San Francisco Retail Market Report
Retail Properties Performing Fairly Well Outside the
Core as Tourism Spending has Yet to Fully Recover
San Francisco’s suburban retail continues to show resilience. Vacancy in the city of San Francisco, excluding the CBD, stood at 3.6 percent in June. While this is up from pre-pandemic levels, it is below most other areas of the market, as well as the overall U.S. rate of 4.6 percent. Comparatively lower availability is, in turn, contributing to a less drastic rent correction, with asking rates in the suburbs now surpassing some parts of the CBD. Demand for space near residential areas is reflected in the types of retailers moving in , namely dining and fitness concepts. While some leases are also being let go, leading to subdued overall net absorption, a lack of new supply will help keep vacancy pressure manageable.