continue to attract developers and tenants.
Tuesday, November 7, 2006
More companies are leasing office space in the Sacramento area, that’s good news for the region’s economy especially as the housing market stalls. About 478,000 square feet of office space was leased to new tenants in the third quarter, double the amount of space handled in the past two quarters combined. It was the most activity since the fourth quarter of 2005, and the third-best quarter in more than two years, according to a recent survey. That’s great news for commercial brokers and developers, especially with almost 3 million square feet of office space currently under construction in the region, including about 730,000 square feet in Rocklin. But some brokers say as the additional office space becomes available, the 14 percent vacancy rate will rise. This is Ron Trujillo with the Business Journal.