Sacramento Industrial Market Report

Sacramento well positioned ahead of lull in new supply. An average of 3 million square feet of space was added across the metro during each of the last five years, a supply influx that lifted vacancy to its highest level since 2016. The metro’s low-7 percent rate as of March, however, is still more than 200 basis points below its long-term mean, placing Sacramento in a favorable position heading into the second half. Rising vacancy has also catalyzed a pullback in development activity, with less than 300,000 square feet slated for addition this year. The lack of supply-side pressure should aid newer built, vacant properties in attracting tenants in the near term. While ongoing construction is minimal, the Airport South Industrial Project in North Natomas completed its regulatory process in March, potentially clearing the way for a sizable light industrial park in the future. This space may be warranted as Sacramento International Airport registered a nearly 14 percent year-over-year rise in cargo handling volume last year, with the January-February 2026 total up 30 percent annually.