The San Francisco retail market in Q4 2025 shows vacancy rates trending downward, modest rent growth, and a sharp decline in construction activity. Sales pricing surged significantly, while cap rates continued to rise. Explore our full San Francisco retail market review for detailed insights and transaction highlights.
4Q 2025 San Francisco Retail Market: Key Data Points
- Vacancy Rate Declines: Retail vacancy decreased to 6.5%, down 60 basis points year-over-year.
- Average Asking Rent Edges Up: Asking rents reached $33.84 per SF/Yr, a 0.56% increase year-over-year.
- Construction Pipeline Plummets: Space under construction fell to 17,000 SF, an 88% drop from last year.
- Sales Prices Surge: Average sales price climbed to $537 per SF, up 32.7% year-over-year.
- Cap Rates Increase: Average cap rate rose to 6.4%, a 70 basis point increase year-over-year.
- Net Absorption Positive: Net absorption totaled 182,035 SF for the quarter, reversing last year’s negative trend.
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