Sacramento Industrial Market Sets Records in Sales Volume, Net Absorption

Industrial fundamentals have been strong in Sacramento, California, for years. The vacancy rate has been below 6% since the beginning of 2018, while net absorption, the difference in square feet between the number of tenants occupying space and the number of tenants vacating space, has been positive for the past 11 years, reaching a record 7.8 million square feet in 2021. More recently, the region has been rife with new construction, with more than 3 million square feet in both 2020 and 2021 with another 4.4 million expected to be completed in 2022. Sales volume in the region was depressed and had only exceeded $1 billion once prior to 2021, during which the figure ballooned to $1.4 billion, the highest ever recorded.