02 Aug 2017

RETAIL ROUNDUP: Second Quarter 2017 Retail Market Highlights

The mid-year report showcases stability across Los Angeles and Orange counties, and slight gains in the Inland Empire thanks to new construction deliveries and an improving unemployment rate. Vacancy rates remained at 4.2% in Orange County and 7.5% in the Inland Empire, and increased slightly from 4.0 to 4.3% in Los Angeles. Per CoStar data, average asking rents are up over previous quarters across the region. The Inland Empire saw gains in construction, bringing 277,839 square feet of new space to market thanks to the completion of a 200,000-square-foot Walmart at Rialto Marketplace. See below for largest second quarter leases signed.

 

Q2 Retail Report – Los Angeles County

LOS ANGELES Q2 2017 Q1 2017 Q2 2016 % Change v. Q2 2016
Vacancy Rate 4.3% 4.0% 4.2% 2.4%
Net Absorption -7,353 sf 351,365 sf 1,219,661 sf -100.0%
Vacant Space 1,285,101 sf 1,271,741 sf 1,059,190 sf 21.3%
New Construction Delivered 419,485 sf 189,191 sf 436,464 sf -3.9%
Unemployment (LA) 4.1% 4.8% 4.3% -4.7%

 

Largest LA lease signings in Q2 included:

  • 43,595 sf Burlington Stores at Torrance Promenade, 19800 Hawthorne Blvd., Torrance – Former Sears
  • 27,839 sf Home Goods at Palmdale Marketplace, 39180 10th Street W, Palmdale – Former Sports Chalet
  • 26,666 sf Ross at Glendale Marketplace, 124 S. Brand Avenue, Glendale – Long-time vacant second level space, 35,500 sf subdivided
  • 26,255 sf Ross Dress for Less at Covina Marketplace, 1423 N. Azusa Ave., Covina – Former Office Depot

 

Q2 Retail Report – Orange County

ORANGE COUNTY Q2 2017 Q1 2017 Q2 2016 % Change v. Q2 2016
Vacancy Rate 4.2% 4.2% 4.2%
Net Absorption -107,821 sf -132,284 sf 141,291 sf -176.3%
Vacant Space 362,870 sf 384,544 sf 83,353 sf 335.3%
New Construction Delivered 52,098 sf 403,609 sf 33,307 sf 56.5%
Unemployment (LA) 3.2% 3.7% 3.6% -11.1%

 

Largest OC lease signings of Q2 include:

  • 33,619 sf Grocery Outlet/Planet Fitness at Fullerton Square, 104-174 N. Raymond Ave., Fullerton – Former Sports Authority
  • 20,667 sf House of Blues at Anaheim Gardenwalk, 400 West Disney Way, Anaheim – Former UltraLuxe Cinemas
  • 14,850 sf Trader Joe’s at Mission Village Center, 32151 Camino Capistrano, San Juan Capistrano – Former Big Lots
  • 14,794 sf JD Classics at 4040 Campus Drive, Newport Beach – Former Newport European Motor Cars

 

Q2 Retail Report – Inland Empire

INLAND EMPIRE Q2 2017 Q1 2017 Q2 2016 % Change v. Q2 2016
Vacancy Rate 7.5% 7.5% 8.4% -10.7%
Net Absorption 359,404 sf -80,548 sf 320,023 sf 12.3%
Vacant Space 600,667 sf 664,956 sf 677,850 sf -11.4%
New Construction Delivered 277,839 sf 84,937 sf 127,485 sf 117.9%
Unemployment (Riv Cty) 4.6% 5.5% 5.4% -6.8%

 

Largest IE lease signings of Q2 include:

  • 35,277 sf EOS Fitness at Vail Ranch Plaza, Apis Road & Temecula Parkway, Temecula – Former Sports Authority
  • 27,528 sf Smart & Final extra! at 332 W. Baseline, Highland – Redevelopment of Smart & Final location
  • 20,909 sf Planet Fitness at Village Walk, 24380 Village Walk Place, Murrieta – Former Circuit City, vacant since 2008
  • 20,000 sf Harbor Freight at Stage Coach Plaza, 3317 W. Ramsey, Banning – Former Big Lots
  • 17,767 sf National Fitness Club at Rancho Verde Plaza, 2000-2026 N. Riverside Ave., Rialto – Sub-divided 32K sf pad building, long-time vacancy

 

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

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