In beautiful Northern California, Redding is going through some exciting changes with new projects focused on enhancing community life and highlighting local resources. From welcoming parks and refreshed shops to state-of-the-art healthcare facilities, these developments are set to make everyday life better and energize the city’s economy.
Market Overview:
Redding, CA, is experiencing a stable retail market with positive developments. In the past year, 5.9K square feet of new retail space was added, which was fully absorbed by incoming businesses. The vacancy rate is currently at 5.9%, indicating a healthy demand for retail space. Market rents are increasing as well, with an average growth of 3.0%, bringing the average asking rent to about $19.86 per square foot per year ($1.66/sf per month) plus triple net expenses. Neighborhood centers make up a large part of the market, totaling 3.3 million square feet but with a higher vacancy rate of 6.0%. In contrast, general retail spaces are performing better, with a vacancy rate of 2.4%. Overall, Redding’s retail market is thriving and shows strong potential for future growth.
Migration Trends: Affordable Living in Redding:
Many individuals are moving from expensive areas, such as the Bay Area and Sacramento, to more affordable regions like the Redding Metropolitan Statistical Area (MSA).
Driving Factors:
- Prime Location: Redding is close enough to major cities like Sacramento and San Francisco, offering easy access to urban amenities and cultural attractions without the high cost of living found in larger cities.
- Affordability: Compared to other parts of California, living in Redding is much more affordable. This means affordable housing options and lower everyday expenses, making it a great choice for families and individuals looking to save money without sacrificing quality of life. There are several sources for the median house price for the Redding area, but one such source (Realtor.com) states the current median house price is $415,000.
- Abundant Sunshine: Redding enjoys more than 300 days of sunshine each year, making it one of the sunniest cities in the U.S. This sunny climate supports a vibrant outdoor lifestyle year-round, perfect for activities like hiking, biking, and exploring the beautiful natural landscapes nearby.
- Strong Economy & Job Market: Redding’s economy is diverse, with thriving industries in healthcare, technology, and education. Major employers like Sierra Pacific Industries, Simpson University and Dignity Health/CommonSpirit provide stable job opportunities with room for career growth and development.
- Small Town Charm: Despite its economic growth, Redding maintains a welcoming small-town atmosphere. Local events and community gatherings are common, creating ample opportunities for residents to connect and build meaningful relationships.
- Abundant Outdoor Recreation: With lakes, rivers, and national parks close by, Redding offers endless outdoor recreation opportunities. Whether you enjoy boating on Whiskeytown Lake or hiking in Lassen Volcanic National Park, there’s something for everyone to enjoy.
- Educational Opportunities: Redding is home to reputable educational institutions like Shasta College and Simpson University, offering a wide range of academic programs and vocational training. These schools cater to both traditional students and adults looking to advance their careers.
- Cultural and Community Engagement: Recognized as a California Cultural District, Redding boasts a thriving arts scene with public art, galleries, and performance venues. The community actively participates in volunteer organizations and local initiatives, fostering a strong sense of belonging and civic pride.
In summary, Redding combines affordability, sunshine, outdoor beauty, economic opportunity, educational excellence, and a rich cultural scene, making it an attractive and welcoming place to live in Northern California.
Redding’s Appeal:
- Many Californians seek more affordable living conditions in regions like Redding, which offers a lower cost of living compared to major urban centers.
- People in Redding, CA have an average commute time of 16.6 minutes, and they drove alone to work.
- Attracts new residents looking for a better quality of life.
Impact on Demographics:
- Migration trends are reshaping the demographics and housing markets of both origin and destination areas.
- Affordable regions like Redding are becoming increasingly competitive in attracting new residents.
Source: This information is based on insights from the migration trends map available at North American Migration Map.
Overview of Redding’s Real Estate Development:
According to Sharrah Dunlap Sawyer, Inc., the number of approved lots in Redding, Northern Shasta County, and Shasta Lake has dropped significantly since their 2021 map. In 2021, there were 2,819 approved paper lots in the combined areas of Redding, Shasta County, and Shasta Lake. Currently, that number has decreased to 1,324, with 1,105 of these located in Redding. This is significantly impacting the future of the housing supply in Redding.
Redding’s economic resilience is evident with ongoing job growth, affordability, and a strong rebound from pandemic challenges, making it a promising spot for real estate investments in 2024 and 2025. Real estate values in Redding saw consistent growth from 2012 until they declined for two consecutive quarters starting in the second quarter of 2022. This decline coincided with a slowdown in commercial development, including a significant reduction in valuation and fewer new building permits. As a result, there’s a noticeable shift in focus towards residential properties, which continue to see strong demand. Property owners can take advantage of this trend by exploring residential investments to diversify their portfolios.
By the fourth quarter of 2023, however, there was a slight increase of 0.1% in the House Price Index for the Redding Metropolitan Statistical Area compared to the same period in 2022, indicating potential signs of stabilization or recovery in the real estate market.
