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2020 Q2 Sacramento Industrial Market Report

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After a temporary pause in market activity due to business closures and a wave of tenant rent relief requests in April and May, Sacramento’s industrial market picked up where it left off and posted a strong second quarter overall. The industrial market vacancy rate remain unchanged from the first quarter and 2020 year-to-date net absorption is up 122,653 square feet through the first half of the year. Robust leasing activity in the second quarter despite current economic uncertainty is revealing the true durability of industrial property. New leases signed from expanding and new to market tenants, in addition to 1.7 million square feet being occupied by Amazon and Walmart combined this year, will place downward pressure on vacancy through the remainder of the year. Though some new developments have delayed construction starts over the last three months, 232,596 square feet of new development broke ground this quarter. At least 2.5 million square feet of under construction product will deliver in the second half of 2020 as recently delivered speculative development continues to lease up. Look for additional large scale speculative developments to break ground in Metro Air Park and Southport by mid-2021.

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2020 Q2 Sacramento Industrial Market Report

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Related Experts

Andrea Nelson

Associate

Sacramento

As an Industrial Advisor with Colliers, I have a deep knowledge of the local market and current trends which allow me to better serve my clients.  

Before coming to the Commercial Real Estate industry, I spent 15 years in sales and education for an international supplement manufacturer.  I focused on educating retailers and business owners, helping them achieve higher profits and an increased knowledge base to help them strengthen the relationships they had with their customers.

I pride myself on working hard and the success I bring to my clients.  I listen to the needs of my clients and put their best interests first.  I think like an owner. Whether you own a business or a property, I will prioritize finding the best opportunity to create a more profitable outcome for you. I’m committed to achieving the best results for each and every deal

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Spencer Applegate

Senior Vice President

Sacramento

I grew up in the family trucking business - working on the docks and in the dispatch office.  I enjoyed understanding the supply chain and how everything ended up on our table. After being immersed in this world throughout my childhood, I decided to study Regional Development and Geographical Information Systems (GIS) at the University of Arizona. Following my graduation, my uncle, who has +25 years’ experience in commercial real estate, agreed to become my mentor.

Together, Bud Applegate and I help industrial property owners and industrial tenants from Sacramento to Marysville make informed real estate decisions in this dynamic and changing market. Every deal has its own unique challenge. Communication is key to ensuring I understand my client’s business goals, both long and short term. As an advocate for my client, I take on the stress of a relocation or finding a new tenant. My commitment to your goals and thorough analysis of your business needs allow me to position you for success. I afford each client relationship and real estate transaction the same attention, care, and commitment that I would apply if working with my own family and their business.

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Hannah Crandall

Transaction Manager

Sacramento

As a transaction manager, I recognize the most favorable and profitable strategies to maximize negotiation leverage and win the best economic terms for my clients, as well as position the assets for the highest returns should they choose to sell.

Having spent the last decade in the real estate industry, progressing from traditional residential transactions, distressed asset acquisitions, appraisal, and commercial real estate, I understand how to value investment properties from a multi-faceted approach. This unique background positions me to specialize in leasing and sales of industrial product with an emphasis on Landlord representation, acquisitions, dispositions and market analysis.

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Matt Lofrano

Executive Vice President

Sacramento

Industrial property owners throughout the Western region rely on Matt’s accountable, communicative, and forward-thinking approach to develop successful marketing and leasing strategies. From initial marketing campaigns through the successful sale or lease negotiations of their assets, Matt directly handles every aspect of the transaction cycle for the projects he is involved with. This experience has allowed him to also be an asset to the region’s institutional landlords as a consultant for new development. Matt focuses on the delivery of service excellence by leveraging his +20 years of market knowledge, offering consistent communication, and anticipating needs. His deep understanding of the challenges his clients face has proven to be instrumental in many completed lease & sale transactions and development projects.ough market insight, consistent communication, and a deep understanding of the challenges his clients face has proven to be instrumental in many completed lease & sale transactions.

Prior to re-joining Colliers as Executive Vice President, Matt served for eight years as Executive Vice President at JLL, ten years as a Senior Vice President in the industrial department at Colliers International, and three years at CB Richard Ellis.

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Mark Demetre

Executive Vice President

Sacramento

Throughout my tenure in commercial real estate, I have specialized in advising property owners in the marketing of their industrial assets for lease and sale. This has included several major industrial developments, to potential prospects throughout the nation. I called Colliers home from 1999 to 2010 and am excited to be back. Over the last 20 years, I have averaged more than 125 transactions per year and sold or leased over $1 billion in industrial transactions.

Having been entrenched in the Sacramento commercial real estate market since 1985, I have developed rapport with the community’s brokers, developers, landlords, and tenants. The Colliers and SIOR network allow me to connect with other experts throughout California & the United States and leverage their expertise. This collaboration is key to providing exceptional service to my clients. By fully understanding your goals, I can bring the right team together to provide customized solutions for your evolving needs.

