If you’re budgeting for warehouse or industrial space in Sacramento, you need current lease rate data. Rates vary significantly by submarket, building type, clear height, and lease terms. This analysis breaks down what Sacramento industrial tenants are paying in 2026, based on active listing data across the metro.
How Sacramento Industrial Lease Rates Work
Sacramento industrial space is typically quoted on a NNN (triple net) basis, meaning the tenant pays a base rent plus a pro-rata share of property taxes, insurance, and maintenance (CAM). NNN charges typically add $0.15–$0.30 per square foot per year to the base rate.
Some smaller bays and older buildings are leased on a gross or modified-gross basis, where some or all operating expenses are included in the quoted rate. Always clarify the lease structure when comparing rates.
Rates are quoted as dollars per square foot per year ($/SF/yr). To estimate monthly rent:
Monthly Rent = (Rate × Square Footage) ÷ 12
For example, a 5,000 SF warehouse at $9.60/SF/yr NNN = $4,000/month base rent, plus NNN charges.
Current Sacramento Warehouse Lease Rates by Submarket
Based on active listings across the Sacramento metro, here are the typical rate ranges by submarket. For a detailed breakdown of each area, see our Sacramento submarket guide:
Rancho Cordova
- Rate range: $10.20–$15.00/SF/yr NNN
- Typical rate: $12.00–$13.80/SF/yr
- Profile: Sacramento’s strongest industrial submarket. Newer construction, higher clear heights (28–32 ft), dock-high loading, prime US-50 corridor access. Demand from e-commerce, logistics, and technology-adjacent tenants keeps rents at the higher end.
Elk Grove
- Rate range: $10.20–$13.20/SF/yr NNN
- Typical rate: $11.40–$12.60/SF/yr
- Profile: Newest industrial stock in Sacramento, with modern building specs. Primarily larger-format distribution space (50,000+ SF). Limited small-bay inventory. SR-99 corridor access.
McClellan Park (North Highlands)
- Rate range: $7.80–$12.00/SF/yr NNN
- Typical rate: $9.00–$10.80/SF/yr
- Profile: Former military base redeveloped as a major industrial business park. Wide range of space types — from 2,000 SF flex bays to 500,000+ SF distribution facilities. Rail spur access. Value-oriented compared to Rancho Cordova and Elk Grove.
South Sacramento (Fruitridge / Florin Perkins)
- Rate range: $7.80–$10.80/SF/yr NNN
- Typical rate: $8.40–$9.60/SF/yr
- Profile: Older small-bay industrial buildings (1960s–1980s construction). Lower clear heights (12–18 ft), grade-level loading. Most affordable submarket. High demand from contractors, fabricators, and small e-commerce.
West Sacramento
- Rate range: $8.40–$12.60/SF/yr NNN
- Typical rate: $10.20–$11.40/SF/yr
- Profile: Port of West Sacramento access, rail served (Union Pacific, BNSF). Mix of older port-area buildings and newer industrial development. Attractive for bulk distribution and rail-served manufacturing.
Rate Drivers: What Makes One Warehouse Cost More Than Another
Within each submarket, rates are driven by:
Clear height. Higher clear height commands higher rates. A 32-foot clear warehouse rents for more per square foot than a 16-foot clear building in the same submarket, because the higher clear height enables pallet stacking, mezzanine installation, and more efficient use of the footprint.
Loading type. Dock-high doors (raised platforms for semi-trailers) add value for logistics tenants. Grade-level doors suit smaller trucks, vans, and contractor access. Buildings with both command a premium.
Building age and condition. Newer construction (post-2015) with modern specs rents at the top of each submarket’s range. Buildings from the 1970s–1990s rent in the middle. Older buildings with deferred maintenance rent at the bottom.
Size. Per-square-foot rates are higher for smaller spaces. A 2,000 SF bay costs more per SF than a 50,000 SF warehouse, because the landlord’s fixed costs (management, maintenance, leasing) are spread over fewer square feet.
Lease term. Longer leases (5+ years) typically secure lower per-SF rates than short-term leases (1–2 years). Landlords value stability and offer pricing incentives for longer commitments.
Location and access. Proximity to highways (I-80, US-50, I-5, SR-99) and specific interchanges affects rates. Buildings with direct freeway access or visibility command premiums.
Sacramento Warehouse Lease Rates by Building Type
Rate ranges vary not just by submarket but by the type of industrial building. Here’s how typical asking rates break down across Sacramento building categories:
| Building Type | Typical Rate ($/SF/yr NNN) | Clear Height | Common Sizes | Loading |
|---|---|---|---|---|
| Class A Distribution | $12.00–$15.00 | 32–36 ft | 50,000–250,000 SF | Dock-high (20+ doors) |
| Class B Warehouse | $9.60–$12.00 | 24–28 ft | 10,000–50,000 SF | Dock-high + grade |
| Small-Bay Industrial | $10.80–$13.20 | 14–18 ft | 1,000–5,000 SF | Grade-level |
| Flex / Office-Warehouse | $12.00–$16.80 | 16–20 ft | 2,000–15,000 SF | Grade-level |
| Manufacturing | $8.40–$12.00 | 18–24 ft | 5,000–50,000 SF | Grade-level + rail |
| Cold Storage | $14.40–$18.00 | 28–32 ft | 5,000–50,000 SF | Dock-high |
Small-bay industrial (1,000–5,000 SF) commands a higher per-SF rate because landlord fixed costs are spread over fewer square feet. These spaces are concentrated in South Sacramento (Fruitridge/Florin Perkins) and McClellan Park, where older buildings have been subdivided into individual bays.
