Sacramento Industrial Market Report

Lease Rate Distribution

Rates range from $0.86/SF/YR to $48.00/SF/YR.

Available Space by Size

Submarket Breakdown

What Changed — Update Log

This report is updated regularly as new listing data becomes available. Below is a chronological log of what changed in each update.

Sacramento Industrial Market Trends

Sacramento industrial market trends reflect steady demand across the region's major industrial corridors. The Sacramento industrial market is anchored by North Natomas, McClellan Business Park, and the Power Inn Road corridor, with sacramento industrial space in demand from 3PL operators, e-commerce fulfillment, contractors, and light manufacturing tenants. Industrial vacancy rates have tightened as new distribution development along the I-80 and Hwy 50 corridors absorbs available big-box space. Asking lease rates for sacramento industrial space currently range from $0.85 to $1.50/SF/YR NNN, with newer Class A distribution buildings commanding premium pricing.

Key sacramento industrial market trends to watch: continued absorption of large-format distribution space (100K+ SF) along the I-80 corridor; growing demand for smaller flex and light-industrial bays (5K–25K SF) in McClellan and North Natomas; and limited new construction starts in core submarkets. For current asking rates and availability, see the Sacramento warehouse lease rates guide and the submarket breakdown above. For a complete walkthrough of how to evaluate sacramento industrial space options, read our tenant guide covering submarket selection, building types, and lease structures. For the full data-rich quarterly analysis with vacancy rates, net absorption, cap rates, investment sales transactions, and submarket deep dives, see our Sacramento Industrial Market Report Q3 2026.

Sacramento Industrial Cap Rates

Sacramento industrial cap rates currently range from approximately 5.75% to 8.0% for stabilized industrial assets, depending on submarket, building age, tenancy, and lease structure. Single-tenant net-leased distribution buildings in prime corridors (North Natomas, McClellan Business Park, Power Inn Road) trade at the lower end of that range (5.75–6.75%), reflecting stronger tenant demand and lower perceived risk. Multi-tenant warehouse properties in secondary submarkets (Rancho Cordova older stock, North Highlands industrial parks) trade at 7.0–8.0% cap rates, compensating investors for higher management intensity and tenant roll risk.

Sacramento industrial cap rates remain 50–125 basis points higher than comparable Bay Area industrial assets, reflecting the Central Valley capital region's secondary-market positioning but also offering stronger going-in cash yields for investors seeking higher returns. Recent sales of distribution facilities along the I-80 corridor have compressed cap rates modestly as institutional buyers and 1031 exchange investors seek higher-yielding alternatives to saturated coastal markets. For investor-focused analysis of Sacramento industrial cap rates by submarket and building type, contact us for a custom market analysis below.

Sacramento Industrial Real Estate Prices

Sacramento industrial real estate prices vary by property type, submarket, and building class. For lease transactions, asking rates currently range from $0.65 to $1.20/SF/YR NNN for standard warehouse and distribution space, with newer Class A buildings in North Natomas, McClellan Business Park, and Rancho Cordova commanding $0.95–$1.20/SF/YR NNN. Older warehouse stock in North Highlands and South Sacramento can be found at $0.50–$0.75/SF/YR NNN, offering value pricing for cost-sensitive tenants.

For investment sales, Sacramento industrial real estate prices typically range from $100 to $175 per square foot for stabilized warehouse and distribution assets, depending on location, building age, tenancy, and lease structure. Single-tenant net-leased distribution buildings in prime Sacramento submarkets trade at $135–$175/SF, while multi-tenant warehouse properties in secondary locations trade at $100–$135/SF. Industrial land in Sacramento ranges from $12 to $35/SF depending on zoning, utilities, and freeway access. For current Sacramento industrial real estate prices by submarket and property type, contact us for a custom analysis below.