Sacramento Industrial Trade Highlights Need for Infill and Smaller Units
Antelope West Industrial Park, a 101,944-square-foot, multi-tenant industrial property in Sacramento, has traded hands, highlighting its infill location, favorable lease structures and smaller units.
An unnamed private investor bought the property, with the seller not listed and CBRE facilitating the deal.
CBRE's Matt Post, Anthony DeLorenzo, Sammy Cemo, Rebecca Perlmutter, Todd Sanfilippo, Walter Smyth and Matt Susac represented the seller.
"We were pleasantly surprised by the number of interested parties and ultimately bidders," Post, first vice president at CBRE, told GlobeSt.
"In particular, there is an increasing number of 1031 buyers in the market and many of them want to purchase industrial assets."
The property's smaller suite sizes, staggered lease expirations and infill Sacramento location were important components of the investment opportunity.
Antelope West Industrial Park, built in 1990, comprises three buildings totaling over 6.1 acres. The buildings comprise approximately 46,444 square feet at 7307 Roseville Road, 41,100 square feet at 7321 Roseville Road and 14,400 square feet at 7337 Roseville Road.
Sacramento Market Defined By Stability
Overall, Sacramento's industrial sector looks steady. According to CBRE, the market recorded 723,000 square feet of positive net absorption during the third quarter, its second consecutive quarter of positive absorption.
Vacancy was 5.9%, while leasing activity totaled 2.73 million square feet. Average asking rents increased to $0.82 per square foot per month on a triple-net basis.
Cushman & Wakefield's Q3 report admitted that conditions remained challenging for Sacramento industrial landlords competing to fill larger warehouse and distribution properties, according to Cushman & Wakefield's third-quarter report.
Still, the CRE brokerage said that the regional industrial vacancy rate declined to 6.4%, down from 6.6% in Q2, while the market recorded positive net absorption of 208,318 square feet.
Year-to-date net absorption remained negative at approximately 485,233 square feet, reflecting the effects of earlier tenant departures and excess supply.
Leasing activity remained encouraging, particularly for established industrial properties and tenants seeking well-located distribution facilities.
Source: GlobeSt/ALM