RETAIL ROUNDUP: Second Quarter 2016 Retail Market Highlights

News

Q2-Retail-RoundupThe mid-year report shows a continuing decline in vacancy rates across the region, highlighted by significant net absorption throughout Los Angeles, Orange County and the Inland Empire. While second quarter’s largest lease signings in LA and OC were modest in size, the Inland Empire saw a number of mid- and big-box spaces absorbed by active national tenants such as Hobby Lobby, Marshalls, 24-Hour Fitness and Planet Fitness.

 

Q2 Retail Report – Orange County

ORANGE COUNTY Q2 2016 Q1 2016 Q2 2015 % Change v. Q2 2015
Vacancy Rate 4.2% 4.4% 4.3% -4.5%
Net Absorption 141,291 sf 26,530 sf 89,998 sf 432.6%
Vacant Space 83,353 sf 247,619 sf 203,447 sf -66.3%
New Construction Delivered 33,307 sf 570,537 sf 12,130 sf –%
Unemployment (OC) 3.6% 4.0% 4.2% -10.0%

 

Largest OC lease signings of Q2 include:

  • 28,560 sf Industrial Tenant at 301 S State College Blvd., Fullerton – Former Linder’s Furniture Store
  • 27,000 sf Roasting Water at 7822 Warner Ave., Huntington Beach – Former Regency Charter Centre Cinemas
  • 15,583 sf Fine Living Furniture at 2231 N Tustin Ave., Santa Ana – Former King’s Home Furnishings
  • 15,000 sf Planet Fitness at 720 N Tustin Street, Orange – Former fabric store
  • 11,472 sf Wagly Pet Services at Newport Camino Plaza, 13942-13982 Newport Avenue, Tustin – Former PetCo

 

Q2 Retail Report – Los Angeles County

LOS ANGELES Q2 2016 Q1 2016 Q2 2015 % Change v. Q2 2015
Vacancy Rate 4.2% 4.5% 4.6% -6.7%
Net Absorption 1,219,661 sf 683,466 sf 222,190 sf 18K%
Vacant Space 1,059,190 sf 1,484,370 sf 810,559 sf -28.6%
New Construction Delivered 436,464 sf 178,052 sf 323,152 sf –%
Unemployment (LA) 4.3% 5.5% 7.3% -21.8%

 

Largest LA lease signings in Q2 included:

  • 47,178 sf Home Goods/TJ Maxx at Shamrock Center at 723-727 E Huntington Drive, Monrovia – Subdivided portion of former Albertson’s
  • 26,668 sf at Pico Market at 2301 Pico Blvd., Santa Monica – Renovated office building
  • 23,200 sf O’Reilly Auto Parts at 7019 Atlantic Ave., Bell
  • 20,497 sf Indian Style at Melrose High Street at 8650 Melrose Ave., West Hollywood – Redeveloped site
  • 19,772 sf at 15731 Gale Ave., La Puente – Former Fine Living Furniture

 

Q1 Retail Report – Inland Empire

INLAND EMPIRE Q2 2016 Q1 2016 Q2 2015 % Change v. Q2 2015
Vacancy Rate 8.4% 8.4% 8.3% 0.0%
Net Absorption 320,023 sf 50,881 sf 407,111 sf 529.0%
Vacant Space 677,850 sf 654,088 sf 542,619 sf 3.6%
New Construction Delivered 127,485 sf 247,010 sf 365,430 sf –%
Unemployment (Riv Cty) 5.4% 5.9% 6.4% -8.5%

 

Largest IE lease signings of Q2 include:

  • 55,000 sf Hobby Lobby at 2663 Canyon Springs Parkway, Riverside – Subdivided portion of former Walmart Supercenter
  • 45,657 sf Big Al’s at Ontario Center at 4120 E. 4th Street, Ontario – Former Best Buy
  • 44,000 sf Stater Bros. at Norco Village at corner of Rover Road & Corydon Street – Ground-up development
  • 43,500 sf 24-Hour Fitness at Madison Plaza at 3490 Madison Street, Riverside – Redevelopment
  • 23,000 sf Marshalls at Sun Lakes Village Shopping Center at 300 S Highland Springs Ave., Banning
  • 20,900 sf Planet Fitness at Village Walk Plaza at Madison Ave. & Kalmia Street, Murrieta – Former Circuit City
  • 20,612 sf Home Goods at Countryside Marketplace at 30038 Haun Road, Menifee – Subdivided former Sports Chalet
  • 20,612 sf Forever 21 at Countryside Marketplace at 30038 Haun Road, Menifee – Subdivided former Sports Chalet

 

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