Downtown Sac Profile: Office Investment Activity Continues to Pick Up in Q2
Sacramento, Calif. (July 24, 2019) – Office investment activity in downtown Sacramento picked up in Q2 2019 with the noteworthy sale of Emerald Tower marking strong interest in the region’s urban core. An Investment activity report released today by Downtown Sacramento Partnership demonstrates that low office vacancy rates and limited supply alongside growing visitor activity, employment and new businesses are driving demand.
Key takeaways from Q2:
- Class A vacancy rates continued to drop ending the quarter at 4.7 percent – a 5-year low.
- The sale of Emerald Tower at 300 Capitol Mall for $127M to Evergreen Management Company marks the biggest property sale since 621 Capitol Mall in Q1 2018.
- Food and drink continues to dominate downtown’s retail mix, growing to 34 percent with 7 new businesses opening in the last quarter.
- While only 9 new housing units were completed in the Central City between April 1 through June 30, 2019, another 1,082 units are currently under construction with 274 of new units anticipated to reach completion in Q3.
“We continue to see strong interest in downtown. Investors, businesses and employees have transformed our urban core into a hub for innovation and culture,” said Michael Ault, executive director of Downtown Sacramento Partnership.
Downtown Sacramento Partnership publishes quarterly reports with information covering pedestrian traffic, downtown demographics, development projects, investment activity, office market inventory and retail market trends. Access reports at www.downtownsac.org/about/reports/. For more information, contact Valerie Mamone at [email protected].
Did you know? In Q2 2019, Downtown Sacramento Partnership’s Field & Maintenance Services team fulfilled 15,969 requests for services and information!