November 2, 2026

Sacramento industrial is in better shape than it was a year ago. CBRE reported 723,000 SF of positive net absorption in Q3, the second quarter in a row of positive absorption after a rough start to the year. Vacancy is sitting right around 6%.

The headline numbers don't tell the whole story though. Larger warehouse users have options. The small business with trucks and equipment does not.

Over the last month we've been helping a local contractor look for their "forever home." The requirement is pretty typical for this market:

• About 20,000 SF, with 4,000 to 5,000 SF of office
• A half acre to one acre of fenced, paved yard for overnight truck and equipment parking
• Natomas to Roseville/Rocklin along I-80 and Highway 65, with McClellan and North Highlands also working

We looked at everything that came close. Some buildings had the right size but only 10,000 SF of yard. Some had the yard but were run down with no curb appeal. One checked most of the boxes on paper but had security issues on the street next to the yard. The options that fit best were new construction, deliverable 12 to 18 months out.

That gap shows up in pricing. Existing buildings with yard in North Natomas and McClellan are asking roughly $0.65 to $0.70/SF per month plus NNN. A planned new build in North Sacramento is quoting $1.50/SF on the building plus $0.25/SF on the yard, absolute net. On the sale side, Cushman & Wakefield reported Sacramento industrial sales averaged about $110/SF in Q3, but smaller infill buildings traded as high as $187/SF.

A few takeaways

• If you need space with a yard, start 12 months before you need to move. Be open to a build-to-suit, or to a bigger warehouse with less yard so some vehicles park inside.
• If you own a functional building with a fenced yard, you're in a good spot. Know your exact yard square footage, power, door count and clear height, because that's the first thing tenants and buyers ask about.
• If you're an owner-user thinking about buying, the cost of new construction is setting a floor under good older buildings. Waiting may not get you a better price.

If you're looking for industrial space with a yard, or own a building with one and are thinking about your options, give us a call.