Sacramento Retail Market Report

The following reflects Sacramento retail market conditions as of Q3 2026.

The Sacramento retail market in Q3 2026 experienced declining vacancy and unemployment alongside rising rental rates and increased construction deliveries year-over-year. Explore our full Sacramento retail market report for deeper insights into leasing activity, investment performance, and submarket trends.

Frequently Asked Questions

What is the current retail vacancy rate in Sacramento for Q3 2026?

The Sacramento retail vacancy rate was 5.9% in Q3 2026, according to Kidder Mathews research. This is down 10 basis points from 6.0% in Q2 2026 and down 10 basis points from 6.0% a year earlier in Q3 2025 (Data source: CoStar).

What are average asking rents for Sacramento retail space in Q3 2026?

Average asking retail rents in Sacramento reached $1.55 per square foot per month in Q3 2026, up 4.25% year-over-year from $1.49 in Q3 2025. Rents ticked down slightly from $1.56 in Q2 2026 but remain higher than year-ago levels (Data source: CoStar).

How much retail net absorption did Sacramento post in Q3 2026?

Sacramento retail posted net absorption of 144,573 square feet in Q3 2026, meaning tenants occupied significantly more space than they vacated during the quarter. Net absorption for the 2026 year-to-date period totaled 399,906 square feet, compared to negative 38,952 square feet for the same period in 2025, according to Kidder Mathews research.

How much retail construction is underway in Sacramento?

There was 184,486 square feet of retail space under construction in Sacramento as of Q3 2026, down 65.18% from 529,775 square feet a year earlier. Construction deliveries totaled 48,200 square feet in Q3 2026 alone, bringing 2026 year-to-date deliveries to 472,659 square feet, up 20.38% from 392,652 square feet in the same period of 2025 (Data source: CoStar).

What was the largest retail sale transaction in Sacramento in Q3 2026?

The largest retail sale transaction in Sacramento in Q3 2026 was Auburn Town Center in the Auburn/Loomis submarket, a 67,411-square-foot property that sold for $19,150,500, or $284.09 per square foot. Jim Pattison Developments US Inc acquired the property from Oak Street Real Estate Capital, according to Kidder Mathews research.

What other significant retail sales closed in Sacramento in Q3 2026?

Placer Center Plaza in Roseville/Rocklin sold for $9,972,000 ($131.64 per square foot) across 75,754 square feet, with Mani Imports, Inc. purchasing from Realty Income Corporation. Natomas Marketplace, a smaller 3,300-square-foot property in Natomas, traded for $8,008,000, or $2,426.67 per square foot, with Hasco Realty, LLC buying from Micnan, LLC (Data source: CoStar).

What was the largest retail lease signed in Sacramento in Q3 2026?

The largest retail lease signed in Sacramento in Q3 2026 was a 21,105-square-foot lease at 11415 Folsom Blvd in the Highway 50 Corridor submarket, signed by Comfort Thrift & Boutique in August 2026. Other notable leases included Petco at Goldorado Shopping Center in El Dorado (10,200 square feet) and Auto Paint Supplies at 8135 Florin Rd in South Sacramento (7,485 square feet), both signed in July 2026, according to Kidder Mathews research.

What are average cap rates for Sacramento retail properties?

The average cap rate for Sacramento retail properties was 6.7% in Q3 2026, up 10 basis points from 6.6% a year earlier in Q3 2025. Average sales price per square foot climbed to $263 in Q3 2026, a 36.50% increase from $193 in Q3 2025, according to Kidder Mathews research (Data source: CoStar).

What is the outlook for the Sacramento retail market?

Sacramento’s retail market showed continued tightening in Q3 2026, with vacancy declining, rents rising, and net absorption turning positive on a year-to-date basis. At the same time, the under-construction pipeline fell sharply year-over-year, suggesting limited new supply may keep supporting landlord-favorable conditions, according to Kidder Mathews research.

Last updated: Q3 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

Q3 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: Retail vacancy in Sacramento fell to 5.9% in Q3 2026, down 10 basis points both quarter-over-quarter and year-over-year.
• Average Asking Rents: Asking rents averaged $1.55/SF/Mo in Q3 2026, up 4.25% year-over-year from $1.49/SF/Mo in Q3 2025.
• Net Absorption: Sacramento retail recorded 144,573 SF of positive net absorption in Q3 2026, lifting 2026 YTD absorption to 399,906 SF, a sharp turnaround from negative 38,952 SF over the same period in 2025.
• Construction Pipeline: Only 184,486 SF of retail space was under construction as of Q3 2026, down 65.18% year-over-year, while construction deliveries reached 472,659 SF year-to-date, up 20.38% from 2025.
• Investment Activity: Average sales price rose to $263/SF in Q3 2026, up 36.50% year-over-year, while the average cap rate ticked up 10 basis points to 6.7%.
• Largest Sale: Auburn Town Center in Auburn/Loomis sold for $19,150,500 ($284.09/SF), the quarter’s largest retail sale transaction.
• Largest Lease: Comfort Thrift & Boutique signed a 21,105 SF lease at 11415 Folsom Blvd in the Highway 50 Corridor submarket.

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date Comparison

Significant Sale Transactions Q3 2026

Significant Lease Transactions Q3 2026

Significant Under Construction

Data as of Q3 2026. Source: CoStar. Prepared by the Kidder Mathews Research Group.