The San Diego retail market in 1Q 2026 shows moderating fundamentals as vacancy continues to rise, absorption turns sharply negative, and construction deliveries fall significantly year-over-year. Despite softer demand, asking rents continue to increase, while construction activity remains relatively steady across the region. Explore the full 1Q 2026 San Diego retail market report for detailed insights into retail performance, investment activity, and development trends.
1Q 2026 San Diego Retail Market: Key Data Points
- Vacancy Rates Tick Up: Retail vacancy increased to 4.6%, up 50 bps year-over-year.
- Asking Rents Continue to Rise: Average asking rent reached $2.44/SF per month, a 2.27% YOY increase.
- Construction Activity Holds Steady:Under-construction space totaled 304,805 SF, showing a slight 1.12% YOY increase.
- Deliveries Fall Sharply: New deliveries totaled 5,411 SF, a 93.15% year-over-year decline.
- Net Absorption Turns Deeply Negative: Net absorption posted –251,512 SF, reflecting declining tenant demand.
- Sales Pricing Declines: Average sales price fell to $289/SF, marking a 28.11% YOY decrease.
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