The Sacramento Commercial Real Estate Market

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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 considering Sacramento 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. 

Brokers use Crexi’s robust listing, lead management, and marketing tools in Sacramento and the surrounding suburbs 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 $650 billion in property value. The marketplace has featured over 400,000 properties worth a combined $5.5 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, the capital of California, is nestled in the north-central part of the state, where the Sacramento and American rivers converge. The city lies in the heart of California’s prime agricultural region, the Central Valley, encompassing approximately 994 square miles. 

Despite being frequently overshadowed by other cosmopolitan areas within the state, Sacramento continues to flourish due to ongoing cultural and technological developments. The metro area is experiencing an energetic renaissance, with young professionals attracted to its job opportunities, urban vibe, burgeoning microbreweries, and an arts and food scene.
Sacramento also boasts a robust economy with a growing population. As the state capital, the city is home to numerous key businesses and government institutions, cementing its status as a dynamic hub for work, recreation, and commercial real estate investment. These elements collectively contribute to Sacramento’s appeal as a vibrant, thriving city poised for continued growth.

Sacramento Regional Breakdown

Sacramento’s population growth trends reflect a city on the rise. The area continues to attract individuals from diverse backgrounds thanks to its dynamic blend of economic opportunities, cultural richness, and quality lifestyle offerings. While larger cities in California have seen a slowdown in growth or even a decrease in population, Sacramento maintains a steady upward trajectory.

  • The City of Sacramento is home to 528,000, with nearly 1.6 million residing in Sacramento County.
  • Since 2010, the population has increased by 13.2% and 11.7%, respectively.
  • Most populated cities in the metro area include Sacramento, Elk Grove, Citrus Heights, and Folsom.
  • Population is projected to grow by 1% annually over the next several years.
  • The median age is 38.3, about the same figure as in the US.
  • Per capita income is $44,724, about 10% higher than in the United States.
  • Median household income is $89,237, about 20% higher than the national average.

Sacramento Job Market

The city plays host to various industries, from government and education to healthcare services and technology. Sacramento’s economic landscape is also driven by the growing tech scene, adding fresh dynamism to the job market. This broad diversity of industries not only provides a variety of employment opportunities but also serves as a buffer against economic downturns.

  • The Sacramento-Roseville-Arden-Arcade MSA boasts a GDP of $176.3 billion, up from $131 billion since 2010.
  • The unemployment rate is 4.5% as of November 2023, according to the U.S. Bureau of Labor Statistics (BLS).
  • Employment sectors reporting the most robust growth include mining, logging, construction, and education and health services.
  • The top 5 industry sectors in Sacramento County are agriculture, health care and medicine, post-secondary education, technology, and clean energy.
  • Largest private employers include Kaiser Permanente, Sutter Health, Dignity Health, Intel, and Raley’s Corporation.
  • Sacramento County is witnessing significant real estate development, including healthy aging development proposed by UC Davis Health and AKT, and Evergreen Apartments proposed 38-unit, 4-story residential building.
  • Additionally, the relocation of tenants from three downtown Sacramento state office buildings is expected to make way for new facilities in 2025.
  • The metropolitan area boasts prominent educational institutions, including California State University – Sacramento, the University of California – Davis, and American River College.
  • Over 36% 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.

Sacramento Industrial Market

The Sacramento industrial market is growing significantly, with the substantial construction of new spaces and the delivery of new products to the market. Despite increasing vacancy and availability rates, the overall direct average asking rate across the region is stable. 

Although demand from smaller to medium-sized businesses remains strong, larger-scale requirements have decelerated, with large blocks of space coming to market. Looking ahead, all ongoing construction projects in the Sacramento market are expected to be delivered by early 2024, with new construction projects limited in 2024.

Market overview (CBRE Sacramento Industrial Figures Q3 2023

  • Inventory: 190,827,006 SF
  • Vacancy rate: 3.3%
  • Absorption:  17,501 SF (YTD through Q3 2023)
  • Key leases by tenant: HD Supply, E-Shipping, Tazza Brands, Telchert Electrical
  • Under construction:  1.6 million SF 
  • Largest submarkets: Power Inn Area, West Sacramento, Northgate/Natomas

Crexi Insights

These are the most recent industrial lease and sales trends from Crexi Insights (as of January 2024):

For Lease (active)

  • Asking rate/SqFt (median): $11 per year
  • Median SqFt/listing: 4,082
  • Days on market: 188
  • Total listings on Crexi: 398 spaces

For Sale (active)

  • Median asking price: $2.75 million
  • Price/SqFt: $210
  • Asking cap rate: 5.9%
  • Days on market: 154
  • Total listings on Crexi: 65

Sales Comps (past 12 months)

  • Median sold price: $1.65 million
  • Sold price/SqFt: $184
  • Total sales volume: $351 million
  • Sold cap rate: 6.4%
  • Median SqFt sold/transaction: 9,600
  • Total SqFt sold: 2.28 million 
  • Days on market (median): 155

Find Sacramento industrial space for rent.

