Transaction activity did not slow as 2016 came to a close. Vacancy rates remained steady in fourth quarter across Orange and Los Angeles counties, and took a step forward in the Inland Empire improving from 7.9 to 7.5%. Off-price retailers, such as SteinMart, TJ Maxx and dd’s Discounts showcased below, remain among the most active with a strong pipeline of transactions expected to come to market in the first half of 2017. Retailers continue to reevaluate brick-and-mortar strategies, introducing alternative formats such as Target’s flex-format location slated to open in Orange in Fall 2017.
Q4 Retail Report – Orange County
ORANGE COUNTY | Q4 2016 | Q3 2016 | Q4 2015 | % Change v. Q3 2015 |
---|---|---|---|---|
Vacancy Rate | 3.9% | 3.9% | 4.2% | -7.1% |
Net Absorption | -158,879 sf | 239,476 sf | 290,850 sf | -154.6% |
Vacant Space | 311,273 sf | 91,897 sf | 412,365 sf | -24.5% |
New Construction Delivered | 72,768 sf | 17,100 sf | 306,082 sf | –% |
Unemployment (OC) | 3.7% | 4.3% | 4.1% | -9.8% |
Largest OC lease signings of Q4 include:
- 41,545 sf Target (flex format) at Rusty Leaf Plaza at 133 S Yorba Street, Orange – Former Ralph’s
- 18,500 sf CostPlus World Market at The Market Place, 13682 Jamboree Road, Irvine – Former Loehmann’s
- 16,500 sf at 401 N East Street, Anaheim – Former Jax Market
- 15,832 sf at The Market Place at 2782 El Camino Real, Tustin
- 15,476 sf Octapharma at 10870 Katella Avenue, Garden Grove – Former Kmart, subdivided into Gold’s Gym and Smart & Final
Q4 Retail Report – Los Angeles County
LOS ANGELES | Q4 2016 | Q3 2016 | Q4 2015 | % Change v. Q3 2015 |
---|---|---|---|---|
Vacancy Rate | 4.0% | 4.0% | 4.6% | -13.0% |
Net Absorption | 493,902 sf | 919,330 sf | 194,201 sf | 154.3% |
Vacant Space | 1,291,619 sf | 951,261 sf | 1,484,651 sf | -13.0% |
New Construction Delivered | 189,191 sf | 169,487 sf | 711,805 sf | –% |
Unemployment (LA) | 4.8% | 5.3% | 5.8% | -17.2% |
Largest LA lease signings in Q4 included:
- 60,000 sf Gaju Market at California Marketplace at 450 S Western Ave., Los Angeles – Renovation of former California Market
- 41,600 sf TJ Maxx/Home Goods at Amara at 100 S. Springdale Drive, Camarillo – New development
- 37,277 sf Stein Mart at 22741 Victory Blvd., Woodland Hills – Former OSH
- 32,000 sf Stein Mart at Foothill Plaza at 1335 Foothill Blvd., LaVerne – Former Healthy Farms Market
- 25,009 sf MonkeySports at Plaza di Northridge at Plummer St. & Shirley Ave., Northridge – Long-time vacancy, first floor space
Q4 Retail Report – Inland Empire
INLAND EMPIRE | Q4 2016 | Q3 2016 | Q4 2015 | % Change v. Q3 2015 |
---|---|---|---|---|
Vacancy Rate | 7.5% | 7.9% | 8.2% | -8.5% |
Net Absorption | 921,022 sf | 862,530 sf | 118,477 sf | 677.4% |
Vacant Space | 667,038 sf | 643,597 sf | 802,238 sf | -16.9% |
New Construction Delivered | 179,893 sf | 230,233 sf | 146,424 sf | –% |
Unemployment (Riv Cty) | -8.5% | 677.4% | -16.9% | -6.6% |
Largest IE lease signings of Q4 include:
- 35,250 sf Sprouts at Alta Loma Plaza at 6701 Carnelion Street, Rancho Cucamonga – Former Ralphs and then Island Pacific Market
- 34,103 sf Aero Sports Trampoline Park at Murrieta Crossings at 39729 Avenida Acecias, Murrieta – Former Linder’s Furniture
- 25,631 sf dd’s Discounts at 2522 Grove Avenue, Ontario – Former Albertson’s, sub-divided with 99-Cent Only store
Sources: California Employment Development Department; Co-Star; Coreland Companies