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Market Report

Sacramento Retail Market Report

2024 Investment Forecast

Vacancy in Sacramento Holds Near Typical Levels,
Which Continue to Range High Nationally

The metro’s retail sector enters 2024 in line with historical norms. Sacramento entered the year with one of the highest retail vacancy rates in the country; yet, the local metric has been relatively consistent since 2017, staying roughly between 6 to 7 percent. The single- and multi-tenant sectors are balancing to create this effect. Single-tenant vacancy has been high compared to other major markets, but was improving entering 2024. Meanwhile, properties with multiple tenants are performing better than usual as the sector matched its record-low rate exiting 2023. Limited new supply over the last half-decade has prompted many retailers seeking space to backfill vacated floor plans, like Grocery Outlet moving into a former 24 Hour Fitness space. Some other larger vacant spaces are slated for renovation, including the former Sears at Arden Fair Mall, potentially drawing tenants with modern upgrades. A high level of pre-leasing in this year’s pipeline will likely maintain consistent vacancy and benefit existing space.

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