Flex space (office + warehouse combo) carries a premium over pure warehouse space because it includes build-out for office area, HVAC, and improved finishes. Flex space is popular with technology, R&D, and light manufacturing tenants who need both clean office environment and warehouse/workshop area.
Sacramento Warehouse Rental Costs by Square Footage
To help tenants budget, here are estimated monthly costs at current Sacramento rates for common warehouse sizes:
| Square Footage | Typical Rate ($/SF/yr) | Monthly Base Rent | With NNN (~$0.25/SF) | Common Use |
|---|---|---|---|---|
| 2,000 SF | $11.40 | $1,900/mo | ~$1,942/mo | Small workshop, contractor |
| 5,000 SF | $9.60 | $4,000/mo | ~$4,104/mo | E-commerce, small distribution |
| 10,000 SF | $9.00 | $7,500/mo | ~$7,708/mo | Mid-size warehouse, 3PL |
| 25,000 SF | $8.40 | $17,500/mo | ~$18,021/mo | Regional distribution |
| 50,000 SF | $7.80 | $32,500/mo | ~$33,542/mo | Logistics hub |
| 100,000+ SF | $7.20–$8.40 | $60,000+/mo | Varies | Large distribution center |
NNN estimates based on $0.25/SF/yr typical for Sacramento industrial. Actual NNN varies by building.
Historical Sacramento Industrial Rate Trends (2020–2026)
Sacramento industrial lease rates have seen significant appreciation over the past six years:
| Year | Avg Rate ($/SF/yr) | YoY Change | Market Conditions |
|---|---|---|---|
| 2020 | $7.20 | — | Pre-pandemic baseline |
| 2021 | $8.40 | +16.7% | E-commerce surge, tight supply |
| 2022 | $9.60 | +14.3% | Peak landlord market, record low vacancy |
| 2023 | $10.20 | +6.3% | Moderating growth, new deliveries |
| 2024 | $10.68 | +4.7% | Balanced market |
| 2025 | $10.92 | +2.2% | Stable absorption |
| 2026 | $11.40 | +4.4% | Bay Area spillover continues |
The 2021–2022 period saw unprecedented rate growth as e-commerce demand and supply chain restructuring drove industrial vacancies to record lows. Since 2023, the market has normalized with 2–5% annual increases — still above inflation but well below the peak. Sacramento’s continued attraction as a Bay Area alternative (lower costs, available labor, highway/rail access) supports steady rate growth.
How Sacramento Compares to Other California Markets
Sacramento’s industrial rates are significantly lower than coastal California markets:
| Market | Typical Industrial Rate ($/SF/yr) |
|---|---|
| Oakland / East Bay | $15.00–$24.00 |
| San Jose / Silicon Valley | $18.00–$30.00+ |
| Los Angeles / Inland Empire | $12.00–$20.00 |
| Sacramento | $7.80–$15.00 |
| Fresno | $6.00–$12.00 |
| Stockton | $5.40–$10.80 |
Sacramento’s Central Valley location and lower cost basis keep rates competitive. Bay Area spillover — companies relocating or expanding from Oakland and San Jose — has been a consistent demand driver pushing Sacramento rates upward over the past five years.
Sacramento County Industrial Lease Rate Trends in 2026
Sacramento County industrial lease rates have continued their upward trajectory in 2026, though the pace has moderated from the 2021–2022 peak. Key trends:
- Average asking rates across Sacramento County have risen approximately 4–6% year-over-year, with Rancho Cordova and Elk Grove seeing the strongest increases due to limited new supply and continued Bay Area spillover.
- Rancho Cordova remains the tightest submarket with vacancy below 5%, pushing rates toward $12.00–$15.00/SF/yr for Class A distribution space. New construction along the US-50 corridor is absorbing quickly.
- Elk Grove continues to see new industrial development along the SR-99 corridor, with modern distribution facilities commanding $10.20–$13.20/SF/yr NNN. Large-format space (50,000+ SF) is in particularly tight supply.
- McClellan Park remains the value play with the widest range of space types — from 2,000 SF flex bays to 500,000+ SF distribution facilities at $7.80–$12.00/SF/yr NNN. Former military base redevelopment continues to add available inventory.
- South Sacramento (Fruitridge/Florin Perkins) continues to see strong demand for small-bay industrial from contractors and e-commerce tenants. Limited new supply in this submarket is pushing rates toward the top of the range.
For current availability and pricing, browse our active Sacramento industrial listings or submit your space requirements. Explore all Sacramento industrial space for lease across the metro.