Sacramento Office Market

The Sacramento office market has recently seen a surge in available Class A space outpacing the demand from occupiers, leading to a slight rise in overall vacancy rates. Lease rates remain steady across the board, with downtown being the most premium area, while submarkets like Citrus Heights/Orangevale offer more economical options. 

Although overall tenant requirements have declined, sectors such as non-profit, life science, and technology still show significant demand for office space.

Market overview (CBRE Office Figures Report Q3 2023)

  • Inventory: 52,739,436 SF
  • Vacancy rate: 15.2%
  • Absorption:  -748,832 SF (YTD through Q3 2023)
  • Key leases by tenant: State of CA: EDD, Maximus, County of Sacramento
  • Construction completions: 0 SF
  • Largest submarkets: Highway 50 Corridor, Roseville/Rocklin, South Natomas

Crexi Insights

Looking for the most recent insights into the Sacramento office market? Crexi Intelligence is your go-to source. The platform provides a comprehensive look at the city’s commercial real estate landscape, covering everything from recent property transactions to leasing trends.

For Lease (active)

  • Asking rate/SqFt (median): $22 per year
  • Median SqFt/listing: 2,560 SF
  • Days on market: 425
  • Total listings on Crexi: 1,869 spaces

For Sale (active)

  • Median asking price: $1.57 million
  • Price/SqFt: $176 
  • Asking cap rate: 6.8%
  • Days on market: 233
  • Total listings on Crexi: 117

Sales Comps (past 12 months)

  • Median sold price: $1.27 million
  • Sold price/SqFt: $182
  • Total sales volume: $336 million
  • Sold cap rate: 6.0%
  • Median SqFt sold/transaction: 6,202 SF
  • Days on market (median): 194

Find Sacramento office space for rent.

Sacramento Retail Market

The retail market in Sacramento has seen an expansion in retail spaces, such as the addition to Crocker Village Shopping. While leasing rates have slightly decreased overall, there’s a notable variation across different submarkets. 

Looking ahead, demand for Class A centers is expected to remain high, with prime location, quality co-tenancy, and well-capitalized landlords being key attractions. In contrast, less active B & C centers may attract cost-sensitive retailers and discount stores.

Market overview (CBRE Retail Figures Report Q3 2023

  • Inventory:  49,322,543 SF
  • Vacancy rate: 5.5%
  • Absorption: 89,479 SF (YTD through Q3 2023) 
  • Key leases by tenant: Burlington Coat Factory, Michaels Stores, The Cave
  • Under construction: 90,000 SF
  • Largest submarkets: Roseville, Laguna/Elk Grove, Citrus Heights/Fair Oaks

Crexi Insights

Lease and sales retail trends from Crexi Insights (as of January 2024):

For Lease (active)

  • Asking rate/SqFt (median): $19 per year
  • Median SqFt/listing: 2,071 SF
  • Days on market: 440
  • Total listings on Crexi: 1,340 spaces

For Sale (active)

  • Median asking price: $2.28 million
  • Price/SqFt: $293
  • Asking cap rate: 5.8%
  • Days on market: 212
  • Total listings on Crexi: 131 

Sales Comps (past 12 months)

  • Median sold price: $1.72 million
  • Sold price/SqFt: $315
  • Total sales volume: $730 million
  • Sold cap rate: 5.5%
  • Median SqFt sold/transaction: 4,956 SF
  • Days on market (median): 147

Find Sacramento retail space for rent.

Sacramento Multifamily Market

The Sacramento multifamily market is experiencing a resurgence in renter demand, albeit lagging behind the influx of new supply. The market has seen a significant increase in unit deliveries, with Central Sacramento being a prime area for new developments. 

As the market adjusts to these changes and demand continues its recovery, rent growth is anticipated to stabilize and return to a more typical rate. Predictions suggest that demand will slightly exceed supply, leading to a stable occupancy rate.

Market overview (Colliers Q3 2023 Sacramento Multifamily Market Report)

  • Total housing units: 955,796
  • Multi-unit inventory: 157,500 units
  • Vacancy rate: 5.6%
  • Average rent per unit: $1,974
  • Units under construction: 5,300
  • Units delivered: 759 (Q3 2023)
  • Units absorbed: 618 (Q3 2023)
  • Largest submarkets: South Sacramento/Elk Grove, Central Sacramento, Roseville/Rocklin

Crexi Insights

Here are the most recent multifamily insights from Crexi (as of January 2024):

For Sale (active)

  • Median asking price: $1.5 million
  • Price/SqFt: $320
  • Price/Unit: $237,000
  • Asking cap rate: 4.9%
  • Days on market: 124
  • Total listings on Crexi: 47

Sales Comps (past 12 months)

  • Median sold price: $595,000
  • Sold price/SqFt: $286
  • Sold price/unit: $265,000
  • Total sales volume: $489 million
  • Sold cap rate: 5.3%
  • Total SqFt sold: 1.68 million
  • Days on market (median): 83

Find Sacramento multifamily property for sale.

Learn more about the Sacramento commercial real estate market with Crexi Intelligence.

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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.

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