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Demand in Sacramento’s “Sweet Spot” not being met

Unlike many other industrial markets who see the majority of their demand at the greater than 50,000 s.f. or less than 25,000 s.f. thresholds, the Sacramento industrial market see’s the majority of their demand come from the 18-35,000 s.f. range. The demand has become so strong that many of the requirements aren’t being met. There are currently only 17 existing buildings market wide that meet this size requirement, however most are not equipped with amenities that these tenants need, such as yard or multiple dock doors. With developers hesitant to build because of high land prices and sluggish rent growth these requirements should continue to go unanswered. ​

Source: JLL Research

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