The retail landscape across Orange and Los Angeles Counties continues on an upward trend, albeit slight. The data below supports our own experience that deals remain dominated by specialized markets and health & fitness tenants, as well as QSR’s on the lower-size scale. Lesser-positioned traditional vacant boxes are still relying on alternative uses (see Matt Hammond and Ben Terry’s RECON recap re: the ongoing Box evolution), such as California newcomer Life Time Fitness (see note below) and players such as Dick’s Sporting Goods and Hobby Lobby battling for the better sites.
Q2 RETAIL ― ORANGE COUNTY
- OC’s retail vacancy rate improved from 5.1% in Q1 to 4.8% in Q2, and has seen a 13.8% decrease over four quarters.
- Q2 absorption was 663,774 sf, representing the 10th consecutive quarter of positive net absorption.
- Tenants who moved into large blocks of space included:
- LifeTime Fitness: 150,049 sf at 25600 Rancho Niguel Road, Laguna Niguel ― 1st California location for Minn.-based lifestyle fitness chain operating 105 nationwide sites
- AA Marketplace: 80,222 sf at 13200 Harbor Blvd., Garden Grove ― Asian market, former Albertson’s building
- Habitat for Humanity ReStore: 21,070 sf at 1656 W. Katella Ave., Anaheim ― Former CVS demised to also include dd’s Discounts
- Largest lease signings of Q2 include:
- 56,800 sf Walmart Neighborhood Market at 117-135 N. Beach Blvd., Anaheim ― Subdivided former Food-4-Less space
- 39,566 sf Saks Fifth Avenue OFF 5th at 901 S. Coast Drive, Costa Mesa
- 36,500 Saddleback Church at Stadium Crossings, Anaheim ― Former Bally’s Gym space
- 20,590 sf Toby Keith’s I Love This Bar & Grill at Anaheim Gardenwalk
- 15,880 sf Old Navy at 550-586 N. Euclid Street, Anaheim
- Q2 new construction included six retail buildings totaling 290,473 sf. Over the past four quarters, a total of 474,935 sf of retail has been built in OC.
Q2 RETAIL – LOS ANGELES COUNTY
- Los Angeles County’s retail vacancy rate did not change in Q2 (5.1%), however, it remains 7.90% lower over the past four quarters.
- Retail net absorption was slightly positive with 449,008 square feet absorbed.
- Tenants who moved into large blocks of space included:
- Food-4-Less: 78,962 sf at 11507 South Western Avenue, Los Angeles
- Sears Outlet Store: 54,000 sf at Antelope Valley Mall, Palmdale
- Smart & Final: 45,678 sf at 1005 W. Arrow Highway, San Dimas ― Former Ralph’s location
- The largest lease signings in Q2 included:
- 54,000 sf Dick’s Sporting Goods at Antelope Valley Mall, Palmdale ― Subdivided former Harris/Gottschalk’s building
- 46,038 sf Hobby Lobby at 26565 Bouquet Canyon Road, Santa Clarita Valley ― Former Orchard Supply Hardware location
- 42,390 sf Stater Bros. at 1001 N. Grand Avenue, Eastern San Gabriel Valley ― Former Albertson’s space
- 40,000 sf Hobby Lobby at Shopping at The Rose, Oxnard/Port Hueneme
- 25,930 sf Antelope Valley Partners for Health at 44226 10th Street W., Antelope Valley ― Public health planning services
- Q2 completed new construction included nine retail buildings totaling 226,729 sf. Over the past year, a total of 1,2779,629 sf of retail has been built in LA.
Sources: Co-Star and Coreland Companies