As is the case for other types of real estate, the big problems in the San Francisco/West Bay area for retail are shortage, regulation, and cost, not surplus and vacancy. Thus, the retail apocalypse may be seen locally as the retail opportunity. Despite some recent increases, the vacancy rate for 9.8 million square feet of community-neighborhood shopping center space is the lowest among Reis markets by some 160 basis points, and the rents are the second-highest. The vacancy rate in the West Bay community-neighborhood shopping center market was 3.5% in the first quarter of 2019. That is up 30 basis points from the prior quarter, no surprise in the aftermath of the holiday shopping season, but also up 30 from a year earlier. During the first quarter of 2019, both the average asking rent and the average effective rent increased 1.4% to $38.27 psf and $34.78 psf, respectively. The year-over-year gain is 3.7% by both measures, more than in any calendar year since 2014, when 216,000 square feet of expensive new space pulled up the averages.