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Sacramento & Central Valley big box warehouse lease rates on the rise

  • ​Developers are scrambling to get large Class A warehouses to the market to meet strong demand. Inexpensive land and development costs, coupled with a strategic location, has made Central Valley, an attractive destination for distribution users. The area also benefits from spillover from tenants priced out of the Bay Area.
  • Strong demand in general has kept warehouse rents rising. Landlords have taken advantage and, as a result, big box warehouse rents have climbed an average of 31.2% across the region’s primary submarkets during the last 7 years. With an active development pipeline and strong tenant demand, this trend is not expected to change. ​​

Source: JLL Research

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