What to Budget Beyond Base Rent
When calculating total occupancy cost, add:
- NNN/CAM charges: $0.15–$0.30/SF/yr (on top of base rent)
- Utilities: Electric, gas, water, trash — varies by use case, budget $0.10–$0.25/SF/yr for a basic warehouse
- Insurance: Tenant liability insurance, typically $1,000–$3,000/yr depending on use
- Maintenance: If NNN, you pay your pro-rata share of building maintenance
- Annual escalations: Most Sacramento industrial leases include 3% annual rent increases
- Security deposit: Usually 1–2 months’ rent
- Tenant improvements: If the space needs work, negotiate TI allowance or factor in build-out costs
Negotiating Lease Rates in Sacramento
Sacramento’s industrial market in 2026 is balanced — not a landlord’s market like 2021–2022, but not deeply soft either. Negotiating leverage depends on:
- Space size: Larger tenants (25,000+ SF) have more leverage for concessions
- Lease term: 5+ year terms get better rates and TI allowances
- Building condition: Spaces needing work are negotiable on rate or improvement allowance
- Market conditions: Vacancy is slightly up from 2022 lows, giving tenants modest leverage
Typical concessions: 1–2 months free rent on a 3–5 year lease, TI allowances for tenants signing 5+ year terms, and 3% annual escalations as standard.
Frequently Asked Questions: Sacramento Warehouse Lease Rates
What are current commercial lease rates in Sacramento for industrial space?
Current Sacramento commercial lease rates for industrial and warehouse space range from $7.80 to $15.00 per square foot per year on a NNN (triple net) basis, depending on submarket, building age, and clear height. South Sacramento offers the lowest rates ($7.80–$10.80/SF/yr), while Rancho Cordova commands the highest ($10.20–$15.00/SF/yr). Sacramento County industrial rates have risen 4–6% year-over-year due to Bay Area spillover demand.
What is the average warehouse lease rate in Sacramento?
The average Sacramento warehouse lease rate in 2026 ranges from $7.80 to $15.00 per square foot per year on a NNN (triple net) basis, depending on submarket, building age, and clear height. South Sacramento offers the lowest rates ($7.80–$10.80/SF/yr), while Rancho Cordova commands the highest ($10.20–$15.00/SF/yr).
How much does it cost to lease a 5,000 sq ft warehouse in Sacramento?
A 5,000 SF warehouse at an average rate of $9.60/SF/yr NNN would cost approximately $4,000 per month in base rent, plus NNN charges of roughly $0.15–$0.30/SF/yr ($63–$125/month). Total monthly cost typically falls between $4,100 and $4,200.
Are Sacramento industrial lease rates going up?
Sacramento industrial rates have risen steadily over the past five years, driven by Bay Area spillover demand from companies relocating from Oakland and San Jose. While 2026 is more balanced than the 2021–2022 landlord’s market, rates continue to trend upward, particularly in newer submarkets like Elk Grove and Rancho Cordova.
What does NNN mean in a warehouse lease?
NNN (triple net) means the tenant pays a base rent plus their pro-rata share of property taxes, insurance, and common area maintenance (CAM). In Sacramento, NNN charges typically add $0.15–$0.30 per square foot per year to the base rate. Some smaller bays are leased on a gross or modified-gross basis instead.
Which Sacramento submarket has the cheapest warehouse space?
South Sacramento (Fruitridge/Florin Perkins) typically has the most affordable warehouse space, with rates ranging from $7.80 to $10.80/SF/yr NNN. These are older buildings (1960s–1980s) with lower clear heights (12–18 ft) and grade-level loading.
Do I need a broker to lease warehouse space in Sacramento?
While not legally required, working with a tenant rep broker is highly recommended. Industrial leases are complex (NNN structures, TI allowances, escalations), and brokers can negotiate better terms. Submit your requirements and we’ll match you with available space and connect you with a qualified broker.
Find Warehouse Space at Current Rates
Browse active Sacramento industrial listings with current asking rates. Or submit your requirements — size, budget, submarket preference — and we’ll match you with available Sacramento industrial space that fits your budget.
Related Sacramento Industrial Guides
- How to Find Warehouse Space in Sacramento — Complete tenant guide to finding Sacramento industrial space for lease
- Sacramento Submarket Guide — Detailed breakdown of Rancho Cordova, Elk Grove, McClellan Park, South Sacramento, and West Sacramento
- Small Warehouse Space in Sacramento — Guide for tenants needing 1,000–5,000 SF bays
- Distribution Center Space in Sacramento — Guide for logistics and distribution tenants
- Flex Space for Lease in Sacramento — Guide for flex/office-warehouse space
- Cross-Dock Warehouse Space in Sacramento — Guide for cross-dock logistics operations
- 3PL Warehouse Space in Sacramento — Guide for third-party logistics operators
Lease rate data is based on publicly available active listings and general market observations. Individual property rates vary. For current pricing on specific properties, refer to listing details or contact us directly.
For investor-focused data on Sacramento industrial cap rates, see our market report with cap rate ranges by submarket and building type.
For current Sacramento industrial market trends, including vacancy rates and rent growth data, see our market report.