Population
528,478
Growth (5Y)
+8.3%
Median Income
$65,000
Metro GDP
$147B
Market Overview
Sacramento has emerged as one of California's most compelling NNN investment markets — offering meaningfully higher cap rates than Los Angeles or the Bay Area while retaining the same investment-grade corporate tenant guarantees. The market benefits from a dual employment anchor: California state government (100,000+ jobs in the region) and a growing private sector drawn by costs far below the Bay Area. NNN assets trade at 5.25–6.75%, representing exceptional value relative to coastal California alternatives.
Key Highlights
California's capital city with a stable, government-anchored employment base
Major Bay Area spillover — remote workers and companies relocating from SF for affordability
UC Davis and state government create an unusually stable, recession-resistant consumer market
Cap rates significantly higher than coastal California with similar tenant credit quality
How the Market Has Evolved (2020–2025)
Sacramento's NNN market transformed dramatically from 2020 to 2025. The pandemic triggered a wave of Bay Area migration to Sacramento — housing prices surged 40%+ from 2020–2022 as remote workers relocated en masse, bringing consumer spending power with them. This migration wave attracted major national retailers to Sacramento submarkets that had been underserved, with Starbucks, Chick-fil-A, and Dutch Bros aggressively opening drive-thru locations. Cap rates that ranged from 5.75–7.0% in 2020 compressed to 5.25–6.75% by 2025 as institutional investors recognized Sacramento's improved demographic profile. The Roseville, Elk Grove, and Folsom submarkets saw the most new NNN development activity.
Why Invest in Sacramento
- 1California quality with Secondary market cap rates — best risk-adjusted yield in the state
- 2Government employment base provides extraordinary economic stability
- 3Bay Area migration trend continues driving consumer spending and retail demand
- 4Highly liquid secondary market with strong institutional and private buyer demand
Recent NNN Activity
"Q1 2025 saw active NNN transaction volume across the Sacramento metro, with drive-thru QSR assets in Roseville and Elk Grove trading at 5.25–5.75%. Dollar General and Family Dollar continue expanding in Sacramento's suburban fringe. Starbucks drive-thrus in Folsom and Rancho Cordova traded at 5.5–5.75% cap rates."
NNN Snapshot
Cap Rate Range
5.25% - 6.75%
Price Range
$1.8M - $4.5M
Avg Lease Term
12 Years
Unemployment Rate
4.2%
Active NNN Tenants
McDonald'sStarbucksDollar GeneralCVS Pharmacy7-ElevenAutoZoneWalgreens
Major Employers
State of CaliforniaUC Davis HealthSutter HealthIntelAppleKaiser Permanente
Find NNN Properties in Sacramento
Our advisors have exclusive, off-market NNN inventory in the Sacramento market right now. Contact us to see what's available before it hits the public market.