November 2, 2026

If you read the Q3 office reports, you'll get three different answers. Kidder Mathews has Sacramento direct office vacancy at 11.0%. Cushman & Wakefield has overall vacancy at 13.6%. CBRE has availability at 23%.

None of them are wrong. They measure different buildings and different things. Vacancy is space that's empty today. Availability includes space that's still occupied but coming back, plus sublease space. For a landlord, availability is the better gauge of how much competition is out there.

Where the reports agree is the direction. CBRE recorded its third straight quarter of positive office absorption, with 630,000 SF of leasing in Q3. Cushman says vacancy is at its lowest level since 2022, and Roseville/Rocklin is the strongest suburban submarket at 10.2%.

So the office market is stable and slowly getting better. But it isn't one market. What we see day to day:

• Renewals are carrying the market. A lot of the larger deals this year have been existing tenants staying put, often with a smaller footprint or better terms.
• Medical and owner-user space is holding up best. Buyers and tenants will pay for buildings that fit a specific use.
• Older suburban buildings with large blocks of vacancy are the hardest. Lower rent alone usually doesn't fix it. These owners need a plan for TI, parking, the lobby and restrooms, or a different use altogether.

For owners, keeping a tenant is almost always cheaper than replacing one once you add up downtime, TI and commissions. Start renewal conversations 12 to 18 months before expiration, not 90 days.

For tenants, you still have leverage in most of the region. Ask for TI, free rent and flexibility on term, and look at sublease space, which can come with furniture and a lower rate.

If you have an office lease coming up, or own a building with vacancy you're trying to figure out, we're happy to walk through the options.