Replacement Cost Rents Finally Return to Sacramento

WEST SACRAMENTO—Construction is set to begin by month’s end on a 379,161-square-foot industrial project in the Southport Business Park called LogistiCenter at Southport. Dermody Properties’ class-A industrial distribution facility demonstrates that replacement cost rents have returned to Sacramento and industrial is poised for growth, says Schaal Realty Advisors principal Tom Schaal, who has returned to his roots in West Sacramento.

“Replacement cost rents have finally come back to Sacramento, perhaps one of the last markets to come back in the country,” Schaal tells globest.com. “And, industrial is targeted to flourish post-COVID-19 because supply chain disruption has caused a need for more inventory storage. There will continue to be more e-commerce and manufacturing is going to come back to diminish US dependency on foreign manufacturing. Downtown and Midtown have come back in a big way and created a cool factor that has created a very positive vibe for Sacramento. This has attracted a young and highly educated workforce to the area.”