Sacramento Freestanding Industrial
For Sale
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5801 88th St, Sacramento, CA
28,880 SF industrial building on 1.89 AC site.
Property Size28,800 SF
Lot Size1.89 Acres
Price / SF$152.60
Days on Market356
Property Features for 5801 88th St
General Information
Standard status
Active
Size
28,800 SF
Lot size
1.89 Acres
Property subtype
INDUSTRIAL
Listing Agency:
Kidder Mathews | Sacramento
(916) 504-2564
Listed By:
Peter Winterling · License #00992375
Source:
Moodyscre
Added: Sep 3, 2025
Changed: Aug 12
Last Checked: Aug 24 at 10:37AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Kidder Mathews | Sacramento
Investment Insights
Based on property information with market context.
The property features a freestanding building with a size of approximately 28,880 square feet, situated on a site of about 1.89 acres. It includes two yard areas and is zoned M-2. The building is currently fully leased with a new 5-year lease extension. The tenant, Natura, has occupied the building since March 2020 and operates a cannabis propagation facility as part of their approximately 290,000 square feet of facilities in the area. The tenant has made significant capital improvements to the building. The lease rate is below market, and the property is priced significantly below replacement costs. Financial details are available upon request. The property is located in Sacramento, CA.
Key Highlights
- Priced significantly below replacement costs
- Fully Leased with new 5 year lease extension. Tenant has occupied building since March 2020
- Tenant has significant capital improvements invested in the building
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$218,587
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.97%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,371,740
$4.4M
Cap Rate 7%
$3,122,671
$3.1M
Cap Rate 9%
$2,428,744
$2.4M
Market Conditions
NOI Build-Up for 28,800 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$331.8K $11.52/SF
− Vacancy
−$19.5K −$0.68/SF
EGI
$312.3K $10.84/SF
− OpEx
−$93.7K −$3.25/SF
NOI
$218.6K $7.59/SF
Area
Sacramento, CA
Vacancy
5.88%
Lease Rate
$11.52 /SF/Yr
Expense Ratio
30.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$4,371,740
Cap Rate 7%
$3,122,671
Cap Rate 9%
$2,428,744
Alternative Uses
Best Use
Industrial
$3.12M
$2.73M – $3.64M
NOI $218,587 @ 7.0% cap · market cap 4.97%
Second Best
—
—
no second resolved use
Theoretical Best
Specialty Retail
$7.74M
$6.77M – $9.03M
NOI $541,728 @ 7.0% cap · market cap 12.33%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
357
Businesses Nearby
Explore this area
Business Placement
Market
Vacancy Rate% for Industrial in Sacramento, CA
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Manufacturing property - 28,880 SF industrial building on 1.89 AC site.
Where is this manufacturing property located?
The property is located at 5801 88th St Sacramento, CA.
What is the asking price?
The asking price for this property is $4,395,000.
What are key features of this property?
This property features: Priced significantly below replacement costs; Fully Leased with new 5 year lease extension. Tenant has occupied building since March 2020; Tenant has significant capital improvements invested in the building
