08 Feb 2018

RETAIL ROUNDUP: Fourth Quarter 2017 Retail Market Highlights

Retail-Trends-Q4lStable market conditions remained across the Greater Los Angeles region at the close of 2017. Vacancy improved slightly with the Inland Empire improving from a rate of 7.5% to 6.9%. More than 1 million square feet of new construction was delivered, and all counties recorded positive absorption: Los Angeles (1,602,540 sf), Inland Empire (1,425,609 sf) and Orange County (199,187 sf). Overall, 2017 came to an end with favorable market fundamentals and a positive outlook for 2018 thanks to a holiday season which saw an increase in consumer spending according to ICSC.

Q4 Retail Report – Los Angeles County

LOS ANGELES Q4 2017 Q3 2017 Q4 2016 % Change v. Q4 2016
Vacancy Rate 3.7% 4.0% 4.0% -7.5%
Net Absorption 1,602,504 sf 829,624 sf 493,902 sf 224.5%
Vacant Space 848,486 sf 856,929 sf 1,291,619 sf -34.3%
New Construction Delivered 618,709 sf 448,918 sf 189,191 sf 227.0%
Unemployment (LA) 4.2% 5.4% 4.8% -12.5%

 

Largest LA lease signings in Q4 included:

  • 79,996 sf at 7279 Rosemead Blvd., San Gabriel – Former Kohl’s
  • 57,617 sf Bob’s Discount Furniture at Fallbrook Center, 6651 N. Fallbrook Ave., West Hills – Former Kohl’s
  • 33,448 sf Bob’s Discount Furniture at Midtown Crossing, 4550 W. Pico Avenue, Los Angeles – Former Sports Authority
  • 32,229 sf at 21212 Avalon Blvd., Carson – One building of former auto dealership

 

Q4 Retail Report – Orange County

ORANGE COUNTY Q4 2017 Q3 2017 Q4 2016 % Change v. Q4 2016
Vacancy Rate 4.0% 4.1% 3.9% 2.6%
Net Absorption 199,187 sf -6,629 sf -158,879 sf -225.4%
Vacant Space 326,051 sf 316,867 sf 311,273 sf 4.7%
New Construction Delivered 57,890 sf 77,709 sf 72,768 sf -20.4%
Unemployment (LA) 2.8% 4.2% 3.7% -24.3%

 

Largest OC lease signings of Q4 include:

  • 88,688 sf Furniture City at Bristol Marketplace at 1351 N. 17th Street, Santa Ana – Former Kohl’s
  • 44,800 sf Chuze Fitness at Walmart Shopping Center at 117 N. Beach Blvd., Anaheim – Former Walmart, downsized for Neighborhood Market
  • 32,000 sf Tokyo Central Market at 18171 Imperial Highway, Yorba Linda – Redeveloped former Yorba Linda Bowl site that never opened as The Fresh Market
  • 18,705 sf Planet Fitness at Home Ranch Center, 18601-18659 Yorba Linda Blvd., Yorba Linda
  • 16,310 sf Blink Fitness at Brookhurst Center, 901-939 S. Brookhurst St., Anaheim
  • 15,400 sf Grocery Outlet at Vons Shopping Center, 22475 El Toro Road, Lake Forest – Former Fresh & Easy

 

Q4 Retail Report – Inland Empire

INLAND EMPIRE Q4 2017 Q3 2017 Q4 2016 % Change v. Q4 2016
Vacancy Rate 6.9% 7.5% 7.5% -8.0%
Net Absorption 1,425,609 sf 235,661 sf 921,022 sf 54.8%
Vacant Space 426,759 sf 475,947 sf 667,038 sf -36.0%
New Construction Delivered 423,059 sf 288,770 sf 179,893 sf 135.2%
Unemployment (Riv Cty) 4.3% 6.5% 5.7% -24.6%

 

Largest IE lease signings of Q4 include:

  • 34,849 sf Aerosports at McKinley Crossroads, 275 Teller Street, Corona – Long-time vacancy
  • 25,590 sf at Renaissance Marketplace, 210 Fwy. & Ayala Dr., Rialto – New ground-up development
  • 18,555 sf Grocery Outlet at Renaissance Marketplace, 210 Fwy. & Ayala Dr., Rialto – New ground-up development
  • 18,209 sf Planet Fitness at Winchester Meadows, 40335 Winchester Road, Temecula – Former subdivided Ralphs

 

Sources: California Employment Development Department; Co-Star; Coreland Companies

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