The Sacramento Commercial Real Estate Market

Reading Time: 7 minutes

Commercial real estate professionals in Sacramento harness Crexi’s technology tools to thrive in today’s market. All across the US, CRE investors and tenants are eying Sacramento as a promising investment market with stable fundamentals and attractive cap rates. Crexi connects interested buyers with in-depth market research, a large property inventory, and the opportunity to connect directly with Sacramento brokers. 

In Sacramento and the surrounding suburbs, brokers use Crexi’s robust listing, lead management, and marketing tools to close deals. The open marketplace allows commercial brokers to interact with buyers and tenants who’ve indicated an interest in the region.

As of this writing, Crexi’s commercial real estate transaction tools have facilitated deals representing over $300 billion in property value. The marketplace has featured over 400,000 properties worth over a combined $1.2 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.

The State of Commercial Real Estate in Sacramento

Sacramento spans over 100 square miles and is among the fastest-growing cities in California, even in the midst of the pandemic. Between 2018 and 2022, the city added nearly 24,000 residents as people left higher-cost nearby urban areas such as San Francisco and San Jose and relocated to Sacramento.

Located in Northern California, Sacramento is the capital city of the state and the business and cultural center of the Sacramento Valley. The metro area is a major educational and political hub, home to California State University Sacramento and University of California Davis, and has been ranked America’s most diverse city.

Strong population growth and a recovering economy are two reasons why the demand for commercial real estate in Sacramento keeps growing. Retail vacancy rates are at their lowest point since the pandemic began, sales prices for multifamily properties are at record highs, and the industrial market shows no signs of slowing down.

Sacramento Regional Breakdown

Home to nearly 525,000 people, Sacramento is the sixth most-populous city in California and the fifth-largest metropolitan area in California. Over the past 10 years, the population of Sacramento has grown by nearly 13%, adding over 58,000 residents:1,2,3,4

  • Sacramento is home to 524,943 people, with more than 2.3 million in the larger metropolitan area.
  • Metro area includes Sacramento, Roseville, and Folsom.
  • Sacramento is the capital of California and the ninth-largest capital in the U.S.
  • Over the past 10 years the population of Sacramento grew by 12.5%, more than double the 6.1% growth rate for California.
  • Median age in Sacramento is 37.6 years, about the same figures in California and in the U.S.
  • Sacramento’s per capita income is $37,122 and median household income is $75,533.
  • Over the past year median household incomes in Sacramento increased by 4.9% while property values grew by 4.5%. 

Sacramento Job Market

Sacramento added about 34,000 workers to the labor force in the first quarter of 2022, driving the unemployment rate down to just 3.7%, according to the U.S. Bureau of Labor Statistics. Looking at the state overall, California has now regained 82% of the jobs lost since the beginning of the pandemic:

  • GDP for Sacramento is $145 billion and has grown by 49% over the past ten years.
  • Unemployment rate in Sacramento is 3.7% as of March 2022.
  • Fastest-growing employment sectors in Sacramento include construction, manufacturing, trade and transportation, leisure and hospitality, and professional and business services.
  • Sacramento is ranked among the top cities with the strongest economic recoveries from the pandemic recession, based on key criteria including change in consumer spending, small business openings and revenue, and job listings, according to SmartAsset.
  • Top employers in Sacramento include the State of California, UC Davis Health, Kaiser Permanente, Sacramento County, U.S. Government, Sutter Health, and Dignity Health/Catholic Healthcare West.
  • The Sacramento region is home to University of California  Davis, Sacramento State University, and many other private and public institutions of higher education.
  • Nearly 90% of Sacramento’s residents are high school graduates or higher, while more than 34% hold a bachelor’s degree or advanced degree.
  • Transportation infrastructure of Sacramento includes several interstate highways and freeways, passenger and freight rail services, and Sacramento International Airport located 10 miles northwest of downtown.

Sacramento Industrial Market

The Sacramento industrial market is “white hot” and shows no signs of slowing down, according to the most recent report from Newmark. Vacancy rates are hovering at all time lows, leases rates for industrial space in Sacramento have reached all-time highs, and properties are trading at an average cap rate of 5.2%:

  • Total industrial inventory: 165.5 million SF
  • Average asking rent: $0.85/SF/month, NNN
  • Vacancy rate: 2.0%
  • Absorption: 819,000 SF in Q1 2022
  • Key lease transactions by tenant: RL Liquidators for 132,100 SF, ACS OPCO for 112,050 SF, Mailing Systems, Inc. for 110,000 SF
  • New construction: 4.5 million SF currently under construction
  • Investment sales trends: $132.6 million in Q1 2022, average sale price $132/SF for warehouse/distribution, average cap rate 5.2%
  • Largest industrial submarkets: Power Inn, West Sacramento, Davis/Woodland, Roseville/Rocklin

Find Sacramento industrial space for lease.

Sacramento Office Market

Although tenants are still continuing to downsize, the Sacramento office market is showing signs of improvement. Asking rents rose for the first time in 12 months, negative net absorption is slowing, and opportunistic investors remain bullish on the market:

  • Total office inventory: 57,702,124 SF
  • Average asking rents: $2.08/SF per month
  • Vacancy rate: 17.2%
  • Net Absorption: -130,000 in Q1 2022
  • New construction: 0 SF delivered in Q1 2022 with no new office space currently under construction
  • Investment sales trends: $294 million sold in Q4 2021, transaction sale price $198/SF, market cap rate 7.2%
  • Largest office submarkets: Downtown, Highway 50 East, Roseville, Howe/Fulton/Watt Avenue

Find Sacramento office space for lease. 

