The San Diego retail market in Q3 2025 saw a slight increase in vacancy and a modest decline in asking rents, while construction activity expanded and sales pricing dropped significantly. Net absorption remained negative, and deliveries slowed year-over-year. Explore our full San Diego retail market report for detailed insights into leasing, investment, and development trends.
3Q 2025 San Diego Retail Market: Key Data Points
- Vacancy Rate Rises: Retail vacancy increased to 4.4%, up 50 basis points year-over-year.
- Asking Rents Dip Slightly: Average asking rent declined to $2.36/SF, a 0.56% decrease from Q3 2024.
- Construction Pipeline Expands: Space under construction rose to 667,993 SF, a 36.8% increase year-over-year.
- Sales Prices Drop Sharply: Average sales price per square foot fell to $250, down 40.6% year-over-year.
- Construction Deliveries Decline: YTD deliveries totaled 100,745 SF, down 34.7% from the prior year.
- Net Absorption Negative: The market recorded -724,129 SF in net absorption YTD.
Click here to subscribe to Kidder Mathews market research.