McClellan Distribution Center is a 417,000-square-foot class-A distribution warehouse building.

SACRAMENTO—The local economy remains strong with signs of continued expansion across all major industries. The metropolitan area added nearly 19,000 positions during the past year, a trend that is expected to continue in the coming quarters, according to a mid-year report from Cushman & Wakefield.

Significant job growth is expected in the construction industry with experienced trade labor needed due to major developments in the multifamily, single-family and industrial markets. This has been driven by the fact that Sacramento has become a prime spot for relocations from the Bay Area, drawn by the lower cost of living with a comparable quality of life.

Occupier demand continues to drive strong net absorption numbers which reached 854,000 square feet during the quarter, with the mid-year figure hitting a record 2.7 million square feet. Much of the quarterly activity was attributed to construction completions, resulting in a 10 basis-point decrease in the vacancy rate to 4.4%, a new market low, says the report.