The Southern California retail market experienced little change in this post-holiday quarter. The vacancy rate improved in Los Angeles and fell slightly across the Inland Empire and Orange County. While vacancy continues on a downward trend overall, the slight dip in Orange County can be attributed to new developments delivered, most notably, the 450,000-square-foot The Source in Buena Park and 191,000-square-foot Pacific City in Huntington Beach. Largest leases signed filled a number of the vacant Haggen Food & Pharmacy stores, as well as former Fresh & Easy locations.
Q1 Retail Report – Orange County
ORANGE COUNTY | Q1 2016 | Q4 2015 | Q1 2015 | % Change v. Q1 2015 |
---|---|---|---|---|
Vacancy Rate | 4.4% | 4.2% | 4.2% | 4.8% |
Net Absorption | 26,530 sf | 290,850 sf | 363,012 sf | -92.7% |
Vacant Space | 247,619 sf | 412,365 sf | 176,489 sf | 40.3% |
New Construction Delivered | 570,537 sf | 603,082 sf | 11,654 sf | –% |
Unemployment (OC) | 4.0% | 4.3% | 4.7% | -14.9% |
Largest OC lease signings of Q1 include:
- 76,000 sf Garden Grove Supermarket at Pavilion Plaza, 9852 Chapman Avenue, Garden Grove – Former vacant Vons Pavilions
- 38,068 sf Smart & Final at Trabuco Marketplace, 21672 Plano Trabuco Road, Trabuco Canyon – Former Haggen Food & Pharmacy
- 38,000 sf Medical Tenant at 1809 W. Chapman Avenue, Orange – Former family-owned Adray’s Appliance & Electronics vacant for 17 years
- 25,870 sf Crunch Fitness at 18081 Magnolia Street, Fountain Valley – Former ethnic market
- 20,000 sf Fresh Fair Farmers Market at Anaheim Hills Plaza, 420 S. Anaheim Hills Road, Anaheim Hills – Former Fresh & Easy
Q1 Retail Report – Los Angeles County
LOS ANGELES | Q1 2016 | Q4 2015 | Q1 2015 | % Change v. Q1 2015 |
---|---|---|---|---|
Vacancy Rate | 4.5% | 4.6% | 4.6% | -2.2% |
Net Absorption | 683,466 sf | 168,898 sf | 321,691 sf | 112.5% |
Vacant Space | 1,484,370 sf | 1,484,651 sf | 682,550 sf | –% |
New Construction Delivered | 178,052 sf | 711,805 sf | 192,822 sf | -7.7% |
Unemployment (LA) | 5.5% | 5.8% | 7.4% | -25.7% |
Largest LA lease signings in Q1 included:
- 45,000 sf LA Fitness at 29431 Agoura Road, Agoura Hills – Build-to-suit
- 40,518 sf Stater Bros. at 670 E. Los Angeles Avenue, Simi Valley – Former Haggen Food & Pharmacy
- 37,702 sf Smart & Final at Westlake Village Marketplace, 5770 Lindero Canyon Road, Westlake Village – Former Haggen Food & Pharmacy
- 25,600 sf Aldi at 1407 S. Baldwin Avenue, Arcadia – Occupying southern half of CVS store
- 24,460 sf Fields Market at 7621 Woodlake Avenue, Los Angeles – Second location for locally-owned neighborhood market
Q1 Retail Report – Inland Empire
INLAND EMPIRE | Q1 2016 | Q4 2015 | Q1 2015 | % Change v. Q1 2015 |
---|---|---|---|---|
Vacancy Rate | 8.4% | 8.3% | 8.3% | 1.2% |
Net Absorption | 50,881 sf | 50,031 sf | -17,103 sf | -397.5% |
Vacant Space | 654,088 sf | — sf | 581,506 sf | 12.5% |
New Construction Delivered | 247,010 sf | 146,424 sf | 70,200 sf | 251.9% |
Unemployment (Riv Cty) | 5.9% | 6.3% | 7.0% | -15.7% |
Largest IE lease signings of Q1 include:
- 24,580 sf Marshall’s at Elsinore Central Marketplace, 22674 Collier Avenue, Lake Elsinore – Ground-up neighborhood retail development
- 22,758 sf Sak’s Off 5th at El Paseo Square, 73595 El Paseo, Palm Desert – Former Office Max and Fresh Market location within renovated retail center
- 20,700 sf Aldi at Chino Spectrum Marketplace, 3808 Grand Avenue, Chino – Former Old Navy
- 13,969 sf Imagine Schools at Van Buren Plaza, 5700 Van Buren Blvd., Riverside – Former inline retail
Sources: California Employment Development Department; Co-Star; Coreland Companies