Additionally, a CBS News article earlier this year ranked Redding as the top city in the U.S. for projected home price increases in 2024, with CoreLogic estimating a potential rise of 7.3% this year.
To learn more about our specialized approach to navigating the local market, visit our page on Redding Commercial Real Estate services. The Haedrich Group at Capital Rivers brings a wealth of expertise to help clients make informed decisions in Redding’s evolving commercial real estate sector.
Credit: Sharrah Dunlap Sawyer, Inc.
New Developments in Redding’s Dining and Shopping Scene
Redding’s dining and retail scene is experiencing exciting transformations, attracting national and regional operators.
Recent Developments:
- Dave’s Hot Chicken: Getting ready to open its first location in Redding at Discovery Village by the end of 2024, known for its delicious chicken.
- Chick-fil-A: The second location is currently under construction near the South Bonnyview Road and Interstate 5 interchange, in the new Costco shopping center next to McDonald’s.
- Wingstop: Opened on March 12th at 1020 E Cypress Ave in the Safeway-Lowe’s shopping center, serving delicious chicken wings. This marks Redding’s first Wingstop location.
- Grange Co-op: Scheduled to open in 2025 at 55 Lake Boulevard, this 40,000+ square-foot store is operated by a 50+ year-old coop from Southern Oregon. They will offer a variety of products, including a state-of-the-art dog wash area.
- Barnes & Noble: Relocated to Hilltop Shopping Center on January 24th, 2024, featuring a wide array of books, toys, games, and an updated café.
- Turner’s Outdoorsman: Set to open next to Target at 1280 Dana Drive, Redding, CA 96003. Known for its extensive selection of outdoor gear and apparel, Turner’s Outdoorsman has expanded to 36 locations throughout California and Arizona.
- Costco: Relocating from Dana Drive to 4675 Bechelli Lane. This store spans 152,000 square feet, which is 30,000 square feet larger than the previous location, and includes a gas station with 30 pumps, 17 registers, and 8 self-checkout stations. It will also feature 7 rotisserie ovens to meet high demand.
Churn Creek Marketplace:
Newmark and California Gold Development are excited to introduce the Churn Creek Marketplace, a new ±150,000 square foot shopping center that’s set to become a key destination in Redding. The center is anchored by popular stores like Save Mart, Ross Dress for Less, Petco, ULTA Beauty, Five Below, Daiso, Starbucks, In-N-Out Burger, Panda Express, Les Schwab Tire, an Express Car Wash, Mechanics Bank, and LA-Z-Boy. Plus, several more local and national brands are in the process of joining the lineup.
Located at the NE corner of the I-5/Bonneyview Road interchange, Churn Creek Marketplace benefits from excellent freeway visibility, including 1,500 feet of frontage and the only 80-foot high pylon sign in the area. It’s easily accessible, reaching 90% of the local population within a 20-minute drive. Nearby, you’ll find new residential growth with around 697 new homes under construction.
The Marketplace is part of a bustling new retail area that also includes:
- A ±225,000 square foot Costco center, which is now open.
- A planned ±165,000 square foot casino and commercial complex, with a ±250-room hotel.
For those looking to expand or start a new venture, there’s a fully entitled drive-through Pad E available for purchase, build-to-suit, or lease. Limited in-line spaces are also available.
As Redding’s newest major retail center, Churn Creek Marketplace is perfectly positioned to serve this vibrant region, which includes major business and medical facilities like Mercy Medical Center and the Dignity Health Outpatient Medical Campus.
Cheers to Redding: Celebrating Our Craft Beer Community:
Downtown is home to a lively assortment of bars and lounges, each known for its unique selection of wines and cocktails. Whether you’re in the mood for a refined glass of wine or a creatively mixed cocktail, you’ll find just what you’re looking for here. Adding to the charm, many of these spots host live music, making it a perfect setting to unwind and enjoy your drink in good company.
Some Notable Local Breweries:
- Fall River Brewing Co: Known for its commitment to freshness, this brewery provides a beer-only menu, showcasing exceptional brews sourced directly from their facility.
- Final Draft Brewing Company: With 24 taps available, this brewery invites patrons to explore a diverse range of craft beers, ensuring there’s something for everyone’s palate.
- Woody’s Brewing Company: An award-winning, family-run business that not only serves incredible beers but also emphasizes community and local pride, making it a beloved spot in Redding.
- Pourboys Tapyard: At Pourboys Tapyard, they’re dedicated to serving the best local and regional craft beer, supporting artisans who create exceptional brews. Their family’s passion ensures a welcoming atmosphere where everyone feels at home. Explore their curated menu of crisp lagers, sweet hazys, and rotating seasonal brews.
25th Annual Redding Beer and Wine Festival – 2024
- Celebrate the 25th year of the Redding Beer and Wine Festival, presented by Results Radio and Viva Downtown on Saturday, September 16th from 3-7PM in downtown Redding.