Sacramento Retail Market

The demand for retail space in Sacramento soared at the end of last year, recording the second-highest level of net absorption since 2018. Vacancy is at the lowest point in two years, with strong demand from tenants in the grocery, home improvement, fitness, furniture, clothing sectors, and more:

  • Total retail inventory: 66,052,283 SF
  • Average asking rent: $1.42/SF per month, NNN
  • Vacancy rate: 7.9%
  • Absorption: 637,000 in H2 2021
  • Key leasing activity by tenant: Chuze Fitness for 42,000 SF, Amazon Fresh for 41,500 SF, Sportsman’s Warehouse for 40,100 SF  
  • Investment sales trends: $648.5 million sold in H2 2021, average sales price $181/SF, average cap rate 6.4%
  • New construction: 83,600 delivered in H2 2021 with 220,735 SF currently under construction
  • Largest retail subclasses: Neighborhood center, community center, power center, strip center

Find Sacramento retail space for lease.

Sacramento Multifamily Market

Pricing for multifamily property in Sacramento has reached a record high, with the metro area becoming one of the most sought-after secondary markets in the country. Investor demand is pushing cap rates down, as demand for apartment properties continues to outpace available supply:

  • Total housing units: 909,133
  • Renter occupied: 39%
  • Total apartment inventory: 153,547 units
  • Effective rent per unit: $1,886
  • Annual rent change: +13.6%
  • Vacancy rate: 2.2%
  • New construction: 389 units delivered in Q1 2022, with 5,023 units currently under construction
  • Investment sales trends: $509 million in Q1 2022, $302,883 per unit, 4.6% market cap rate
  • Median household income: $75,533
  • Per capita income: $37,122
  • Largest multifamily submarkets: South Sacramento, Roseville/Rocklin, Central Sacramento

Find Sacramento multifamily property for sale.

How Crexi Connects Buyers and Tenants to Sacramento CRE Properties

No matter where they’re located, buyers and tenants use Crexi’s open marketplace to quickly browse and identify commercial properties in Sacramento. The capital city’s fast-growing population and stable, single-digit vacancy rates make it an attractive market across asset classes.

Tenants and buyers alike use Crexi’s free search functionality to explore Sacramento property for sale and lease. Users can filter their searches by price or rate per square foot, property type, asset class, square footage, cap rate, and even neighborhood.

Once the ideal property is identified, investors and tenants can immediately connect to the listing’s broker representative through Crexi. Those interested in Sacramento assets can download OMs and brochures, message brokers, and even submit letters of intent (LOI) using Crexi’s secure system.

Intelligence Connects Investors to Data and Market Knowledge 

Commercial investors and tenants seeking their perfect property use Crexi Intelligence to inform their CRE decision-making. Intelligence directly connects CRE professionals with a database including thousands of third-party verified sales comparables and property records in one of the nation’s most attractive MSAs. Property-seekers can also view in-depth data insights directly on each property page, placing the tools to make the most-informed CRE decisions in the hands of buyers and tenants.

Intelligence is available to buyers, sellers, and tenants on a subscription basis.

How Sacramento Brokers Win with Crexi

Crexi features nearly 3,400 Sacramento properties for sale and for lease within the metropolitan area. Industrial drives most regional activity, and attracts tenants, corporate investors, and those seeking timely 1031 exchanges.

Throughout the Sacramento MSA, brokers can list and manage properties with a few clicks across various asset classes, including:

  • Industrial units
  • Mixed-Use developments
  • Office buildings
  • Multifamily units
  • Hospitality facilities
  • Land Parcels
  • Non-traditional properties such as data centers, medical offices, etc.

Brokers take advantage of Crexi’s virtual tools and marketplace to navigate listings from start to close. Sacramento realtors can easily connect with leads and watch buyer activity occur in real-time. Additionally, Crexi’s encrypted file storage allows brokers to compile and store due diligence paperwork quickly.

However, the real power of Crexi’s broker technology appears with Sale PRO, Lease PRO, and All PRO. 

Crexi PRO Dashboard 2020

Crexi All PRO

Crexi Sale PRO and Lease PRO boost brokers’ workflow with high-level lead contact tools and marketing analytics, as well as customized and branded lead reports. PRO listings are automatically in highly visible squares on Crexi’s search pages, immediately apparent to both buyers and tenants.

Crexi’s email blasts also distribute PRO listings to thousands of relevant buyers and tenants nationwide every week. Using machine learning optimization, Crexi’s marketing emails select highly relevant properties tailored to each user’s search behavior. This customization earns Crexi emails a highly engaged click-through rate (CTR) average of 10-15%.

Crexi PRO subscribers also enjoy unlimited access to Intelligence at no added cost. Inside Intelligence, PRO users can explore a database with over 13 million sales comparables. Access to over 153 million property records and dozens of MSA market reports help brokers facilitate the most successful deals.

Brokers — including those in the Sacramento MSA — use Crexi PRO to engage with more than 123,000 leads interested in Sacramento and 12.4 million new leads nationwide added in 2021 alone. 

On average, PRO users earn 125% more leads and win six-to-eight more deals on average than non-PRO brokers.

Contact to learn more about All PRO.

Similar Articles

Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

Share This Article