Massive jump in development pushes supply growth to cycle high amid extremely tight environment. Underpinned by some of the world’s largest companies, the San Jose metro holds the highest median household income in the nation. The resulting strength has sponsored extremely robust retail demand, supporting a metrowide vacancy rate well below 5 percent. Tight conditions are beginning to filter into an elevated completions schedule, with construction set to reach a new cycle high in 2018 as developers focus on transformative, mixed-use projects. A $1.1 billion expansion to the Valley Fair mall in Santa Clara will add a new wing and outdoor spaces, while the retail portion of the 36-acre Sunnyvale Town Center will come online in central Sunnyvale. Meanwhile, the Village at San Antonio Center in Mountain View will be redeveloped into a modern mixed-use hub offering essential retail, office and apartments with a community park. The resulting rise in development will likely cause intermittent upticks in vacancy as the new space is leased, yet rent growth will remain elevated as retailers vie for the new high-quality space.