CBRE

FIGURES|SACRAMENTOOFFICE|Q42025

Vacancyedgeshigherdespiteincreaseinofficedemand

18.7%

VacancyRate

Note:Arrowsindicatechangefrompreviousquarter.

(65.9K)

SFNetAbsorption

N/A

ConstructionCompletions

▲$2.15

Full-ServiceGrossAvg,AskingLeaseRate

200K

OfficeUsingEmployment

GreaterSacramentoRegion

MARKETHIGHLIGHTS

?TheoverallnetabsorptionfortheSacramentoofficemarketclosedQ42025atnegative65,913sq.ft.comparedtonegative122,009sq.ft.inQ32025.

NetAbsorptionSF

?TotaltenantsinthemarketremainedhealthyduringQ42025withatotalof1.5millionsq.ft.ofactiveandpendingofficetenantrequirements.

?LeasingactivityremainedstableinQ42025,with278,000sq.ft.ofgrossleasing,followingastrongQ32025totalof384,000sq.ft.

?Q42025officesalestotaled$78.8M;thetop2wereowner-userdeals:520CapitolMall($22.3M),3000LSt($4.85M),andaredevelopmentdealat400UniversityAve($4.28M).

?Sacramento’slaborforcestoodat1.16Mwith1.10MemployedatthecloseofQ42025.The

unemploymentrateclosedthequarterat5.3%,a20-basis-point(bps)increaseyear-over-year(YoY)and2bpshigherthanthepreviousquarter.Officeusingemploymentincreasedsincethepreviousquarterto200,000jobsatthecloseofQ42025.

FIGURE1:Vacancy&NetAbsorptionTrend

25%

800,000

NetAbsorptionVacancy

600,000

20%

400,000

Vacancy

15%

10%

200,000

0

-200,000

-400,000

5%

-600,000

0%

-800,000

201420152016201720182019202020212022202320242025

Source:CBREResearch,Q42025

1CBRERESEARCH?2026CBRE,INC.

FIGURES|SACRAMENTOOFFICE|Q42025

2CBRERESEARCH?2026CBRE,INC.

OFFICEOVERVIEW

LeasingactivityintheSacramentoofficemarketremainedresilientinQ42025,totaling248,000sq.ft.acrossallsectors.The

professionalservicessectorwasthemostactiveinQ42025,contributingover84,593sq.ft.ofnewandrenewedspace.ThelargestdealofthequarterwasCGITechnologies’21,290-sq.-ft.

renewalat11050WhiteRockRdinRanchoCordova,whileKimley-HornandAssociatessignedanewleaseof13,018sq.ft.at2251

DouglasBlvdinRoseville.

Despitethesetransactions,overallmarketfundamentalssoftened.Sacramentoclosedtheyearwith52.2millionsq.ft.ofoffice

inventoryandpostednegativenetabsorptionof65,913sq.ft.inQ4,nudgingvacancyfrom18.6%to18.7%.Submarketperformance

varied:SouthNatomasrecordedthelargestnegativenetabsorptionat-27,624sq.ft.,whileRoseville/Rocklinledwith86,114sq.ft.of

positiveabsorption.Themarkethasexperiencedongoing

contraction,withthemostrecenttwoyearspostingnegativenetabsorption:-466,656sq.ft.in2024and-651,297sq.ft.in2025.

Rentalratesremainedrelativelystable,astheoverallaverageaskingleaserateincreasedslightlyfrom$2.14to$2.15persquarefootonamonthly,full-service,directbasis(FSG)quarter-over-quarter.

Downtowncontinuedtocommandthehighestrentsat$2.98FSG,whileClassAspaceaveraged$2.49FSGregion-wide.

TenantdemandremainedrobustinQ42025,ledbythehealthcaresector,followedbygovernmentandprofessionalservices.Overallmarketactivitywashealthy,withactiveofficerequirementstotalingapproximately1.5millionsquarefeet,upfrom1.3millionsquarefeetinQ32025.

Lookingahead,evenasofficeutilizationimproves,theSacramentoofficemarketcontinuestofaceuncertaintyaroundthetimingofnewgovernmentleasingactivity,whileoveralldemandforadditional

officespaceremainssubdued.

