The San Diego retail market in Q4 2025 maintained stable vacancy rates while rents inched upward. Construction activity continued to decline significantly, and absorption remained modest. Sales pricing surged year-over-year, and cap rates compressed slightly, reflecting strong investor demand. Explore our full San Diego retail market review for detailed analysis and trends.
4Q 2025 San Diego Retail Market: Key Data Points
- Vacancy Rate Holds Steady: Retail vacancy remained at 4.4%, unchanged from Q3 and up 60 bps year-over-year.
- Asking Rents Show Minimal Growth: Average asking rent reached $2.39/SF per month, a 0.46% increase year-over-year.
- Construction Pipeline Shrinks: Space under construction fell to 298,876 SF, down 55.9% from last year.
- Sales Price Surges: Average sales price climbed to $389/SF, marking a 41.9% year-over-year increase.
- Deliveries & Absorption Remain Low: Q4 deliveries totaled 90,317 SF, down 2.2%, while net absorption was 32,194 SF, following a sharp rebound from negative absorption in 2025.
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