Unwavering retailer demand maintains minimal vacant stock. In 2017, San Diego’s retail vacancy rate reached a cycle low of 3.6 percent. Since that time, availability in the metro has shifted nominally, as many shops have opted to renew existing leases or occupy additional footprints. Backing these retailers’ decisions is a strong year-round tourism industry, which supports consumer spending in the core and beach communities. Growth in the metro’s tech, life science and defense industries has also elevated retailer confidence. Consistent hiring by these firms has pushed the median household income beyond $80,000 and encouraged an uptick in household formation throughout the metro, benefiting retail sales volume. These factors combined with the county’s lack of developable land will preserve tight conditions for the foreseeable future.