The Peninsula retail market in Q3 2025 remains steady with minimal changes in vacancy and rental rates. While construction deliveries were flat, the development pipeline expanded significantly, and sales pricing held firm. Explore our full Peninsula retail market report for detailed insights into leasing activity, investment trends, and upcoming projects.
3Q 2025 Peninsula Retail Market: Key Data Points
- Vacancy Rate Stable: Retail vacancy in the Peninsula held at 4.7%, down 10 basis points year-over-year.
- Asking Rents Hold Steady: Average asking rent was $3.19/SF, a slight 0.21% decrease from Q3 2024.
- Construction Pipeline Expands Sharply: Space under construction surged to 186,601 SF, up nearly 998% year-over-year.
- Sales Prices Edge Up: Average sales price per square foot rose to $620, a 1.4% increase from the previous year.
- No New Deliveries: No construction deliveries were recorded YTD, compared to 15,000 SF in 2024.
- Net Absorption Negative: The market recorded -108,280 SF in net absorption YTD.
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