The East Bay retail market in Q4 2025 saw vacancy rates rise slightly while asking rents posted modest growth. Construction activity continued to decline, and sales pricing dropped sharply year-over-year. Net absorption remained negative, signaling ongoing demand challenges. Explore our full East Bay retail market review for detailed trends and transaction insights.
4Q 2025 East Bay Retail Market: Key Data Points
- Vacancy Rate Increases: Vacancy climbed to 5.9%, up 70 basis points year-over-year.
- Asking Rents Edge Up: Average asking rent reached $2.46 per SF per year, a 1.3% increase from Q4 2024.
- Construction Pipeline Shrinks: Space under construction fell to 330,481 SF, down 33.7% year-over-year.
- Sales Pricing Drops: Average sales price declined to $111 per SF, a 51.6% decrease compared to last year.
- Cap Rates Expand: Average cap rate rose to 6.1%, up 40 basis points year-over-year.
- Net Absorption Negative: Q4 absorption totaled -480,095 SF, reflecting continued soft demand.
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