Sacramento Retail Market Report

The following reflects Sacramento retail market conditions as of Q2 2026.

The Sacramento retail market in 2Q 2026 continued to post solid fundamentals, with positive net absorption, rising asking rents, and increased construction deliveries supporting market performance. Vacancy remained below 6% despite a modest year-over-year increase, while retail investment activity strengthened as average sale prices moved higher. Explore our full Sacramento retail market report for detailed insights into leasing activity, development trends, and investment performance.

Frequently Asked Questions

What is the retail vacancy rate in Sacramento in Q2 2026?

Sacramento’s retail vacancy rate was 5.9% in Q2 2026, according to Kidder Mathews research. That is up 20 basis points from 5.7% in Q2 2025 and up slightly from 6.0% in Q1 2026, but vacancy has remained below the 6% mark for the market overall.

What are average asking rents for Sacramento retail space in Q2 2026?

Average asking rents for Sacramento retail space were $1.56 per square foot per month in Q2 2026 (Data source: CoStar). That represents a 4.52% increase from $1.49 PSF/month in Q2 2025 and is up from $1.53 PSF/month in Q1 2026, reflecting continued rent growth across the market.

How did net absorption perform in the Sacramento retail market in Q2 2026?

Net absorption, which measures the change in occupied retail space, totaled 279,056 SF in Q2 2026 alone, according to Kidder Mathews research. Year-to-date net absorption reached 309,027 SF through Q2 2026, a sharp turnaround from negative 77,782 SF over the same period in 2025, indicating tenants are occupying significantly more space than they are vacating.

How much retail space is under construction in Sacramento in Q2 2026?

Sacramento had 341,935 SF of retail space under construction as of Q2 2026 (Data source: CoStar). That is down 43.64% from 606,747 SF a year earlier, reflecting a more limited development pipeline compared to Q2 2025.

How much new retail construction was delivered in Sacramento in Q2 2026?

Sacramento saw 108,436 SF of retail construction deliveries in Q2 2026 alone, according to Kidder Mathews research. Year-to-date deliveries reached 302,116 SF through Q2 2026, up 56.08% from 193,569 SF over the same period in 2025.

What was the largest retail sale transaction in Sacramento in Q2 2026?

The largest retail sale transaction in Sacramento in Q2 2026 was the Ford Dealership in Elk Grove, a 65,000-SF property that sold for $18,750,000 ($288.46/SF), according to Kidder Mathews research. Lithia Real Estate, Inc. purchased the property from Dash Equity Investments-A, LLC. Other notable Q2 2026 sales included the Epic Chevrolet/Cadillac property in Arden/Watt/Howe ($16,100,000) and a Safeway in Elk Grove ($11,600,000).

What was the largest retail lease transaction in Sacramento in Q2 2026?

The largest retail lease transaction in Sacramento in Q2 2026 was Slick City Action Park’s 33,459-SF lease at Sunrise Tomorrow in Orangevale/Citrus Heights, signed in April 2026, according to Kidder Mathews research. Other significant Q2 2026 leases included Smart & Final’s 24,684-SF lease at 2061 Lake Tahoe Blvd in Outer El Dorado County and Burlington’s 20,879-SF lease at Crestview Village in Carmichael.

What are average retail sale prices and cap rates in Sacramento in Q2 2026?

The average retail sale price in Sacramento was $278 per square foot in Q2 2026, up 6.89% from $261 PSF in Q2 2025, according to Kidder Mathews research. The average cap rate was 6.0% in Q2 2026, down 50 basis points from 6.5% a year earlier, suggesting increased investor demand for Sacramento retail assets.

What is the outlook for the Sacramento retail market heading into the second half of 2026?

The Sacramento retail market enters the second half of 2026 with vacancy holding below 6%, asking rents continuing to climb, and net absorption running positive year-to-date, according to Kidder Mathews research. A contracting under-construction pipeline, down 43.64% year-over-year, points to continued limited new supply, which should support ongoing rent growth and landlord leverage in the market.

Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

2Q 2026 Sacramento Retail Market: Key Data Points

Explore our full Sacramento retail market review for deeper insights into leasing trends, sale activity, and submarket performance.

• Vacancy Rate Remains Stable: Sacramento’s retail vacancy rate measured 5.9% in 2Q 2026, increasing just 20 basis points year-over-year while remaining below 6%.
• Asking Rents Continue to Climb: Average asking rents reached $1.56 PSF per month, representing a 4.5% increase year-over-year.
• Construction Pipeline Contracts: Retail space under construction totaled 341,935 SF, a 43.6% decrease from one year ago, reflecting a more limited development pipeline.
• Investment Values Increase: The average retail sale price rose to $278 PSF, a 6.9% increase year-over-year, indicating continued investor demand.
• Construction Deliveries Accelerate: Year-to-date construction deliveries reached 302,116 SF, up 56.1% from the prior year.
• Net Absorption Turns Positive: Sacramento recorded 309,027 SF of net absorption year-to-date, a significant improvement from negative 77,782 SF during the same period last year.

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date Comparison

Significant Sale Transactions 2Q 2026

Significant Lease Transactions 2Q 2026

Significant Under Construction