JLL Releases Real Estate Report on Sacramento Law Firm Sector

Key Highlights Sacramento:
– Tenant-favorable market conditions over the past 24 months, with landlords offering generous concessions and below historical average rental rates for Class A office space, allowed law firms in Sacramento to trade up to higher quality space options during the peak of the downturn.

– Many firms were able to execute early renewals or extensions, while negotiating for lower lease rates than their contracts signed during the peak of the market.

– Over the next 36 to 48 months, Sacramento’s CBD is expected to reach full recovery, leaving few existing options for prospective tenants looking to relocate or expand.

– Rental rates are expected to be 15.0 to 20.0 percent higher than current rates tenants are facing.

– Law firm tenants that are actively signing leases today are falling in line with the recent rightsizing trend, consolidating their footprints and partner private office sizes, to utilize space more efficiently.

– The future development of Sacramento’s Entertainment and Sports Complex is likely to have an impact on demand from law firms looking to relocate in closer proximity to the ESC, therein attaining additional locational capital that will come from the completion of the new sports complex.

West Coast Commercial Real Estate News