Because the Sonoma County retail market is very tight, as evidenced by the vacancy rate of 3.6% in the first quarter, according to Santa Rosa-based commercial real estate brokerage Keegan & CoppinONCOR International, the tenant-improvement market has been brisk, too, as retailers snatch up vacant space.
When the troubled Crown Books chain closed stores at Santa Rosa Marketplace in southeast Santa Rosa and at Vintage Oaks in Novato, Magnolia Hi-Fi took the Santa Rosa spot, and Pier 1 Imports seized the Novato space. A similar move happened with REI coming to Santa Rosa Southside Center in mid May behind Iguana Amerimex.
Other areas of Sonoma County and the North Bay are enjoying heightened retail construction activity. The 265,000sf Shiloh Center in Windsor, including the 14,000sf and 17,000sf multitenant buildings RAS Builders is constructing, is within a few tenants of being fully leased. In east Petaluma, Washington Square has been revamping the Mervyn's store.
In Marin, the largest projects have been Simeon Commercial Properties' $12 million-plus overhaul of Larkspur Landing Shopping Center and Petaluma-based Midstate Construction's rehab of Corte Madera Town Center in Corte Madera for Bay Club Marin and The Container Store.
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