Sacramento Industrial Market Positioned To Weather Economic Slowdown

As economic concerns grow, industrial fundamentals remain strong in Sacramento, California. The vacancy rate is below 4% as asking rents continue to increase by more than 8% year over year. Meanwhile, net absorption, the difference in square feet of the number of tenants moving into and out of the space, has exceeded 1 million square feet in seven of the past nine years and has already surpassed 2.4 million square feet year to date. However, rapidly increasing interest rates and widespread predictions of an upcoming recession leave worries of potential vulnerabilities.