The San Francisco retail market in Q3 2025 shows a decline in vacancy and a steady rise in asking rents, while construction activity has slowed significantly. Sales pricing edged upward, and net absorption turned negative after a strong prior year. Explore our full San Francisco retail market report for detailed insights into leasing, investment, and development trends.
3Q 2025 San Francisco Retail Market: Key Data Points
- Vacancy Rate Declines: Retail vacancy dropped to 6.8%, down 70 basis points year-over-year.
- Asking Rents Rise: Average asking rent reached $33.65/SF, a 5.42% increase from Q3 2024.
- Construction Pipeline Contracts Sharply: Space under construction fell to 17,000 SF, down 88.0% year-over-year.
- Sales Prices Edge Up: Average sales price per square foot rose to $442, a 3.45% increase year-over-year.
- No New Deliveries: No construction deliveries were recorded YTD, compared to 125,000 SF in 2024.
- Net Absorption Turns Negative: The market recorded -72,289 SF in net absorption YTD.
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