Development falls to five-year low amid consistent space absorption. Robust employment growth throughout the Bay Area has triggered exceptional housing demand in Oakland. As residents seek out affordable rentals, they are drawn to Oakland, where accommodations can be found below the broader regional average. Retailers have followed suit, pushing vacancy to the lowest point in over a decade. Despite the tightening conditions, construction activity is on pace to slow to a five-year low, even as net absorption has consistently surpassed completions annually in five of the past six years. The diminishing pipeline will be underpinned by the Shoppes at Livermore and Sciortino Ranch in Brentwood. While the former represents more than 120,000 square feet of retail space near the existing Livermore Premium Outlet Center, the latter highlights the retail portion of a massive 60-acre mixed-use development that will include roughly 85,000 square feet of retail space and more than 325 single-family homes. These projects will do little to slow the pace of absorption, fueling a moderate drop in vacancy and continued rent growth.