Sacramento Retail Market Report

Local demand sustains positive trajectory. With a tenant mix focused on serving the local community rather than regional shopping districts, Sacramento has proven less vulnerable to high-profile store closures, as net absorption stayed positive in the 12 months ended June. Nevertheless, retail vacancy edged higher across infill areas like Citrus Heights, Arden and South Sacramento, where older stock and moderate turnover pushed vacancy near 8 percent. That said, leasing activity is brightening the outlook for these areas. In South Sacramento, over 300,000 square feet was leased in the first eight months of 2025 — nearly double its total for all of 2024. Third-quarter deals by a discount apparel store and adventure park, each for more than 30,000 square feet, highlight recent activity.