Six Centers Show Zero Space

SAN FRANCISCO–The Bay Area may have finally bumped into a retail ceiling, after four straight quarters of positive net absorption. Overall occupancy leveled off at the end of the second quarter at 97.08% occupancy, a slight tick down from the all-time high of 97.34% achieved in the prior quarter, according to John Cumbelich & Associates‘ of the Bay Area’s flagship power center inventory quarterly survey.

In addition to absorption in the overall market flattening out during the second quarter, each of the San Francisco Bay Area’s four submarkets recorded minor pullbacks in occupancy during the quarter.  But these increases in vacancy were very small, as the East Bay, Peninsula and North Bay markets each had vacancy gains of 12,000 to 15,000 square feet, which amounted to less than half of 1% in change.  The South Bay market was virtually unchanged, with a mere 2,000 square feet in net new vacancy.