The Sacramento retail market in Q4 2025 shows stable vacancy rates alongside modest rent growth, while construction activity and net absorption remain subdued. Sales pricing softened slightly year-over-year, and cap rates held steady, signaling cautious investor sentiment. Explore our full Sacramento retail market review for detailed insights and trends.
4Q 2025 Sacramento Retail Market: Key Data Points
- Vacancy Rate Holds Steady: Sacramento retail vacancy remained at 5.8%, unchanged from Q3 and up 30 bps year-over-year.
- Asking Rents Edge Higher: Average asking rent reached $1.51/SF per month, a 3.14% increase year-over-year.
- Construction Pipeline Contracts: Space under construction totaled 476,519 SF, down 14.7% from last year.
- Sales Price Softens: Average sales price declined to $261/SF, an 8.36% decrease year-over-year.
- Deliveries & Absorption Drop Sharply: Q4 deliveries were 20,701 SF, down 45.9%, while net absorption was 17,874 SF, a 109.9% decline year-over-year.
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