Migration Quickly Brings Back Sacramento Retail Market

Sacramento, California’s retail market was hit hard by the pandemic as vacancy grew steadily until the second quarter of 2021, when it peaked at 6.4%. Since that time, demand has been strong, with net absorption, the difference in square feet between the amount of tenants moving in and out space, seeing the strongest three consecutive quarters since 2016. Improving metrics have refocused investor attention onto the retail sector, with strong sales volume figures in recent history. The reason for this newfound optimism is the new residents entering the region, primarily from the Bay Area.