Sacramento Industrial Figures Q3 2026

The market continued its recovery in Q3 2026, posting a second consecutive quarter of positive absorption after significant occupancy losses earlier in the year. Net absorption totaled 723,000 sq. ft., following 909,000 sq. ft. in Q2 2026 and reversing the negative 1.29 million sq. ft. recorded in Q1 2026. Vacancy increased 20 basis points (bps) to 5.9%, while availability declined 30 bps to 8.2%. Average asking rents increased from $0.81 to $0.82 per sq. ft. on a monthly NNN basis. Construction activity remained ample, with 1.16 million sq. ft. under construction as of Q3 2026. Deliveries totaled 949,000 sq. ft., reflecting the completion of Costco's new distribution facility. Leasing activity remained robust at 2.73 million sq. ft.

Strong occupier demand continued to support market fundamentals during the quarter, generating positive absorption and lowering availability. Leasing activity remained elevated, indicating continued tenant expansion and relocation activity across the region. While vacancy increased modestly, sustained leasing demand suggests market conditions remained healthy overall.