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Office Properties in Sacramento Are Now Selling for Less Than Industrial Properties

Industrial Average Per-Square-Foot Prices Have Nearly Doubled in Five Years
In a recent sale reflecting the overall trend both in Sacramento and across the country, Chavez Management Group acquired <a href="https://product.costar.com/detail/all-properties/340459/summary" target="_blank" link-data="{&quot;cms.site.owner&quot;:{&quot;_ref&quot;:&quot;00000164-904d-d794-ad6f-dcff6d680000&quot;,&quot;_type&quot;:&quot;ae3387cc-b875-31b7-b82d-63fd8d758c20&quot;},&quot;cms.content.publishDate&quot;:1695159096077,&quot;cms.content.publishUser&quot;:{&quot;_ref&quot;:&quot;0000017a-e936-d5c7-a3ff-ed3e18d30000&quot;,&quot;_type&quot;:&quot;6aa69ae1-35be-30dc-87e9-410da9e1cdcc&quot;},&quot;cms.content.updateDate&quot;:1695159096077,&quot;cms.content.updateUser&quot;:{&quot;_ref&quot;:&quot;0000017a-e936-d5c7-a3ff-ed3e18d30000&quot;,&quot;_type&quot;:&quot;6aa69ae1-35be-30dc-87e9-410da9e1cdcc&quot;},&quot;link&quot;:{&quot;attributes&quot;:[],&quot;target&quot;:&quot;NEW&quot;,&quot;url&quot;:&quot;https://product.costar.com/detail/all-properties/340459/summary&quot;,&quot;_id&quot;:&quot;0000018a-af5b-dbf3-addf-ffff08680001&quot;,&quot;_type&quot;:&quot;ff658216-e70f-39d0-b660-bdfe57a5599a&quot;},&quot;linkText&quot;:&quot;2868 Prospect Park&quot;,&quot;_id&quot;:&quot;0000018a-af5b-dbf3-addf-ffff08680000&quot;,&quot;_type&quot;:&quot;809caec9-30e2-3666-8b71-b32ddbffc288&quot;}">2868 Prospect Park</a> for $12.7 million or just $75 per square foot. The office property previously sold in 2019 for $149 per square foot. The new sales price reflects a 49% loss in value after occupancy at the building dropped by 42%. (CoStar)
In a recent sale reflecting the overall trend both in Sacramento and across the country, Chavez Management Group acquired 2868 Prospect Park for $12.7 million or just $75 per square foot. The office property previously sold in 2019 for $149 per square foot. The new sales price reflects a 49% loss in value after occupancy at the building dropped by 42%. (CoStar)
CoStar Analytics
September 21, 2023 | 5:56 P.M.

Rising interest and vacancy rates have had a significant impact on commercial property values, both in Sacramento and across the country. This is reflected in sale prices for office properties on a per-square-foot basis, which have fallen to their lowest point since 2012. Meanwhile, industrial properties continue to show moderate price appreciation as investors consider them to be one of the most stable asset classes in the face of rising interest rates.

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