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Large industrial availabilities struggle to lease in Sacramento

  • ​​Industrial vacancy in Sacramento currently measures 6.6%, which is its lowest level since the 1990’s. Sub 50,000 square foot deals drive the market, accounting for roughly 92.0% percent of all transactions completed during the past three years.
  • Interest in large warehouses is strong, but the large blocks that remain on the market have struggled to lease. Sacramento faces stiff competition from the nearby Central Valley market which offers lower rental rates as well as a better locale for distribution users looking to expedite shipping times.
  • Some property owners are considering demising their large warehouses down into smaller spaces to accommodate tenants and fill their spaces more rapidly. ​

Source: JLL Research​

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