The San Francisco retail market in 1Q 2026 shows signs of stabilization, with vacancy improving year-over-year and asking rents continuing to rise. While the construction pipeline remains inactive and the investment market experiences pricing declines, positive net absorption signals renewed tenant activity across key submarkets. Explore the full 1Q 2026 San Francisco retail market report for deeper insights into leasing patterns, pricing trends, and market performance.
1Q 2026 San Francisco Retail Market: Key Data Points
- Vacancy Improves: Retail vacancy decreased to 6.0%, an 80 bps year-over-year decline.
- Asking Rents Increase: Average asking rent rose to $35.06/SF per year, up 5.89% YOY.
- No Active Construction Pipeline: Under-construction space remained at 0 SF, unchanged from prior periods./li>
- Sales Pricing Softens: Average sales price dropped to $388/SF, a 25.38% YOY decrease.
- Net Absorption Positive: Net absorption reached 90,029 SF, indicating improved tenant demand.
- No New Deliveries: Construction deliveries totaled 0 SF, compared to 125,000 SF in 1Q 2025.
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