Business Journal: Office Market Rebounds
Office leasing in the Sacramento area is crawling back up, similar to a year ago.
Monday, July 21, 2008
Sacramento’s hard-hit office market rebounded this quarter, after three consecutive quarters of declining or flat leasing. The market’s resiliency during an economic downturn could be the result of discounts offered by landlords enticing users to expand -- or just to stay. Last quarter was one of the worst on record for office leasing, with tenants overall leaving about 247,000 square feet. Sources say a lot of the deals being inked are short-term, relecting uncertainty about the market. The largest lease during the quarter came from the state. It signed a deal last month to consolidate the headquarters of the California Highway Patrol into a complex of buildings off Richards Boulevard. That deal was for 285,000 square feet.