Sacramento Industrial Market Sees Rare Consecutive Quarters of Negative Demand

The Sacramento, California, industrial market recorded negative net absorption, or the difference in square footage occupied and vacated, in the third and fourth quarters of 2023. The region's market rarely sees consecutive periods of negative demand — it has only happened one other time since the 2011. That was in 2019, when market vacancy was just 5%, approximately 70 basis points below current levels.