The Peninsula retail market in 1Q 2026 remains stable, with vacancy holding steady and asking rents continuing to rise year-over-year. While construction activity shows little movement and deliveries remain minimal, strong retail pricing and positive net absorption indicate steady tenant demand across the region. Explore the full 1Q 2026 Peninsula retail market report for deeper insights into leasing trends, retail performance, and investment activity.
1Q 2026 Peninsula Retail Market: Key Data Points
- Vacancy Stable: Retail vacancy held at 4.4%, up 40 bps from the prior year.
- Asking Rents Continue to Rise: Average asking rent increased to $3.22/SF per month, a 3.68% YOY gain.
- Construction Pipeline Unchanged: Under-construction space totaled 186,601 SF, flat year-over-year.
- Sales Pricing Climbs: Average sales price rose to $530/SF, an 18.66% year-over-year increase.
- Minimal Deliveries: Construction deliveries reached 2,630 SF, compared with 0 SF in 1Q 2025.
- Positive Absorption: Net absorption totaled 6,510 SF, reflecting steady tenant activity.
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