Sacramento Retail Market Report

Economic catalysts drive retail leasing across the metro. Despite elevated store closures in 2024, the metro’s retail vacancy stayed largely stable, as leasing activity surged to a post-pandemic high. Sacramento County is set to sustain strong tenant demand after recording the only vacancy decline last year. Opening in spring 2025, Aggie Square — a new public-private innovation district near the UC Davis Medical Campus — will serve as an incubator for medical and tech firms, driving job creation. Meanwhile, the Athletics’ relocation to Sutter Health Park through 2027 should boost tourism and foot traffic in nearby downtown, prompting retailers to expand. Last year’s record multifamily absorption will also fuel retailer demand, particularly among health and grocery tenants. Outside the urban core, affluent residents and steady household formation should draw businesses to Placer County, where vacancy is more than 200 basis points below Sacramento County. Bosch’s planned $1.9 billion semiconductor plant in Roseville should further accelerate demand for local retail space.