The Sacramento Commercial Real Estate Market

Shanti Ryle

April 28, 2025

between two buildings in downtown Sacramento

Sacramento offers a compelling mix of opportunity and value for commercial real estate professionals, investors, and tenants looking for long-term potential in a competitive California market. Crexi empowers users to navigate this landscape with confidence, offering access to property listings, in-depth market research, and seamless connections to Sacramento’s top brokers.

Local brokers also rely on Crexi’s suite of tools to market listings, manage leads, and close deals efficiently. Whether they’re targeting Sacramento’s urban center or its fast-growing suburbs, Crexi helps them reach qualified buyers and tenants actively searching in the region.

As of this writing, Crexi's commercial real estate transaction tools have facilitated deals representing over $650 billion in property value. The marketplace has featured over 400,000 properties worth over a combined $7 trillion since Crexi's launch in 2016.

Crexi serves Sacramento, Roseville, Folsom, and the entirety of Sacramento County as the fastest-growing digital commercial real estate marketplace.

a yellow bridge crossing the Sacramento river in Sacramento

The State of Sacramento Commercial Real Estate

Sacramento sits at the meeting point of the Sacramento and American rivers in the heart of the Central Valley, California’s prime agricultural regions. Spanning nearly 1,000 square miles, the capital city blends the charm of historic neighborhoods with the energy of a city on the rise.

Long considered a government town, Sacramento has evolved into a thriving center for innovation, technology, and culture. The metro area is home to nearly 90,000 tech jobs and continues to grow as a hub for emerging industries. Add in a wave of young professionals, a rising culinary and arts scene, and a strong pipeline of mixed-use development, and it's clear why the city’s momentum continues to build.

With a diverse economy, expanding population, and prime location, Sacramento offers the right mix of stability and opportunity for commercial real estate investors to pursue long-term success.

Sacramento Regional Breakdown

Sacramento continues to stand out as one of California’s most livable and economically appealing metro areas. With a growing population and a balanced mix of affordability, opportunity, and quality of life, the region is steadily attracting new residents each year. The area’s younger median age and strong household income figures point to a healthy, dynamic market with long-term growth potential.

As larger cities across the state face population declines, Sacramento’s steady rise tells a different story - one of resilience, appeal, and upward momentum.

The City of Sacramento is home to more than 526,000, with nearly 1.6 million residing in Sacramento County.
Most populated cities in the metro area include Sacramento, Elk Grove, Citrus Heights, and Folsom.
The population is projected to grow by 1% annually through 2027, thanks to relatively affordable housing, excellent job opportunities, and other key factors.
The median age is 36.2, slightly younger than the overall figure for California.
Per capita income is $43,982, while the median household income is $85,928.

An old theater marquee in downtown Sacramento

Sacramento Job Market

Sacramento’s economy is fueled by a diverse mix of public and private sector activity, with strong momentum in healthcare, education, government, and technology. The region’s GDP has grown steadily over the past decade, and strategic investments in sectors like agtech, life sciences, and advanced manufacturing continue to shape its future. Anchored by major employers and supported by top-tier universities, the city offers a solid foundation for long-term workforce growth.

The Sacramento-Roseville-Arden-Arcade MSA boasts a GDP of $189.6 billion, up from $149 billion since 2010.
The unemployment rate is 4.8% as of February 2025, according to the U.S. Bureau of Labor Statistics (BLS).
Employment sectors reporting the most robust growth include education and health services, government, trade, transportation, and utilities.
The city is focused on nurturing key industry sectors such as agtech and foodtech, life sciences, future mobility, technology, semiconductors, fintech, and advanced manufacturing.
Largest private employers include Kaiser Permanente, Sutter Health, Dignity Health, Intel, and Raley's Corporation.
Sacramento County is witnessing significant real estate development, including new residential subdivisions and multi-family buildings, as well as expanding mixed-use developments like Phase VI of the Bridge District.
The metropolitan area boasts prominent educational institutions, including California State University - Sacramento, the University of California - Davis, and American River College.
Nearly 38% of the residents hold bachelor's or postgraduate degrees.
Transportation infrastructure includes interstate highways I-5 and I-80, Sacramento International Airport, and the Port of West Sacramento for maritime commerce.

The state Capitol building of Sacramento

Sacramento Industrial Market

After several years of rapid expansion, Sacramento’s industrial market is entering a period of recalibration. While new supply has outpaced demand in recent quarters, tenant interest is beginning to pick up once again. Submarkets with limited construction activity continue to show steady performance, reinforcing the value of well-located assets. As the region works through its current pipeline, all signs point to a return to balance, with long-term growth potential still intact.

