… grow with it; and West Sacramento, California is growing.
Sure, Sacramento has a lot of great things going for it. There’s the McKinley Park venture, turning a 48 acre infill along the American River into 330 homes, nearly 1,500 jobs and a purported $207 million economic benefit. There’s also the newly approved downtown arena project for the NBA’s Sacramento Kings to move into, promising to bring a jolt of life into the downtown experience and business landscape.
And yet, although not as intriguing to the casual observer as its neighbor, the State Capitol, West Sacramento has been keeping just as busy. The Bridge District, a residential development of over 1,000 units nearby Raley Field where the Pacific Coast League’s Sacramento Rivercats call home, is going up on recently cleared industrial land with restaurants, stores and cafes soon to follow. There’s the West Sacramento riverfront Marriott and conference center that, though currently on hold, is primed to take advantage of the region’s expansion along the Sacramento River. Spearheading the economic development for the region through a balanced approach to responsible business expansion and industrial growth, the oft-overlooked city of West Sacramento stands to be an enticing and attractive site for local businesses as well as for businesses new to the area.
Don’t believe me? See for yourself (click to enlarge):
As demonstrated by the table above (courtesy of CoStar’s Q2 Industrial Report), West Sacramento sports one of the lower Vacancy Rates in the Sacramento region and a healthy Net Absorption thus far in 2014. This basically means more tenants are moving in than there are moving out and the rate by which space is becoming available is lower than in just about all of the competing sub-markets; and the 250,000 square feet that is under construction promises more space is soon to be delivered to sate that demand. Due to West Sacramento’s industrial sector size and total number of deliveries, it is safe to say that West Sacramento is one of the more attractive targets for investors who are looking for qualified, stable tenancy in an area with as much room to expand as West Sacramento possesses.
The graph below reinforces the optimism by highlighting the trend of decreasing vacant space in this sub-market.
So why is West Sacramento so enticing?
The West Sacramento industrial park is saddled between the Sacramento River and the Port of Sacramento Deep Water Ship Channel, close to all major freeways and thus provides great access, flexibility and functionality for regional business. Additionally, its close proximity to Downtown Sacramento allows for a convenient spillover of commercial and retail interest along the West riverbank.
And perhaps more relevant, Yolo county boasts a lower Ad Valorem Property Tax (levied at the time of real estate property transactions), doesn’t impose a Utility User Tax (whereas Sacramento County checks in at 2.5%) and sports a slightly less sales tax (Sacramento County adds half a percent to the state tax of 7.25%)…. so you can imagine why an investor would look to West Sacramento.
The Sacramento region’s business landscape is growing and there’s never been a better time to be a part of the action.
Just don’t overlook West Sacramento.