Why Major Retailers are Expanding in Lathrop

Lathrop is a market on the rise, fueled by rapid population growth in the heart of Northern California’s Central Valley. It’s attracted the attention of major retailers like Sam’s Club, which has announced a location, and major employers like Tesla, which has established a mega-factory there. Read on for a look at what’s attracted such attention, all within easy reach of the Bay Area and Sacramento.

Fast-Growing Population with Strong Buying Power

Lathrop is one of the fastest-growing cities in California, attracting much of its population from the Bay Area, where the cost of living is 24% higher on average, and home prices are 50-60% lower on average.

• Population: 39,857 (+13.6% growth)
• Median Household Income: $118,605 (+9%)
• Median Age: 34.2 (younger, family-forming demographic)

Opportunity: Those coming from larger cities are looking for similar premium retail experiences, and now is the time to capture that retail spend with more convenient Lathrop locations.

Strategic Location with Regional Draw

Lathrop is well-connected, being situated along I-5 and State Route 120. It’s also close to several major cities with an average commute of 43 minutes for residents.

• Stockton: 10 miles
• Fremont: 43 miles
• San Jose: 47 miles
• Sacramento and Oakland: 55 miles
• San Francisco: 63 miles

Opportunity: After traveling all week, many residents prefer staying close to home and are on the lookout for nearby amenities and retail shops.

Close to Major Airports for Corporate Travel

Lathrop is well situated for corporations to manage travel and distribution. It offers direct access to major highways and proximity to several international airports.

Major Airport Access:

• San Francisco International Airport (SFO): ~63 miles
• Oakland International Airport (OAK): ~55 miles
• Sacramento International Airport (SMF): ~55 miles
• San Jose Mineta International Airport (SJC): ~47 miles

Direct Highway Connectivity:

• Immediate access to Interstate 5 (I-5)
• Direct connection to State Route 120 (SR-120)
• Efficient routes to I-205 and I-580 for Bay Area access

Opportunity: Corporations can easily streamline operations from Lathrop, which could translate to significant cost savings and greater convenience.

Retail-Ready Workforce & Economic Base

Lathrop’s local economy and booming population has attracted several significant employers to the area, including:

• Tesla – mega-factory, warehouse and distribution
• Amazon (nearby Stockton) – warehouse and distribution
• Swift Transportation – warehouse and distribution
• Del Monte Foods – food processing/canning factory
• Average Salary: ~$98K/year

Opportunity: A relatively high annual salary is part of the attraction for residents, which creates a healthy pool for businesses seeking to serve the area with groceries, QSR, health services and other family-oriented services.

Master-Planned Growth Driving Built-In Demand

Master-planned communities like Stanford Crossing are helping to ensure a steady drive of new population to the area with walkable neighborhoods offering imaginative parks, integrated schools and infrastructure. It’s been a boon for Stanford Crossing as well, which is now selling its final homes.

Opportunity: Relatively new neighborhoods offer businesses the chance to get in early and establish brand loyalty before the market saturates.

Underserved Retail = Immediate White Space

Although Lathrop’s population has been booming, the retail side is still in its early days, with current residents having to travel to larger cities for some shopping.

Opportunity: Residents are actively seeking more local options, giving some businesses distinct first-to-market advantages like Sam’s Club with little competition.

Quality of Life Drives Long-Term Stability

In Lathrop, residents can enjoy a more relaxed pace with easy access to the San Joaquin River, 25+ parks and outdoor amenities like Stanford Crossing’s Generations Center. Residents can enjoy pickleball courts, a skate park, a parkour course, an outdoor amphitheater and playgrounds. There’s also a Great Wolf Lodge Water Park just 4.6 miles away and good schools in the area.

Opportunity: There’s a strong base here for long-term growth for local businesses.

Prime Time for Commercial Growth in Lathrop

In some respects, Lathrop is still in the early stages of commercial growth, but it’s gaining attention quickly. Considering the city’s growth and potential, it’s no wonder that big retailers have already shown interest. It’s an ideal time to begin planning commercial development in Lathrop. Contact CBRE for property information, including pricing availability and the latest development details.