There is currently over 900,000 negative square feet of retail absorption in the Sacramento region, this mostly is due to major stores closing their doors. Mervyn's, Office Max, Circuit City and Linen 'n Things have all closed their doors. The Sacramento property Management Report
Average asking lease rates in the large growth areas of Sacramento: Folsom/El Dorado Hills, Laguna/Elk Grove, Roseville/Rocklin and North Natomas have lowered. The range for shop space was $1.50 to $2.25, per square foot, NNN.
Construction activity continues to be stagnating in the Sacramento area as construction was halted at developments or postponed until the economy returns and housing market stabilizes. Developers are putting projects on hold for the next 12-24 months. Sacramento Property Management Report statistics show currently there is over 2 million square feet of retail projects under construction in Sacramento, over half that square footage is due to the major project Elk Grove Promenade Mall being put on hold, several projects are slated to be complete by end of 2009.
Construction is also slowing on Folsom's Palladio mall a "lifestyle" center, at one point theree were up to six crews working on the center but that has dwindled down to two crews. One tenant- a 16 screen Cinema West- is still planning to start and open by Christmas. Other tenants including the two anchor have renoignated leases and will be opening at various times in 2010. This is just more and more evidence that retailers do not want to make a committment with a uncertain econmic future. But recently another anchor tenant, Nordstrom, had interest in joining Palladio so the future is not so bleak for this project as it is for Promenade in Elk Grove.
With market being tough and tenants getting near impossible to come by it is more important than ever to hire a quality Sacramento property management company to maintain your cash flow and help you find quality tenants to lease your property.
Ryan_Paul_Jones
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