The Los Angeles, Orange County and Inland Empire markets did not experience much change in Q4, 2014. Vacancy rates remained stable with the exception of the Inland Empire which dropped to 7.8% from 8.3%. Overall, the year’s close was positive, solidifying the strength of the Southern California market with vacancy rates far below the 6.1% national average.
Q4 Retail Report – Orange County
| ORANGE COUNTY | Q4 2014 | Q3 2014 | Q4 2013 | % Change v. Q3 2013 |
|---|---|---|---|---|
| Vacancy Rate | 4.7% | 4.7% | 5.2% | -9.62% |
| Net Absorption | 138,905 sf | 250,685 sf | 350,961 sf | -60.42% |
| Vacant Space | 414,721 sf | 345,515 sf | 463,159 sf | -10.46% |
| New Construction Delivered | 62,085 sf | 32,040 sf | 103,856 sf | -40.22% |
| Unemployment (OC) | 5.0% | 5.4% | 5.8% | -13.79% |
Largest lease signings of Q4 include:
- 23,430 sf Savers at 4848 Valley View Ave., Yorba Linda ― Former sub-divided Vons with 24-Hour Fitness
- 22,459 sf at 250 N. Harbor Blvd., La Habra ― Formerly sub-divided Big Lots, leased to Family Dollar and Pizza Restaurant
- 16,600 sf Kiddie Academy at 16655 Noyes Avenue, Irvine ― Sale-leaseback
- 14,059 sf East Seafood Buffet at 11100 Garden Grove Blvd., Garden Grove ― Former Office Depot
- 12,000 sf at 900 W. Coast Hwy, Newport Beach ― Former West Marine location
Q4 Retail Report – Los Angeles County
| LOS ANGELES | Q4 2014 | Q3 2014 | Q4 2013 | % Change v. Q3 2013 |
|---|---|---|---|---|
| Vacancy Rate | 4.7% | 4.8% | 5.2% | -9.62% |
| Net Absorption | 627,255 sf | 706,774 sf | 750,866 sf | -16.46% |
| Vacant Space | 779,214 sf | 712,753 sf | 863,091 sf | -9.72% |
| New Construction Delivered | 197,367 sf | 338,209 sf | 396,757 sf | -50.25% |
| Unemployment (LA) | 7.9% | 8.5% | 9.1% | -13.18% |
The largest lease signings in Q4 included:
- 33,400 sf at Inglewood MarketPlace
- 30,000 sf Planet Fitness at MidTown Shopping Center, Los Angeles ― Former Orchard Supply Hardware
- 28,580 sf ALDI Food Market at Simi at the Plaza, Moorpark ― Former Office Depot
- 25,632 sf JoAnn Fabrics and Crafts at Covina Town Square, Covina ― Former Staples
- 21,440 sf 99-Cent Only at Sylmar Shopping Center, 13203 Gladstone Ave., Sylmar
Q4 Retail Report – Inland Empire
| INLAND EMPIRE | Q4 2014 | Q3 2014 | Q4 2013 | % Change v. Q3 2013 |
|---|---|---|---|---|
| Vacancy Rate | 7.8% | 8.3% | 8.1% | -3.70% |
| Net Absorption | -166,868 sf | 255,288 sf | 66,048 sf | -352.65% |
| Vacant Space | 10.49M sf | 10.32M sf | 10.93M sf | -4.03% |
| New Construction Delivered | — | 73,097 sf | — | — |
| Unemployment (Riv Cty) | 8.2% | 9.2% | 9.5% | -13.68% |
The largest lease signings of Q4 include:
- 17,266 sf at 319 W. Holt Blvd., Ontario
- 13,969 sf 99-Cent Only at 22985 Cottonwood Ave., Moreno Valley ― Former Fresh & Easy
- 13,200 sf Indian Sweet & Spice Market at 9741 Magnolia Ave., Riverside ― Former independent furniture store
- 10,438 sf at 1625 Industrial Park Ave., Redlands ― Former Marie Callender’s Restaurant
- 8,760 sf 99-Cent Only at 17525 Arrow Blvd., Fontana ― Former independent 99-cent store
Sources: California Employment Development Department; Co-Star; Coreland Companies