Question 1

What are the different types of commercial real estate?

Accepted Answer

Commercial real estate is a broad category that includes a high variety of space types designed to meet the needs of various industries of the local economy and their specialized subsectors, as presented in our real estate 101 guide to types of commercial real estate. However, there are three main categories that you are most likely to come across: office, retail, and industrial space.

Modern office space is typically organized over large floor plates bound by high ceilings and large windows for an abundance of natural light and is located in transit-oriented developments with good access to multiple modes of transportation, so as to facilitate employee commute. The Sacramento commercial real estate market incorporates 55,121,804 square feet of office space across 618 buildings.

Office buildings can also accommodate coworking spaces, which are shared office options that typically cater to the needs of small, startup businesses that require flexible workspaces, a concentration of amenities, and services that can be accessed on an occasional or short-term basis. In Sacramento, the coworking segment of the commercial real estate market incorporates about 26,590 square feet.

Retail space includes shopping malls, department stores, street retail, or specialty stores dedicated to a narrow range of products. Such properties are typically located in high foot-traffic and/or car traffic areas, to facilitate customer access. The Sacramento commercial real estate market includes 20,541,394 square feet of retail space in a variety of settings.

Industrial property most often serves businesses operating in manufacturing or logistics and generally consists of large open spaces located within good access to roads, railways, freight airports or regional water ports. Industrial space listings can include warehouses, manufacturing plants, distribution centers, flexible industrial space, or even data center facilities. Across the Sacramento market, there is a total of 65,648,581 square feet of industrial property.

Question 2

What types of commercial real estate are available in Sacramento, CA?

Accepted Answer

The largest share of commercial real estate space for lease in Sacramento is represented by Industrial space, which accounts for 12,652,806,349 square feet of available listings. Retail space available in Sacramento adds up to 7,846,257 square feet.

Question 3

What factors affect the price of commercial real estate in Sacramento, CA?

Accepted Answer

The price of renting or buying commercial real estate is influenced by a variety of factors, including: the property type (for example, office space is priced higher than other property types in most locations); the condition and asset class rating (property rated class A or above will typically command a higher price than lower grade classifications); the quality or the development potential of the property location; whether or not there is high demand for the type of commercial asset in question; and what the state of supply is relative to demand.

Question 4

What is the average rent for commercial space in Sacramento, CA?

Accepted Answer

The average rent for commercial real estate space listed for lease in Sacramento is $21.51 per square foot. However, this value does not offer enough perspective on its own, as you will find significant variation in prices across property types, property classes, and location, as well as other impacting factors. For instance, rent per square foot of office space in Sacramento can vary greatly depending on the rating of the property from Class A to Class C, as well as across the city depending on the location of the asset. What’s more, each commercial property type makes its own rent market: while the average rent for office space rested at $26.58 per square foot, industrial space in Sacramento saw average rents of $11.35 per square foot.

Question 5

What are the best areas for commercial real estate in Sacramento, CA?

Accepted Answer

The best choice of location for commercial space depends on the factors that are most relevant to your business. A good thing to look for at the start, however, is the areas of the city that have the highest concentration of your preferred type of property, as these areas are generally well connected to the amenities and points of interest that are most relevant to each property type.

As such, there are several areas that you could consider to be the best location for commercial real estate in Sacramento, depending on the property type you are interested in. The highest concentration of commercial space listings of any kind in Sacramento is in the Downtown Sacramento neighborhood. But if we look at each commercial property type, we find that for office space, the best location is the Downtown Sacramento area.

Meanwhile, retail space opportunities are most abundant in the Downtown Sacramento submarket. Alternatively, if you are looking for warehouse or other industrial space, consider looking at listings in Depot Park.

Select your preferred property type from the search filters menu at the top of the search page and then navigate the interactive map for a better view of commercial real estate availability in the locations most suited to your needs.

Question 6

How do I find a good commercial real estate broker?

Accepted Answer

Whether or not leasing commercial space is a new experience for you, there are significant benefits to working with a commercial real estate broker. In addition to saving you time and money, an experienced broker will contribute specialist knowledge of the local market, the property type you need representation for, and will handle negotiations on your behalf in your best interest.

To start, it is important for you to have a good understanding of what kind of broker you need. For instance, there are differences between a tenant broker and a listing broker. Also important at the start is to have a clear idea of what kind of space (or tenant) you are looking for and what (if any) particular needs and requirements you might have. And, while it is good to get a referral, you should interview several brokers to better gauge who you feel would best represent your interests.

CommercialCafe hosts listings from some of the most trusted commercial real estate brokerages in the country. Use the contact form available on each listing page or the contact details for the property representatives to reach out and start your search!

Question 7

What is the most profitable commercial real estate?

Accepted Answer

The profitability of a commercial real estate investment depends on a multitude of factors working together. These factors include the quality of the asset itself — which itself includes aspects such as location, property class, amenities, and the quality of the property management — to the local market conditions, the state of the local economy, the demand for that particular type of commercial property, and of course the costs of owning and maintaining it relative to what leasing rate or sale price you get from the property. Asking rents in the city went as high as $36 per square foot. In particular, the property type commanding the highest lease rates in Sacramento was Office space.

Conversely, the highest sale price last year was $55,100,000 that is located at 925 L Street.

Question 8

What is the average size of a commercial property in Sacramento, CA?

Accepted Answer

The average size of a commercial property in Sacramento depends greatly on the property type and the location — geographical possibilities and zoning allowances have significant influence on how big developers can build. While there are outliers that break height or volume records in the city, we can look at some average sizes by property use:

In Sacramento, the average size of an office property is 99,858 square feet.
Retail properties here incorporate an average of 75,243 square feet.
Industrial space in Sacramento is in buildings that are, on average 195,966 square feet in size.

1,430 Commercial Real Estate Listings in Sacramento, CA

The Promenade at Sacramento Gateway - Ashley Home Store

Norwood Industrial Park

The Forum Building

5237 Walnut Avenue

Center 57

R Street

1300 National Drive

630 K Street

1330 Florin Road - Land

Interstate Business Park | 1227 Striker Avenue

Crown Corporate Center

City Gate Plaza

7919 Folsom Blvd

4690 Freeport Blvd

Watt-Fair Oaks Professional Center

1851 Heritage Lane

2250 Del Paso Road

REA Bldg

1225 8th Street

4630 Beloit Drive

Chippendale Office Park

1800 3rd Street

6000 & 6001 Power Inn Road

University Office Park | 7 Parkcenter Drive

California Sutter Building

The Promenade at Sacramento Gateway

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