San Diego Retail Market Report

Demand apparent in prime corridors. After posting four straight years of positive net absorption, San Diego’s retail sector recorded net relinquishment in 2025. This year, the market will face another wave of store closings, with Amazon Fresh, Best Buy, Macy’s, and Saks Off 5th among the notable shutterings. Shopping centers with move-outs may be best positioned to backfill spaces, as multi-tenant vacancy is below the long-term mean. Single-tenant availability, meanwhile, is at a nearly five-year high, in contrast to scant quick-service and supermarket vacancy. While near-term hurdles await, areas of standout performance will be visible. Central San Diego, which includes downtown, Mission Valley, and popular beach communities, ranks as the least-vacant submarket in California, with more than 30 million square feet of space. With supply pressure minimal here, the submarket’s extended stretch of high-2 to low-4 percent vacancy should continue, preventing a notable shift in metro fundamentals.