Report: Retail Market in Carmichael Lags

Despite some of the lowest rent costs in the region, the retail real estate market in Carmichael lagged last quarter, according to a report released Monday from real estate firm Colliers International.

Retail vacancy fell across the region in the third quarter to around 13 percent, but 18 percent of strip mall centers and 12 percent of community neighborhood centers in Carmichael and Fair Oaks remain vacant, the report stated.

Last quarter, more than 22,000 square feet of community neighborhood shopping centers went vacant in Fair Oaks and Carmichael, including , while about 6,000 square feet of strip malls were filled. In Carmichael, new businesses included and . There is still less retail real estate of each type occupied now than there was at the start of 2011, Colliers said.

"Unanchored strip centers continue to be the most challenged retail subsector in the region," the report stated. "Small businesses tend to be the highest percentage user of strip facilities and also the first segment of the retail sector to close their doors during economic contraction."

Lease rates overall are lower than they were one year ago, the report stated, noting that Carmichael and Fair Oaks lease costs tend to be lower than other areas around Sacramento.

Overall, the report is positive about the future for Sacramento's retail businesses, although it mostly highlights successes in areas like Elk Grove, Roseville and Arden Arcade.

"We believe Sacramento’s retail market has entered into its recovery phase, but it will be a recovery that will happen very gradually as the local, and national, economies continue to be influenced by both positive and negative pressures," Colliers wrote. "Retailers across all subsectors will likely have struggles to deal with as long as influences like high fuel prices, distressed housing market, and poor area economics continue to put financial pressures on consumers."