When it comes to California, Silicon Valley and Los Angeles have long been hogging the glory. But the time has come to take a closer look at Sacramento ‒ state capital, growing Central Valley city with rising commercial real estate lending activity, and one of the largest metro areas in the country for job creation.
The northern section of California’s Central Valley has shown an increase in commercial real estate lending activity over the past two years, CrediFi found in a California CRE report released today.
The number of CRE loans originated from 2016 to 2018 rose 9% in the Sacramento metro alone, significantly more than nationwide lending activity in the same period, the report found.
The Stockton and Modesto metros, also part of the northern Central Valley, saw growth in the number of CRE loans originated in that period as well.
There are also other indicators of an upsurge in growth in the Sacramento area. These include job creation and population.
Sacramento is among the top three large U.S. metro areas where annual employment growth exceeded the 10-year average employment rate, Bloomberg reported in March. (The other two are Memphis and Las Vegas.)
In addition, the Sacramento region’s population growth is outpacing that of Silicon Valley and Los Angeles. The metro’s population growth rate was double the statewide rate from July 2017 to July 2018, partly because of Bay Area transplants.
“Drawn to the reasonable cost of living, abundant sunshine and ethnic diversity, young professionals and middle-class families are leading a population boom not seen since the Gold Rush,” U.S. News & World Report said about Sacramento. “Though it’s constantly overshadowed by cosmopolitan places in its own state, Sacramento is undergoing a transition, with technological and cultural developments breathing new life into the California capital.”
Download CrediFi’s report to learn more about CRE financing in California.