The 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