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Sacramento industrial rental rate growth one of the strongest amongst top U.S. metro’s

•Sacramento has been on a tear over the last 18-24 months. After staying steady for years, strong demand and lack of options have begun to catch up with the market. Vacancy fell under 5.0% for the first time in nearly 20 years this year. With demand so strongly outpacing supply, landlords have taken advantage and pushed rents market wide, primarily in primary submarkets such as Northgate, West Sacramento, and Power Inn. As such, the average rental rate has grown 12.5% year-over-year, the fifth highest growth total among major U.S. metro’s, sitting at $0.46 NNN.

•This trend shows no signs of slowing down with Sacramento finally beginning to see spillover from priced out Bay Area tenants, as well as the plethora of big box speculative warehouses breaking ground in West Sacramento which should be priced aggressively in the high $0.50’s NNN. 

Source: JLL Research

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