Report: San Francisco Retail Picture Slowly Improving
A new quarterly report from Cushman & Wakefield shows that while many economic indicators in San Francisco are positive, including a 2.7% unemployment rate and a median household income of $158,600, the highest in the country, the retail sector has not yet fully recovered from the pandemic. However…the picture is improving.
Total retail sales in The City were up 16.9% in June on an annual basis and Union Square visitors reached a pandemic record 1.15 million. Meanwhile, office occupancy has increased from 31.8% in March to 34.7%. Hotel occupancy has also jumped to 69.9% in the 2nd quarter of 2022 compared to 38.2% a year ago.
That being said, price increases and labor force challenges continue to weigh heavily. The overall retail vacancy rate has climbed 40 basis points between Q1 and Q2 and now stands at 5.5% and net absorption in the 2nd quarter is back in the red at -187,300 square feet.
Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.
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