November 2, 2026

Retail in the Sacramento region really depends on which part of town you're in. CBRE's Q3 report put overall retail availability at 7.0%. Rocklin and Folsom/El Dorado Hills were the tightest submarkets at 3.4%. Orangevale was at 26.2%.

Very little new retail is being built. Only 14,000 SF was completed in the region in Q3. With almost no new supply, existing second-generation space is the inventory.

We track second-gen restaurant and retail space every week, and the pattern we keep seeing is that the next tenant rarely looks like the last one:

• On East Bidwell in Folsom, Roku Japanese Cuisine just opened in the old University of Beer space. A few doors down, PetSmart is closing its 19,217 SF store at 2705 E. Bidwell on November 22.
• In Gold River, Club Studio is proposed for the former Rite Aid.
• On Mack Road, H Mart is opening in the former 54,000 SF Food Source.
• On Northgate Boulevard, Rivian is pursuing permits for a sales and service center in the old Fry's building.

Bar to restaurant. Pharmacy to fitness. Electronics to auto. The big boxes are getting filled, just not by the same type of user.

For landlords, know what you have before you demo anything. A hood, grease interceptor, walk-in, extra power and good parking are worth real money to the next restaurant or gym. Turnkey second-gen restaurant spaces in downtown Sacramento are asking roughly $2.00 to $2.50/SF per month plus NNN. Also check your center's exclusives before marketing a space for a specific use. A coffee or fitness exclusive can kill a deal late in the process.

For tenants, the submarket matters. In Folsom and Rocklin there isn't much to choose from, so when a good second-gen space comes up you need to move quickly. In softer areas you have more leverage on rent, free rent and TI.

If you're looking for retail or restaurant space, or have a vacancy coming up and want to talk through who the next tenant could be, reach out.