- Enjoy unlimited tastings of craft beers and wines from local breweries and wineries, meet with brewmasters and winemakers, savor local cuisine, and browse artisanal works from up to 20 vendors.
- Join in on toasting Redding’s thriving craft beverage scene, supported over 25 years. Tickets are limited, so secure yours early! Ages 21+ event, rain or shine.
Learn More About the 25th Annual Redding Beer and Wine Festival!
Excitement Builds Downtown:
New Public Market:
As construction progresses on Market Street, downtown Redding is buzzing with anticipation for the upcoming Redding Public Market Center, set to open in spring 2025. This ambitious project aims to redefine the city’s culinary and social landscape.
The exciting tenants to formally commit to the Redding Market Center include Fall River Brewing Company, California’s 21st largest craft brewery, known for its multiple award-winning brews; The Bantam Kitchen & Cooler, a full-service restaurant that brings a modern twist to traditional Southern favorites; a craft bakery from Tarsus Foods, which will offer expertly prepared scratch-baked breads and pastries with cold brewed coffee; 32 Below ice cream shop and chocolate store; a pho and ramen noodle restaurant with homemade broths; Fuego Tacos with authentic al pastor spinning meat trompo tacos; a brand new scratch cocktail bar; wine shop with level 2 master sommelier; and produce grocery section including meats, cheeses, wraps and salads.
Features of the Public Market:
- Artisanal Offerings: Visitors can enjoy locally brewed beers, artisanal creations, and fresh baked goods from various vendors indoors, as well as on the 3,000 square foot fully conditioned patio with fire pits.
- Community Hub: With a cocktail bar, bakery, and year-round patio, the market will serve as a vibrant space for social gatherings and community events.
The Redding Public Market Center is poised to become a cornerstone of downtown revitalization efforts, creating a lively destination for residents and visitors alike.
New Apartments Transforming Downtown Redding:
Downtown Redding has multiple new projects and an influx of businesses including projects like California Place Apartments.
California Place Highlights:
- Apartments: 79 apartments, part of a core area with 337 apartments, providing a built-in customer base.
- Parking: Adjacent 5-story parking structure with 400 spaces, ensuring ample parking for customers and employees.
- Available Spaces: Retail, restaurant, and office options with outdoor seating areas to enhance the customer experience.
- Unique Features: Redding’s only 750 square foot rooftop bar, offering a distinctive attraction.
Investment and Impact:
With over $500 million invested in downtown Redding over the past five years, California Place is at the heart of this dynamic transformation, significantly contributing to the area’s growth and vibrancy.
For the Public Market and other downtown availability contact Chris Haedrich at chris.h@capitalrivers.com for more information. Learn more about the Redding Public Market and California Place Apartments.
Advancing Healthcare in Redding
Redding is set to experience significant advancements in healthcare with two transformative projects underway.
Redding Rancheria’s Tribal Health Village:
- Location: 27 acres near State Route 273.
- Investment: Estimated between $100 million to $125 million.
- Facilities: Includes an outpatient clinic and a wellness center, offering a mix of traditional and holistic treatments.
Regional Cancer Center:
- Collaboration: A joint effort by Dignity Health
- Location: Intersection of Hartnell Avenue and Cypress Avenue.
- Investment: $70 million, with groundbreaking in September 2024 and opening expected by early 2026.
Learn more about Redding Rancheria’s Tribal Health Village and Regional Cancer Center.
Fortera Launches Redding ReCarb® Plant: A Step Forward in Sustainable Cement
Fortera has launched its groundbreaking Redding ReCarb® Plant, marking a significant advancement in green cement technology.
Key Features:
- Environmental Impact: Aims to capture CO2 emissions from cement production and transform them into ReAct® green cement, reducing carbon emissions by 70% per ton.
- Integration: Located next to CalPortland’s cement plant, ensuring efficient and cost-effective implementation.
The Redding ReCarb® Plant exemplifies innovation and environmental responsibility.
Learn more about Fortera.
Conclusion: Redding’s Bright Future
Redding is going through an amazing transformation, with new projects that are truly enhancing community life and energizing the local economy. Developments like Panorama Park and the upcoming Public Market Center are creating vibrant spaces where people can gather and connect. With more restaurants and shops opening their doors, Redding isn’t just evolving—it’s thriving. These initiatives reflect the city’s dedication to building a sustainable and prosperous future for everyone. Together, they’re fostering a community that’s ready to embrace tomorrow while celebrating the unique spirit of Northern California.
At Capital Rivers, we are proud to be recognized as the Top Commercial Real Estate Firm in the region, providing unmatched expertise in commercial property development. Our team continues to drive growth and transformation in Redding’s real estate landscape, ensuring lasting value for investors and the community.
This article was researched and written by Sophia Cheung.
