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Sacramento’s Industrial Rent Growth is Top in Nation

The industrial rent growth through the first two quarters of 2019 was nearly double the national average for rent appreciation at 10.7% but slightly lower than growth for 2018, an all-time historical high.

Container truck in ship port for business Logistics and transportation of Container Cargo ship and Cargo plane with working crane bridge in shipyard at sunrise, logistic import export and transport Logistics space posted the strongest increase as demand grows for e-commerce distribution space.

SACRAMENTO—The industrial rent growth in Sacramento ranked first in the nation through the first two quarters of 2019 and nearly doubled the national average for rent appreciation at 10.7%, according to Newmark Knight Frank’s I-80 Industrial Report. This figure is slightly lower than growth for 2018 (12.9%), which was an all-time historical high for the region.

Logistics space for warehousing and distribution has posted the strongest increase as demand for e-commerce distribution space continues to grow. During the past three years, average asking rents have risen from $0.40 per square foot per month triple net to $0.63 as of the end of last quarter, says NKF associate director Jeff Kvarme.

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Lisa Brown

Lisa Brown

Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.

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