Sacramento Retail Market Report
Robust Consumption Puts Retailers on Solid Foundation as Multi-Tenant Investment Picks Up
Retailers resume space expansions in Sacramento. Retail sales surged over 20 percent last year, as falling unemployment and appreciating home values bolstered consumers' finances. The lift in spending boosted retailers' space needs, helping lower metrowide vacancy from a high of 7.3 percent in June 2021 to 6.5 percent by year-end. Availability continues to contract this year as strong net absorption occurs, particularly in Sacramento and Placer counties. Recent leases reflect pandemic influences. New fitness centers cater to clients resuming habits neglected during lockdowns, while home appliance stores meet the demand of new homeowners. More recent retail concepts are also taking on space. DoorDash will open two DashMart convenience stores in the metro, while specialty dessert brand Crumbl Cookies also expands locally.