FIGURE2:SubmarketStatistics

Submarket

NetRentableArea

TotalVacancy(%)

TotalAvailability(%)

Q4NetAbsorption

YTDNetAbsorption

Average Direct AskingRateFSG($)

CampusCommons

1,298,573

11.7%

13.9

(5,813)

(24,657)

2.22

Carmichael/FairOaks

396,335

4.2%

7.8

0

(5,772)

1.77

CitrusHeights/Orangevale

1,021,586

19.1%

20.0

4,525

(11,800)

1.35

EastSacramento

930,092

6.7%

8.7

(3,729)

(10,815)

2.41

ElkGrove/Galt

1,107,419

5.3%

7.9

(20,797)

(16,532)

2.49

Folsom

2,732,798

14.4%

21.6

(17,730)

(31,775)

2.29

HoweAvenue/FultonAvenue

2,075,021

17.1%

19.7

(13,267)

(33,006)

1.75

Hwy50Corridor

11,351,544

27.0%

30.8

(23,053)

(119,214)

1.74

Midtown

1,333,806

18.3%

23.1

(6,548)

(16,928)

2.44

Northgate/Natomas

2,771,911

15.8%

35.6

(8,069)

(19,841)

1.79

PointWest/TributeRd

2,085,245

22.9%

27.8

(16,293)

(89,199)

1.98

Roseville/Rocklin

7,568,486

14.1%

17.1

86,114

58,982

2.12

SouthNatomas

3,302,178

25.1%

36.6

(27,634)

(167,724)

2.21

SouthSacramento

1,841,310

12.1%

15.3

6,120

(426)

1.64

WattAve/AuburnBlvd

1,338,049

19.8%

22.6

(12,078)

(23,906)

1.57

WestSacramento

1,312,861

4.8%

5.5

0

88,155

2.51

Downtown

9,689,710

19.2

24.8

(7,661)

88,155

2.98

Suburban

42,467,214

18.6

23.8

(366,206)

(424,458)

2.08

Sacramento

52,156,924

18.7

24.0

(65,913)

(651,297)

2.15

Source:CBREResearch,Q42025

3CBRERESEARCH?2026CBRE,INC.

FIGURE3:NotableLeaseTransactionsQ42025

TenantAddress

SFLeased

Type

CGITechnologies

11050WhiteRock

Rd,RanchoCordova

21,290

Renewal

Confidential

9324WStocktonBlvd,ElkGrove

16,135

NewLease

Kimley-HornandAssociates

2251DouglasBlvd,Roseville

13,018

NewLease

Source:CBREResearch,Q42025

FIGURE4:NotableSaleTransactionsQ42025

BuyerAddress

SaleSize(SF)

SalePrice

CaliforniaHousingFinanceAgency

520CapitolMall,Sacramento

80,752

$22.3M

SutterMedicalFoundation

3000LSt,Sacramento

22,164

$4.85M

Bardis&Miry

DevelopmentLLC

400UniversityAve,

Sacramento

16,997

$4.28M

Source:CBREResearch,Q42025

FIGURE5:LeaseRates

AskingRate

($/SF)ClassAClassB

$2.70

$2.50

$2.30

$2.10

$1.90

$1.70

2.49

2.00

Q4

2023

Q1

2024

Q2

2024

Q4

2024

Q1

2025

Q2

2025

Q3

2025

Q4

2025

Q3

2024

Source:CBREResearch,Q42025

FIGURE6:Vacancy&Availability

(%)

Availability%

TotalVacancy%

30

24.00

24

18

18.70

12

6

Q3

2024

Q4

2024

Q1

2025

Q2

2025

Q3

2025

Q4

2025

Q4Q1Q2202320242024

Source:CBREResearch,Q42025

FIGURE7:Top10LeasesoftheQuarterbyIndustry

14%

ProfessionalServices

15%

0%

120KSQ.FT.

Government

HealthCare

71%

Technology

Source:CBREResearch,Q42025

FIGURE8:Top10LeasesbySize

20%

15K+SF

120KSQ.FT.

10K-15KSF

50%

5K-10KSF

30%

<5KSF

Source:CBREResearch,Q42025

SubmarketMap

71Downtown

72Midtown

73WestSacramento

74SouthSacramento

75EastSacramento

77HoweAve/FultonAve

78Natomas/Northgate

79WattAve/AuburnBlvd

80Highway50Corridor

81Carmichael/FairOaks

83CitrusHeights/Orangevale

84PointWest/Tribute

85CampusCommons

86Hazel/Folsom

87ElkGrove/Galt

88Roseville/Rocklin

92SouthNatomas

Source:CBREResearch,LocationIntelligence

Definitions

AverageAskingRateDirectMonthlyLeaseRates,Full-ServiceGross.AvailabilityAllexistingspacebeingmarketedforlease.TotalVacancyRateDirectVacancy+SubleaseVacancy.CBDCentralBusinessDistrict;consistsoftheDowntownsubmarket.

CBRE’smarketreportanalyzesexistingsingle-andmulti-tenantofficebuildingsthattotal10,000+sq.ft.intheGreaterSacramentoregion.,excludingowner-occupiedbuildings.CBREassemblesallinformationthroughtelephonecanvassing,third-partyvendors,andlistingsreceived