Sacramento is undergoing a major transformation. Long defined by government infrastructure and agricultural roots, the city is now advancing toward becoming a diversified urban and industrial hub. From distribution centers in Metro Air Park to the long-anticipated Railyards development and Republic FC’s new stadium, Sacramento development is actively reshaping the future of California’s capital.
Sacramento Development is Reshaping the Region
Commercial and industrial growth across Sacramento is influencing how the region attracts businesses, talent, and long-term capital. The Railyards—one of the largest infill development projects in the country—is making visible progress. It includes plans for a new soccer stadium, housing, retail, and civic spaces. Republic FC’s stadium project is positioned to anchor a walkable district that links the central city with key transportation corridors and cultural hubs.
Simultaneously, submarkets like Natomas/Northgate and West Sacramento are driving industrial investment. Strategic logistics, affordability, and available space have made these areas essential to companies with regional distribution needs. Our Sacramento brokerage team remains actively engaged in guiding investors and occupiers as they navigate these high-growth districts.
Key Drivers of Sacramento Industrial Development
According to our Q2 Industrial Market Report, the region delivered 2.4 million square feet of industrial space in 2024, with 980,000 square feet scheduled to complete this year. An additional 1.3 million square feet remains in the construction pipeline. While this is a reduction compared to the 2021–2023 pace, critical projects continue to push forward.
Active Industrial Submarkets:
- Metro Air Park (Natomas/Northgate): Major tenants such as Amazon, Rivian, and Wheel Mart are now operational or signed. This submarket benefits from adjacency to Sacramento International Airport and streamlined logistics access. It also features ready-to-develop commercial land suited for retail and hospitality uses with I-5 frontage and high visibility from 102,000 daily vehicles.
- Sunrise Corridor (Rancho Cordova): With a new Amazon fulfillment center under construction, Sunrise remains an established industrial node.
- West Sacramento: Developers continue to invest despite higher vacancy rates, drawn by long-term fundamentals and improved infrastructure.
These areas support Sacramento’s industrial evolution through a combination of cost-effective land, workforce availability, and proximity to both I-5 and I-80.
Urban Growth Aligns with Industrial Demand
Population growth continues as residents relocate from higher-cost metros. This migration is shifting labor availability and commercial demand in favor of Sacramento. Companies like Sparkz and Pure Nature Foods have secured significant footprints for battery production and food logistics, respectively.
Aggie Square, the innovation district led by UC Davis, is bringing life sciences and advanced manufacturing to the region. These sectors require specialized facilities and a technically skilled labor force—two elements Sacramento is actively developing. The city’s growing ability to support biotech, clean energy, and R&D firms is no longer speculative.
Our development services support stakeholders with build-to-suit execution, entitlement navigation, and tailored strategies based on real-time market demand.
Step-by-Step: How to Evaluate Sacramento for Industrial Investment
If you’re assessing industrial opportunities in the Sacramento market, here is a practical 5-step approach:
- Identify the Right Submarket: Match property selection with logistics requirements. Metro Air Park and Rancho Cordova offer access to major transit corridors and modern facilities with high clear heights suited for distribution and warehousing.
- Review Occupancy Trends: Understand which building types (e.g., small-bay vs. large-block) are stabilizing or seeing increased availability.
- Assess Incentives and Infrastructure: Utilities like SMUD offer favorable energy solutions. Jurisdictional permitting and tax credits may further influence decisions.
- Track Real-Time Leasing Activity: Use current data to track tenant movements, especially expansions or consolidations.
- Work with Local Experts: Sacramento’s market dynamics vary block to block. Partnering with an informed team familiar with city-level regulations and timing is essential.
Sacramento Construction Projects on the Horizon
Overall construction activity has slowed from its recent peak, but the projects under way now are some of the most sizable and strategic developments in Sacramento’s industrial cycle:
- Amazon’s 629,000 SF facility in Rancho Cordova
- Multiple Metro Air Park buildings by Buzz Oates under development
- Trader Joe’s acquisition of a 442,000 SF distribution facility for $85M
While roughly half of buildings completed since 2023 remain available, those facilities offer the specifications required by today’s tenants: clear heights, dock access, and Class A amenities. The current vacancy rate of 6.5% sits below the long-term average of 9.4%, suggesting the market remains fundamentally sound.
Sacramento Development Continues to Draw Attention
Sacramento development is gaining attention from institutional investors and occupiers due to a clear set of advantages. Its location between the Bay Area and Central Valley supports regional supply chains. Infrastructure continues to improve, and the labor market is expanding across multiple sectors.
The blend of urban revitalization and industrial expansion makes Sacramento increasingly competitive among Tier 2 markets. Growth is being led not by speculation but by strategic, data-backed investment.
Browse our available listings or connect with our team to explore industrial and commercial opportunities in Sacramento. Capital Rivers Commercial is your local partner for strategic real estate investment.