Market overview (Colliers Q4 2024)

Inventory: 145,199,783 SF
Vacancy rate: 6.5%
Absorption: -745,872 SF (YTD)
Key leases by tenant: Rivian (480,000 SF); Shamrock Foods (150,000 SF), LaMesa RecVan (141,000 SF)
Under construction: 1.5 million SF
Largest submarkets: Power Inn Area, West Sacramento, Davis/Woodland

Crexi Insights

These are the most recent industrial lease and sales trends from Crexi Insights (as of April 2025):

For Lease (active)

Asking rate/SqFt (median): $12 per year
Median SqFt/listing: 4,800
Days on market: 207
Total listings on Crexi: 245 spaces

For Sale (active)

Median asking price: $3 million
Price/SqFt: $187
Asking cap rate: 6.7%
Days on market: 175
Total listings on Crexi: 61

Sales Comps (past 12 months)

Median sold price: $1.6 million
Sold price/SqFt: $158
Total sales volume: $114.8 million
Median SqFt sold/transaction: 9,820
Total SqFt sold: 972,100
Days on market (median): 240

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a sports arena in Sacramento, surrounded by downtown buildings

Sacramento Office Market

Sacramento’s office market continues to evolve as it adapts to changing occupancy patterns and shifting tenant priorities. While vacancy rates remain relatively high, there are encouraging signs of stabilization, with leasing activity slowly gaining momentum. The market is undergoing a broader reset, driven by a combination of downsizing, state office consolidations, and increased interest in conversions. Despite the challenges, strategic sales and tenant movement hint at cautious optimism for the long-term opportunities ahead.

Market overview (Colliers Q4 2024)

Inventory: 56,555,719 SF
Vacancy rate: 21.5%
Absorption: -892,111 SF (YTD)
Key leases by tenant: Clear Blue Commercial (213,000 SF); Gainwell (55,000 SF)
Largest submarkets: Downtown, Highway 50 East, Roseville

Crexi Insights

Looking for the most recent insights into the Sacramento office market? Crexi Intelligence provides a comprehensive look at the city's commercial real estate landscape, covering everything from recent property transactions to leasing trends. Here are the latest figures (as of April 2025):

For Lease (active)

Asking rate/SqFt (median): $21 per year
Median SqFt/listing: 2,171 SF
Days on market: 308
Total listings on Crexi: 866 spaces

For Sale (active)

Median asking price: $1.3 million
Price/SqFt: $241
Asking cap rate: 6.8%
Days on market: 139
Total listings on Crexi: 75

Sales Comps (past 12 months)

Median sold price: $2.2 million
Sold price/SqFt: $236
Total sales volume: $150.2 million
Median SqFt sold/transaction: 10,500 SF
Days on market (median): 789

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Autumn leaves at a park in front of downtown Sacramento

Sacramento Retail Market

Sacramento’s retail market remains active, with steady demand continuing to drive interest across key suburban growth areas like Roseville, Elk Grove, and Folsom. While vacancy and availability rates have seen slight fluctuations, overall leasing activity remains healthy, especially in well-positioned retail centers.

New developments are modest but meaningful, with tenants targeting premium spaces in competitive submarkets. As residential growth fuels new retail demand, the market is expected to maintain its momentum going forward, particularly in areas with strong population and housing expansion.

Market overview (CBRE Retail Figures Report Q1 2025)

Inventory: 49,274,042 SF
Vacancy rate: 5.6%
Absorption: -79,270 SF (2024 net absorption)
Key leases by tenant: Ace Pickleball Club (42,000 SF); Golden Connection (6,435 SF); Incredible Pets (5,188 SF)
Under construction: 252,000 SF
Largest submarkets: Roseville, Laguna/Elk Grove, Folsom/El Dorado Hills

Crexi Insights

Here’s a snapshot of the most recent lease and sales retail trends from Crexi Insights (as of April 2025):

For Lease (active)

Asking rate/SqFt (median): $19 per year
Median SqFt/listing: 2,018 SF
Days on market: 424
Total listings on Crexi: 561 spaces

For Sale (active)

Median asking price: $1.3 million
Price/SqFt: $241
Asking cap rate: 6.8%
Days on market: 139
Total listings on Crexi: 75

Sales Comps (past 12 months)

Median sold price: $1.2 million
Sold price/SqFt: $269
Total sales volume: $89.5 million
Sold cap rate: 5.8%
Median SqFt sold/transaction: 5,048 SF
Days on market (median): 165

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a bus station with a bus headed towards Watt in Sacramento's larger county

Sacramento Multifamily Market

Sacramento’s multifamily market entered 2025 on strong footing, with renter demand rebounding and occupancy reaching its highest level in over two years. While elevated supply has kept rent growth moderate, the pace of new construction has begun to slow, setting the stage for a more balanced market ahead.

Landlords have regained leverage in many submarkets, with concessions starting to ease and leasing activity holding steady. Investment momentum is picking up as fundamentals improve and pricing finds firmer ground. Overall, the market is expected to stay healthy, supported by steady demand and a more measured development pipeline.

Market overview (Colliers Q4 2024)

Multi-unit inventory: 161,147 units
Vacancy rate: 4.5%
Average rent per unit: $1,982
Units under construction: 3,059
Units delivered: 884 (Q4 2024)
Units absorbed: 1,614 (Q4 2024)
Largest submarkets: South Sacramento/Elk Grove, Central Sacramento, Roseville/Rocklin