Sacramento Retail Market Opportunities Analysis

California Department of General Services

BAE was retained as a sub-consultant to ARUP in both 2017 and 2019 to conduct retail market opportunities analysis on behalf of the California Department of General Services (DGS).

The State of California is currently pursuing a facilities modernization program that involves the consolidation of state office functions from outdated and rented facilities throughout the greater Sacramento region into newly developed office complexes, most of which are located in the Central City of Sacramento near the State Capitol buildings.

BAE worked with ARUP and DGS in 2017 to evaluate the potential demand for new retail space in the Central City of Sacramento to help DGS better understand the amount of retail space that should be accommodated into redeveloped facilities on P Street and O Street, south of the Capitol. This included evaluation of existing retail leakage and projected near-term household growth in the Central City of Sacramento, as well as an evaluation of demand generated by daytime employment both within the proposed DGS facilities, as well as nearby office buildings. The evaluation also included recommendations regarding tenant mix and possible retail recruitment targets.

The analysis was responsive to DGS’ desire to provide amenities for on-site employees, as well as the desire of the City of Sacramento that the new facilities incorporate public facing retail that will help integrate the new office buildings into the surrounding urban fabric.

ARUP later approached BAE in 2018 to conduct a similar analysis for the redevelopment of the former Office of State Publishing facility at Richards Boulevard and 7th Street. However, due to the nature of the surrounding neighborhood, known as the River District, BAE modified the analysis to focus on retail demand generated by on-site workers, as well as workers housed in nearby office buildings.

BAE also evaluated the long-term growth projections and development plans for the area, which helped to inform BAE’s recommendations regarding the amount of retail that DGS should consider incorporating into the new State complex, as well as the location of the retail space on the ground floor.

Recommendations regarding the positioning of the retail space on the site were informed based on local traffic counts, orientation toward adjacent light-rail stops and structured parking.