Q1 2023: Sacramento Industrial Market Report

Sacramento’s Industrial Market remains positive with 2.3 million square feet of net absorption and 2.8 million square feet currently under construction. Vacancy rates are up by 0.8 percent year-over-year to 4.5 percent, which is the highest point since Q2 2021. Demand has kept pace with development, while lease rates continue to increase and are up 6.8 percent over the past 12 months reaching $10.81 per square foot. Stockton’s Industrial Market has 5.7 million square feet of net absorption with a current vacancy of 5.8 percent. Recent leases include Target (1.4 million square feet), Williams Sonoma (1.1 million square feet), and Prism Logistics (751,000 square feet).