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Michael Hoo

Associate Vice President

Sacramento

Industrial tenants and investors rely on me for my thoughtful and honest advice about the Sacramento real estate market. With my partners, who primarily focus on landlord representation, I provide the complementary services of tenant advisement and investment sales. I help my clients make highly informed decisions by providing strategic connections between the many data points surrounding real estate decisions and translating them into an actionable strategy.

After finishing my collegiate baseball career at Cal Poly, San Luis Obispo, I pursued my MBA. While working to complete my graduate degree, I found a passion for underwriting deals and it was then I knew real estate was the career for me.  Throughout my athletic and academic careers, I learned valuable lessons about teamwork, hard work, and perseverance which have guided my professional growth. 

I consider myself a lifelong student and enjoy any opportunity to learn something new.  By obtaining a deeper understanding of my clients' goals, I look beyond the short-term and position my clients for long-term financial and business success.

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Spencer Bones

Vice President

Sacramento

As Vice President within our industrial department, I advise property owners and industrial tenants by providing market intel, financial analysis, and creative strategy. I specialize in the leasing, disposition, and acquisition of industrial properties throughout the Greater Sacramento Area including Power Inn, Highway 50 Corridor, and Placer, Sutter, and Yuba counties. I offer an intricate knowledge of our submarkets and understanding of the specific policies and ordinances that affect progressive industrial property use. Whether you are an investor hoping to reposition an asset or a manufacturing company looking to expand to the Sacramento area, my clients partner with me because of my energy, determination to get the job done, and track record of success.

I started my career in commercial real estate after developing and operating a successful eCommerce business. Prior to that I spent 4 years with The Conco Companies managing large scale projects including the Sutter Health hospital in Sacramento and over $20 million in improvements to the Stanford Linear Accelerator.  My project management and eCommerce experience allow me to provide a unique perspective to my client’s challenges and develop a strategy to overcome them.

Outside of the office, you can find me spending time with my family. I am a licensed pilot and enjoy being outdoors.

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Tom Tyer

Executive Vice President

Sacramento

Since starting my commercial real estate career with Colliers International in 1987 I have helped clients with all aspects of their industrial real estate. I have also assisted many quality companies that have been refered to me by Colliers and SIOR associates, In the last decade, I have been involved in almost 500 industrial transactions totaling over 7 million square feet.

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Tommy Ponder

Executive Vice President

Sacramento

As executive vice president in Colliers’ Sacramento office and market leader, my team specializes in sales and leasing of industrial product primarily in the greater Sacramento region.  Colliers’ unique and collaborative culture gives me the ability to service accounts across the Western United States. 

I began my career in industrial real estate in 2003 after owning and operating a business in the Czech Republic. Running a business in a foreign country was both challenging and exhilarating.  The experience helps me connect me with business owners and decision makers regionally and at institutional and corporate levels.  It is the partnerships and personal connections with each owner-user, tenant, and landlord, that drives me to form lasting relationships. I pride myself on always putting the needs of my clients first, treating each deal as my top priority with integrity, energy, and attention to detail.   

Bringing value to my client’s real estate transactions is key, however, it’s very satisfying knowing their experience with me and my team will make a lasting impression. I pride myself on always putting the needs of my clients first and treating each deal as my top priority.

In my free time, I enjoy the outdoors with my wife, two children, and dogs. My all-time favorite reset buttons include racing motorcycles in the cross-country AMA D36 series and coaching little league.

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Nathan Miller

Senior Associate

Sacramento

My clients rely on me to provide information and advice that keeps their profitability in the forefront, while holding true  to the highest degree of integrity. With my partners here at Colliers, I am able to leverage a broad range of both experience and industry-wide knowledge to better my degree of service. 

Having been born and raised here in Sacramento, I have a passion for local business growth and overall economic success. My fascination for real estate started with a locally based,  and prolific development company. I learned underneath both the Asset Management and Development arms of the firm as I was exposed to various types of large scale industrial and office projects. After the completion of my degree, my entrepreneurial drive funneled me into brokerage. I spent the next year learning the ins and outs of the brokerage business, and the Sacramento market, as I studied in a research roll with Colliers International. When the opportunity presented itself, I made the decision to specialize solely in the Industrial  product type. 

To me, brokerage is a long-term opportunity and challenge. It  requires building trust, and providing value to clients so that ultimately, they can see success in their business. Sacramento is proving to be an exciting place to be for the long-term;  and I look forward to the opportunity to both benefit and grow with my client's as new challenges arise.  Please do not hesitate to reach out to me for any of your business  or real estate needs. 

 

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