Commercial Real Estate Market in Merced, CA
Updated monthly: sale, lease, property records, location trend, and more… · Last update: September 30
209 active listings and 1,585 off-market properties in Merced, CA. Commercial property asks $179/SF to buy and $16.55/SF/Yr to lease.
Market Trends
Merced, CA spans 257.8 square miles in Merced County, California. Figures below refresh monthly; last updated 30 September 2026.
Office
Office vacancy in Merced, CA runs 20.8% across the West region in 2025, up from 11% in 2019.
Vacancy Rate % in West region
Retail
Retail vacancy in Merced, CA runs 5.8% across the West region in 2025, down from 7% in 2020.
Vacancy Rate % in West region
Industrial
Industrial vacancy in Merced, CA runs 7.9% across the West region in 2025, up from 3.7% in 2019. Nearly 3.2x the 2022 low of 2.5%.
Vacancy Rate % in West region
Multifamily
Multifamily vacancy in Merced, CA runs 8.6% across the West region in 2025, up from 7% in 2022.
Vacancy Rate % in West region
Zoning & Land Use
Land Use Mix share of zoned land by category
- Residential 41.8%
- Planned_development 24.2%
- Industrial 16.9%
- Agricultural 10.7%
- Commercial 5.9%
Largest Zones share of zoned land by district
Low Density Residential
Planned Development
Restricted Agricultural
Heavy Industrial District
Light Industrial District
Heavy Industrial District (I-H)
Structures located in the I-L and I-H zoning districts, which are subject to site plan review permits (Section 20.68.050 ) instead. 2. A legal description of the area subject to design review permit approval can be found in City Council Ordinance No. 2409 approving Zoning Ordinance Amendment No. 13-01 on June 17, 2013. Figure 20.68-1 Design Review Boundaries…
Market overview
Demographics & Economy
Merced, CA has 106,866 residents in 35,057 households. Density runs 415 people per square mile. Median household income here is $61,652 and median gross rent $1,291 a month.
106,866
Population
35,057
Households
3
Avg Household Size
31
Median Age
18%
College-Educated
77%
High-School Grad
257.8 sq mi
ZIP Area
415
Density / Sq Mi
$61,652
Median Household Income
$35,882
Median Earnings
$1,291
Median Rent
$345,889
Median Home Value
Tools
Lease vs Buy Breakeven
At $16.55/SF/Yr lease vs $179/SF buy → buying wins if held > 1.6 years.
At a 9.3% gross asking yield the payback reads short relative to leasing. Assumes 30% down at 6.5% fixed, 2% a year in taxes and upkeep, 3% appreciation, 5% opportunity cost, 2% closing plus 5% selling costs, and a 3% annual rent escalator.
Frequently Asked Questions
What is the average price per square foot for commercial property in Merced?
Commercial property in Merced, CA asks an average of $179 per square foot.
How much does it cost to lease commercial space in Merced?
Asking lease rates in Merced, CA average $16.55 per square foot per year.
Is it cheaper to lease or buy commercial space in Merced?
Buying beats leasing in Merced, CA if the property is held longer than 1.6 years, comparing $16.55/SF/Yr asking rent with $179/SF asking price. The model assumes 30% down at 6.5% fixed, 2% of value per year in taxes and upkeep, 3% appreciation, 5% opportunity cost on the cash and a 3% annual rent escalator.
Where does Realmo's Merced market data come from?
Realmo compiles Merced, CA figures from 5 recent recorded sales, 149 active sale listings, 60 active lease listings, 1,585 tracked off-market properties, the current Merced zoning release. Sale and lease figures refresh monthly; vacancy annually. Last updated 30 September 2026.
Methodology & data sources
- Asking prices and averages
- Computed from 149 active for-sale and 60 active for-lease listings in Merced, CA. These are ASKING figures from live listings, not closed-transaction prices, and a segment carried by a handful of listings reads as indicative rather than an average.
- Vacancy rates
- Published per-sector market series, taken at the metro level where one exists and otherwise at the Census-region level — a chart reading "in <region> region" is a regional number, not this city's.
- Zoning and land use
- The current municipal zoning release: 14,963 zoned acres across 24 districts. Shares are of zoned land, so parcels the release leaves unclassified are excluded from the mix.
- Refresh
- The monthly aggregates close at the end of the previous month, so 30 September 2026 — not today — is the honest last update.
- Known limitations
- office vacancy is reported at West region level, retail vacancy is reported at West region level and industrial vacancy is reported at West region level.
- Coverage
- Metrics below the 10-observation threshold fall back one geographic level. The geography used is named on each figure.
Compiled by the Realmo Data team · reviewed 30 September 2026 · How Realmo checks market page data · Report a data issue
