The Peninsula retail market in Q4 2025 saw vacancy rates edge slightly higher while asking rents continued to rise. Construction activity more than doubled year-over-year, though no new deliveries occurred this quarter. Sales pricing remained relatively flat, and net absorption turned negative, signaling softer tenant demand. Explore our full Peninsula retail market review for detailed insights and trends.
4Q 2025 Peninsula Retail Market: Key Data Points
- Vacancy Rate Inches Up: Retail vacancy rose to 4.8%, up 30 bps year-over-year.
- Asking Rents Continue to Climb: Average asking rent reached $3.20/SF per month, a 1.99% increase year-over-year.
- Construction Pipeline Expands: Space under construction surged to 189,231 SF, up 111.4% from last year.
- Sales Price Holds Steady: Average sales price was $569/SF, a slight 0.97% decrease year-over-year.
- No New Deliveries & Negative Absorption: Q4 deliveries were 0 SF, while net absorption posted -18,483 SF, reflecting weaker leasing activity.
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