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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Bud Applegate

Senior Vice President

Sacramento

As an industrial specialist, I can advise my clients on their real estate challenges and provide solutions because I have been there. With 17 years’ experience in the trucking and warehouse distribution industry, I understand the nuts and bolts of your business. Acting as a real estate advisor is much more than understanding the market. Having an appreciation for your business goals, drivers, and challenges, allows me to help you make highly informed decisions. This has led to long-lasting relationships with my clients built on trust and respect. My 30 years of commercial real estate experience have allowed me to see both sides of a deal leading to real estate solutions that make business sense for both landlords and tenants.

Throughout my career, I have dedicated myself to mentoring young brokers - six are now competitors in our market. Since 2013 I have mentored my nephew Spencer in his journey to specialize in the Greater Sacramento industrial market.  Mentorship has been one of the most fulfilling aspects of my career. Together, Spencer and I provide a balanced combination of energy and knowledge to find creative solutions for the real estate challenges you face.

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Spencer Applegate

Associate

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

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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

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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

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 an Associate within our industrial department, I advise property owners and industrial tenants by providing market intel and analysis. I specialize in the leasing and sales of industrial properties throughout the Greater Sacramento Area including areas such as Power Inn, Natomas, Highway 50 Corridor, Placer, Sutter, and Yuba counties. Leveraging my experience as a Research Associate with Colliers, I offer an intricate knowledge of our submarkets and understanding of the policies and ordinances that effect industrial property use. Whether you’re an investor hoping to reposition an asset for sale 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 go-getter attitude.

I started my career in commercial real estate after successfully starting a successful ecommerce business which is still in operation today. Having owned and operated a small business allows me to identify with with my clients and the challenges they face with their own business.  Prior to that I spent 4 years managing large scale projects for The Conco Companies, 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 strategy to overcome them

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

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Steve Cippa

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Steve is a Senior Vice President with Colliers International’s Sacramento office. As a thirty-nine year industrial real estate broker, Steve has been involved in over one billion dollars’ worth of real estate transactions.

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Steve was with Colliers International Sacramento from  1999 through 2006.  He joined us again in 2011.

  

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Tom Tyer

Executive Vice President

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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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