The closing of major retailers such as Sports Authority and Sports Chalet might have dominated mid-year headlines, but vacancy rates continued to decline across Southern California through third quarter. The Inland Empire fell from 8.4 to 7.9% vacancy, Los Angeles County improved to 4.0% and Orange County fell below 4% to 3.9%. Major leases signed across Southern California continue to showcase a variety of fitness, entertainment and medical uses, in addition to the expansion of national retailers such as Hobby Lobby, Orchard Supply Hardware and Home Goods.
Q3 Retail Report – Orange County
| ORANGE COUNTY | Q3 2016 | Q2 2016 | Q3 2015 | % Change v. Q3 2015 |
|---|---|---|---|---|
| Vacancy Rate | 3.9% | 4.2% | 4.0% | -2.5% |
| Net Absorption | 239,476 sf | 141,291 sf | 254,313 sf | -5.8% |
| Vacant Space | 91,897 sf | 83,353 sf | 180,023 sf | -49.0% |
| New Construction Delivered | 17,100 sf | 33,307 sf | 3,300 sf | –% |
| Unemployment (OC) | 3.9% | 3.6% | 4.0% | -2.5% |
Largest OC lease signings of Q3 include:
- 46,169 sf 24 Hour Fitness at North Fullerton Shopping Center at 130 E Imperial Highway, Fullerton – Former Office Depot
- 34,200 sf CGV Cinema at The Source at 6988 Beach Blvd., Buena Park – New development
- 33,500 sf 24 Hour Fitness at Huntington South Center at 9021-9151 Atlanta Ave., Huntington Beach – Former Albertson’s
- 30,250 sf Circus Trix/Hawktopus (indoor trampoline and rec park) at Mission Viejo Freeway Center at 25222 El Paseo Road, Mission Viejo – Former Borders Books and Wick’s Furniture site
Q3 Retail Report – Los Angeles County
| LOS ANGELES | Q3 2016 | Q2 2016 | Q3 2015 | % Change v. Q3 2015 |
|---|---|---|---|---|
| Vacancy Rate | 4.0% | 4.2% | 4.5% | -11.1% |
| Net Absorption | 919,330 sf | 1,219,661 sf | 1,154,368 sf | -99.9% |
| Vacant Space | 951,261 sf | 1,059,190 sf | 752,994 sf | 26.3% |
| New Construction Delivered | 169,487 sf | 436,464 sf | 706,102 sf | –% |
| Unemployment (LA) | 5.3% | 4.3% | 7.0% | -24.3% |
Largest LA lease signings in Q3 included:
- 55,000 sf Hobby Lobby at Destination 08 at NEC 14 Freeway & 10th Street West, Palmdale
- 40,000 sf Tractor Supply Co. at Mission Bell Plaza at 395-399 W. Los Angeles Ave., Moorpark – Former Do-it Center
- 37,446 sf Orchard Supply Hardware at Friendly Hills Marketplace at 15311 Whittier Blvd., Los Angeles – New development
- 28,217 sf Pomona Valley Hospital Medical Center at 2317 Foothill Blvd., La Verne – Former Marshalls
- 20,039 sf Home Goods at Friendly Hills Marketplace at 15311 Whittier Blvd., Los Angeles – New development
Q3 Retail Report – Inland Empire
| INLAND EMPIRE | Q3 2016 | Q2 2016 | Q3 2015 | % Change v. Q3 2015 |
|---|---|---|---|---|
| Vacancy Rate | 7.9% | 8.4% | 8.3% | -4.8% |
| Net Absorption | 862,530 sf | 320,023 sf | 158,869 sf | 442.9% |
| Vacant Space | 643,597 sf | 677,850 sf | 578,431 sf | 11.3% |
| New Construction Delivered | 230,233 sf | 127,485 sf | 289,157 sf | –% |
| Unemployment (Riv Cty) | 6.9% | 5.4% | 7.0% | -1.4% |
Largest IE lease signings of Q3 include:
- 18,552 sf ALDI at 29716 Via Las Colinas Rd., Riverside – New development
- 18,311 sf Get Air Victorville at Village Center at 12410 A Amargosa Road, Victorville – Former CostPlus
- 17,962 sf Crunch Fitness at California Oaks Center at 40685 California Oaks Road, Murrieta – Former sub-divided Ralphs that also includes Barons Market
Sources: California Employment Development Department; Co-Star; Coreland Companies