Power center occupancy is sky high and retail expert John Cumbelich tells us it's basically a joke to try and find space. And it isn't going to get any easier.
John's firm, John Cumbelich & Associates, released a report that says power center occupancy among the top 25 flagship centers in the Bay Area has moved above 97%, an all-time high. In addition, the North Bay and San Francisco/Peninsula submarkets are both just a hair under 99% occupancy -- which is "historic and unprecedented," he says. Despite the strong fundamentals, John says there aren't a whole lot of projects in development, which he considers surprising. John says there could be more development, but the Bay Area has severe land constraints.
John tells us that at end of Q4, all of the following flagship assets were 100% occupied: Bridgepointe, San Mateo (550k SF); Santa Rosa Marketplace (541k SF); San Jose Market Center (356k SF); South Napa Marketplace (349k SF); and Potrero Center (226k SF), pictured. That’s 2M SF spread over five centers with no vacancy, John says. "A pretty amazing stat, historically speaking," he says.
