Lodi is 35 miles south of Sacramento on Highway 99. Most Sacramento investors drive past it. The ones who stop find a real city with its own electric utility, a deep ag economy, and a buyer pool that is smaller than Sacramento’s.
Here are straight answers to the questions people ask first.
Who should I call for commercial real estate in Lodi?
Matt Bingaman is a Commercial Advisor with eXp Commercial (CA DRE #02139034). He serves Greater Sacramento and the Highway 99 corridor south to Lodi.
He works with:
- Sacramento-area investors and 1031 exchange buyers looking at Lodi
- Owner-users who want to buy their own building instead of leasing
- Lodi owners who want to reach buyers from outside Lodi when they sell
For local detail on the market, see Matt’s Lodi commercial real estate page.
Is Lodi a good place for an owner-user building?
For the right business, yes. Three things work in Lodi’s favor.
1. It is a real city with steady growth
- Population: about 69,100 (Census estimate, July 1 2025) | up from 66,348 in the 2020 Census
- Median household income: $88,530 (Census, 2020 to 2024)
- County: San Joaquin, not Sacramento
That last point matters. Property tax, permitting, and comparable sales all come from San Joaquin County. Do not price a Lodi building off Sacramento comps.
2. It sits on the main north-south freight route
The City of Lodi lists access to Interstate 5 and Highways 99, 12, and 88. It is 35 miles from Sacramento and 90 miles from San Francisco and San Jose. For a business that ships, services a region, or has crews on the road, that access is the point.
3. The ag economy creates steady demand
The Lodi AVA was recognized in February 1986. It has more than 82,000 acres planted to winegrapes and seven nested sub-appellations (Lodi Winegrape Commission). That acreage needs crush space | cold storage | bottling | equipment yards | distribution.
A building that serves that economy has a tenant base that does not depend on downtown foot traffic.
What does Lodi electric cost a commercial user?
This is the angle most Lodi market write-ups skip, and it can change the math for a power-heavy user.
Lodi runs its own electric utility
Lodi Electric Utility was established in 1910. It is a customer-owned, city-operated utility serving residential, commercial, and industrial customers (Northern California Power Agency). A business in Lodi city limits buys power from Lodi Electric, not PG&E.
What the rate comparison found
A study commissioned by the California Municipal Utilities Association compared utilities across the state. The Lodi News-Sentinel reported the results in February 2024:
- Commercial customers paid about 50% less in Lodi than with PG&E (May 2023 data)
- Industrial customer bills ran about 50% lower than PG&E
- Lodi sat in the middle of the pack against all California utilities studied
For a refrigeration, processing, or light manufacturing user, a utility bill that size is a real line item. Cutting it in half can matter more than a small difference in rent or price per square foot.
Incentives for new and growing businesses
Lodi Electric lists discounts on its Commercial Discounts page:
- New business discount: G1 rate customers get a $25 monthly credit | G2, G3, G4, G5, and I1 rate customers get 5% off per month | 12 months
- New jobs discount: 2% to 8% off, based on new full-time positions created | 12 months
- Community Benefits Incentive Discount: a separate program with its own application
How to use this in a real decision
- The 50% figure is from May 2023 data. Rates change. Get current rate schedules from Lodi Electric before you underwrite.
- Ask the seller or landlord for 12 months of actual utility bills.
- Compare total occupancy cost (mortgage or rent | taxes | insurance | power) across Lodi and your Sacramento options. Rent alone hides the difference.
Lodi for Sacramento 1031 exchange buyers
Many Sacramento owners selling income property look north and east first. Looking south on Highway 99 adds a second market with different pricing and a different buyer pool.
The rules that drive the search
- Both properties must be held for business or investment (IRS)
- Since 2018, Section 1031 applies only to real property (IRS)
- You have 45 days from the sale to identify replacement property (IRS)
- You must close within 180 days of the sale or by your tax return due date, whichever comes first (IRS)
The 45-day window is where most exchanges get tight. Adding Lodi to the search early gives you more properties to identify before the clock runs out.
See how Matt structures the search on the 1031 exchange page.
General information, not tax or legal advice. Matt is not a CPA or attorney. Talk to your CPA, attorney, and qualified intermediary before you sell.
What to check on a Lodi income property
- Tenant ties to the ag and wine economy: good for stability, but know the seasonality
- Hospitality and tasting room tenants: strong weekends, slower midweek
- Utility provider: confirm the parcel is inside Lodi Electric’s service area
- Comps: San Joaquin County sales only
For pricing, tenant review, and underwriting help, see investment sales.
Selling a commercial building in Lodi
Many Lodi properties have been held for a long time. The buyer who pays the most is not always local.
- Price on Lodi income and San Joaquin County comps
- Market to Sacramento-area investors and 1031 buyers who are on a deadline
- Put the power cost story in the marketing for any industrial or cold storage building
More on Lodi property types and pricing is on the Lodi market page.
Talk to Matt about Lodi
Looking at Lodi from Sacramento, for an investment or for your own business? Get a straight read on the numbers before you commit.
Call (916) 513-0217 | Book 15 minutes: calendly.com/bingamanrealty/15-min-consultation
Matt Bingaman | Commercial Advisor | eXp Commercial | CA DRE #02139034
This article is general information, not tax or legal advice. Matt Bingaman is a Commercial Advisor and a licensed California real estate salesperson, not a CPA or an attorney. Consult your own CPA and attorney before acting on anything here.