SACRAMENTO-After balancing the budget earlier this year, State agencies with green on their ledger actively sought to execute deferred real estate decisions and expand their footprint in the Sacramento region accordingly. That is according to Elliot Williams, local research analyst at Jones Lang LaSalle. “The private sector continued to make strides as well with professional services, healthcare, and insurance providers contributing to overall gains for the quarter,” he says.

In all, according to Williams, the region recorded just less than 685,000 square feet of positive absorption—the highest level seen since 2005—bringing the year-to-date total to 992,000 square feet. “Growth in administrative employment is a telling sign that confidence is improving as businesses begin to bring back jobs that were lost during the downturn,” he adds.

The availability of commodity office space in the suburban submarkets will aid small and mid-sized companies as they look to grow and expand their businesses, Williams explains. “Furthermore, scarcity of large block availabilities will yield higher contract rents compared to smaller commodity space that's in less demand.”