The mid-year report showcases consistent improvement across the Los Angeles, Orange County and Inland Empire markets. Vacancy rates improved slightly in LA and Orange County, while remaining consistent in the Inland Empire. Topping the lists of largest leases signed in Q2, are two of the announced 40+ Haggen stores that will be converted in Greater LA. All eyes should remain on these sites as the Northwest grocer vies for a share of the Southern California market.
Q2 Retail Report – Orange County
| ORANGE COUNTY | Q2 2015 | Q1 2015 | Q2 2014 | % Change v. Q2 2014 |
|---|---|---|---|---|
| Vacancy Rate | 4.3% | 4.4% | 4.8% | -10.42% |
| Net Absorption | 89,998 sf | 374,731 sf | 663,774 sf | 637.54% |
| Vacant Space | 203,447 sf | 176,489 sf | 406,805 sf | -49.99% |
| New Construction Delivered | 12,130 sf | 10,236 sf | 290,473 sf | -95.82% |
| Unemployment (OC) | 4.2% | 4.6% | 5.2% | -19.23% |
Largest lease signings of Q2 include:
- 50,145 sf Haggen Food & Pharmacy at Trabuco Marketplace, 21672 Plano Trabuco Road, Trabuco Canyon ― Former Albertson’s
- 20,000 sf H&M at The Source, Buena Park ― New development
- 15,894 sf Ammo Bros. at Brookhollow Showroom, 1554 E. Warner Ave., Santa Ana ― Long-term vacancy
- 9,440 sf Robbins Brothers at 3820 S. Bristol Street, Santa Ana ― Former Wachovia pad
- 8,260 sf G-Stage at Placentia Town Centre, 110-188 E. Yorba Linda Blvd, Yorba Linda
Q2 Retail Report – Los Angeles County
| LOS ANGELES | Q2 2015 | Q1 2015 | Q2 2014 | % Change v. Q2 2014 |
|---|---|---|---|---|
| Vacancy Rate | 4.6% | 4.7% | 5.1% | -9.80% |
| Net Absorption | 222,190 sf | 220,857 sf | 449,008 sf | -51.52% |
| Vacant Space | 810,559 sf | 695,450 sf | 816,402 sf | -0.72% |
| New Construction Delivered | 323,152 sf | 151,329 sf | 226,729 sf | 42.53% |
| Unemployment (LA) | 7.3% | 7.7% | 8.0% | -8.75% |
The largest lease signings in Q2 included:
- 53,429 sf Haggen Food & Pharmacy at 6240 Foothill Blvd., Tujunga ― Former Albertson’s/Sav-on
- 40,000 sf Nordstrom Rack at Janss Marketplace, 145 W. Hillcrest Drive, Thousand Oaks ― Occupying a portion of an existing Sears location
- 35,717 sf Zara at Glendale Galleria ― Part of multimillion dollar renovation and remodel efforts
- 33,262 sf Haggen Food & Pharmacy at 240 S. Diamond Bar Blvd., Diamond Bar ― Former Vons
- 17,250 sf Salvation Army at 1258 Saviers Road, Oxnard ― Long-standing vacancy
Q2 Retail Report – Inland Empire
| INLAND EMPIRE | Q2 2015 | Q1 2015 | Q2 2014 | % Change v. Q2 2014 |
|---|---|---|---|---|
| Vacancy Rate | 8.3% | 8.3% | 8.5% | -2.35% |
| Net Absorption | 407,111 sf | -17,103 sf | 281,515 sf | 44.61% |
| Vacant Space | 542,619 sf | 581,506 sf | 595,531 sf | -8.88% |
| New Construction Delivered | 365,430 sf | 70,200 sf | 297,403 sf | 22.87% |
| Unemployment (Riv Cty) | 6.4% | 6.9% | 7.8% | -17.95% |
The largest lease signings of Q2 include:
- 43,665 sf Chuze Fitness at Orchard Plaza, 9059 San Bernardino Rd., Rancho Cucamonga ― Former subdivided Orchard Supply Hardware
- 43,391 sf Just Bargains at Colton Courtyard, 1250 E. Washington St., Colton ― Former Big Lots
- 25,047 sf Sears Outlet at Corona MarketPlace, 1201-1222 Magnolia Avenue, Corona ― Former Rite Aid co-anchor space
- 24,238 sf Smart & Final at Bear Valley Shopping Center, 25050 Alessandro Blvd., Moreno Valley ― Former (dark) Fresh & Easy
- 20,020 sf 99 Cents Only at Rancherias Plaza Shopping Center, 20180 Highway 18, Apple Valley
Sources: California Employment Development Department; Co-Star; Coreland Companies