All CRE sectors are now in the upward trajectory of the real estate cycle, but the retail sector remains a relative laggard. With retail vacancy rates in most 12th District markets closer to twenty year highs than twenty year lows. Technology continues to drive space demand, and benefit coastal areas like Seattle and San Francisco. Anecdotal reports suggest that banks are beginning to provide loans to less creditworthy developers who are basing their valuations on non-fundamental demand. Although such lending is not yet prevalent.