The Sunrise/Highway 50 submarket encompasses 13.4 MSF of industrial inventory and 3.4 MSF of flex inventory, making it the fourth largest industrial/flex submarket in the Sacramento market. The submarket is located east of Downtown Sacramento and straddles Highway 50, providing easy access to the rest of the Sacramento region. The submarket area runs from Watt Avenue in Sacramento in the west to Prairie City Road in Folsom to the east. The area’s inventory is primarily clustered along Sunrise Boulevard with the remainder of properties around Mather Airport and north of Highway 50 along Horn Rd and Business Park Dr. There are many smaller construction, manufacturing, retail, and wholesale companies located in this submarket. With smaller buildings and less large occupiers in the submarket, the average industrial/flex tenant size is around 10,000 SF. The submarket is one of the most sought after in Sacramento with a 4.8% industrial/flex vacancy rate and one of the highest average asking rates at $0.74/SF NNN as of Q1 2020. There has been 112,000 SF of new industrial or flex inventory delivered to the submarket since 2015 with nearly half of that at Happy Lane Business Park.