BIG ASORPTION AT DELTA SHORES, REST OF MARKET STABLE HEADING INTO HOLIDAYS
Net absorption was well above average for Q3, but with the majority of new occupants taking newly constructed space, the overall vacancy rate hardly budged. A number of big box vacancies remain unfilled, but new developments are pushing average asking rates, the biggest shift evident in the vicinity of Downtown Commons and the new Delta Shores along I-5. The first new stores at these two major development sites have opened in the last 90 days or will open before the end of 2017. Meanwhile, the rest of the market has remained relatively stable, with no major retailers exiting or entering the market. Investors from outside the Sacramento market have been active, as properties in this market offer cap rates more than 100 basis points higher than Bay Area and Southern California markets and more than 50 basis points above the average for the Western region.