San Fran Remains Top 10 Retail Market; Oakland, San Jose Drop Off

SAN FRANCISCO-San Francisco held onto a Top 10 spot in Marcus & Millichap’s latest National Retail Index while Oakland and San Jose slipped well into the second tier.The NRI ranks 38 retail markets nationwide based on a series of 12-month forward-looking supply and demand indicators. The top-ranked markets are typically characterized by low vacancies, prospects for rental growth, limited new development, and solid employment and household growth.

Washington, D.C., ranked as the top retail market in the nation for the second consecutive year due to its compelling demographics and reliable economic engine fueled by the public sector. Rounding out the top five were Orange County, Calif., (No. 2), San Diego (No. 3), Boston (No. 4) and Fort Lauderdale, Fla., (No. 5). San Francisco came in at No. 6, down one spot from last year, while Oakland and San Jose, respectively No. 8 and No. 12 last year, dropped to No. 14 and No. 19 in this latest ranking.

Cleveland came in at the bottom of the index, ranked No. 38 for its high vacancy rates and a lackluster economic outlook. Las Vegas made the biggest jump, climbing 10 spots to No. 13 for having the highest expected employment and household growth rates among the 38 markets surveyed. Seattle fell the farthest, dropping 18 spots to No. 30, primarily due to economic and employment setbacks.