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2022 Q2 Sacramento Retail Market Report

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Sales Volume Surges as Market Recovers and Stares Down Economic Headwinds

Retail tenant demand remains strong throughout the Sacramento region with the local economy surpassing pre-pandemic employment and population continuing to rise. Despite a negative quarter of net absorption, year-to-date demand is still positive, and vacancy is level with its pre-pandemic rate. Demand is outpacing supply as construction continues at a measured pace, concentrated in growing suburban areas like Roseville, Rancho Cordova, and Folsom. Grocery tenants have been active, addressing the needs of an expanding consumer base, with Raley’s opening a Roseville store in June and Nugget Markets and Amazon Fresh both leasing new locations this quarter. Retailers face daunting issues with unpredictable supply chains, soaring inflation, scarce labor, and a looming recession. Despite rising interest rates, sales activity has been particularly strong with five sales of $25 million or more closed during the quarter. Year-to-date sales volume has already surpassed last year’s annual total and is on pace for a record year while average pricing rose to an all-time high and cap rates compressed to nearly 6.0 percent. 

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2022 Q2 Sacramento Retail Market Report

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Bob Shanahan

Research Manager

Sacramento

Bob entered commercial real estate at the start of 2015 at Colliers in Seattle/Bellevue and has more than seven years of commercial real estate research experience. A writer by nature, Bob is always trying to tell the story behind the numbers and go above and beyond to add value to his brokerage partners. Forever teachable and eternally curious, Bob strives to always be learning more while staying on the leading edge of market trends and remaining abreast of all pertinent real estate transactions and developments. Passionate about real estate and urban planning, Bob is dedicated to taking Colliers to the next level by providing market-leading thought leadership and trends analysis for his internal and external clients.. Bob is a natural-born storyteller, always digging into the statistics with unmatched nuance to craft a forward-looking narrative and outlook across the many sectors of commercial real estate he tracks.  

With extensive experience in office, industrial, multifamily, and retail research, and a developing competency in capital markets, life science, and healthcare/medical office, Bob assists brokers in the leasing and selling of property, providing best in class research support. He regulary provides market presentations for internal brokerage teams and external organizations. Bob focused primarily on the office and industrial markets in the Seattle/Puget Sound region from 2015-2017. From fall 2017 to early 2018, Bob was the office market research analyst at JLL in Sacramento with an emphasis on Downtown landlord-rep related research. 

Since May 2018, Bob has been back at Colliers in his hometown of Sacramento. Since mid-2018, Bob bas accelerated his career in the support of 40 brokers across the Capital City region. In late  2020, Bob was tasked with overseeing the Reno market while managing a new Research Analyst, and has taken on an increasing leadership role in the Northwest region, including leading the regional multifamily market report comprised of 10 markets from Northern California and Northern Nevada to Oregon and Washington. Bob has invested in his leadership development, recently completing the two year Management Development Program at Colliers in partnership with Harvard Business School and completing the year long Leadership Sacramento Class of 2021 through the Sacramento Metro Chamber Foundation.  

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