JKG
3Q
2022
R ETAIL
MARKET REPORT MARKET OVERVIEW
Despite the overall economic slowdown, the Retail Commercial Real Estate sector continues with a strong performance. Vacancy rates are down slightly from Quarter 2 in the Sacramento region dropping from 7.8% to 7.6%. Growth in the region remains steady, with a slight increase in new construction from Q2 to Q3. Lately, significant renovation projects have been on an upward trend within shopping centers. Recent renovations in progress and planned include Country Club Centre in Sacramento, Sunrise Village in Citrus Heights, Granite Bay Village, and The Davis Collection (previously University Mall) including a small format Target as an anchor and the existing Trader Joe’s. Due to high construction costs and permit fees, we anticipate continued infill redevelopment of existing centers. Gallelli Real Estate 3005 Douglas Blvd #200 Roseville, CA 95661 P 916 784 2700 www.GallelliRE.com
As we approach 2023, the market shows an increased probability of a recession in the coming months. Consumer spending currently remains healthy but has shown signs of slowing as COVID-related 2020 savings funds begin to dwindle and consumer confidence appears to be weakening. We anticipate a slight slowdown in deal velocity as the post-COVID era continues in the later part of the year.