The Greater Los Angeles region experienced little change in market conditions in the third quarter of 2017, with Los Angeles County experiencing the largest decrease in vacancy going from 4.3% to 4.0%. Overall, favorable market fundamentals remain despite continuous shifts in the retail industry. Recent activity is highlighted by the backfilling of vacant box- and mid-box locations. Former Sports Chalets, Sports Authority, Staples and Kohl’s newly leased to Target, Urban Home, Planet Fitness and Hobby Lobby, for example.
Q3 Retail Report – Los Angeles County
| LOS ANGELES | Q3 2017 | Q2 2017 | Q3 2016 | % Change v. Q3 2016 |
|---|---|---|---|---|
| Vacancy Rate | 4.0% | 4.3% | 4.0% | –% |
| Net Absorption | 829,624 sf | -7,353 sf | 919,330 sf | -9.8% |
| Vacant Space | 856,929 sf | 1,285,101 sf | 951,261 sf | -9.9% |
| New Construction Delivered | 448,918 sf | 419,485 sf | 169,487 sf | 164.9% |
| Unemployment (LA) | 5.4% | 4.1% | 5.3% | 1.9% |
Largest LA lease signings in Q3 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
Q3 Retail Report – Orange County
| ORANGE COUNTY | Q3 2017 | Q2 2017 | Q3 2016 | % Change v. Q3 2016 |
|---|---|---|---|---|
| Vacancy Rate | 4.1% | 4.2% | 3.9% | 5.1% |
| Net Absorption | -6,629 sf | -107,821 sf | 239,476 sf | -102.8% |
| Vacant Space | 316,867 sf | 362,870 sf | 91,897 sf | 244.8% |
| New Construction Delivered | 77,709 sf | 52,098 sf | 17,100 sf | 354.4% |
| Unemployment (LA) | 4.2% | 3.2% | 4.3% | -2.3% |
Largest OC lease signings of Q3 include:
- 67,000 sf Hobby Lobby at Cypress East Shopping Center at 10031-10201 Valley View Street, Cypress – Former Kohl’s
- 29,181 sf Urban Home at Irvine Spectrum, 700 Spectrum Center Drive, Irvine – Former Sports Authority
- 24,045 sf Planet Fitness at Foothill Ranch Towne Centre, 26660-26682 Portola Parkway, Foothill Ranch – Former Staples
- 10,981 sf We Play Loud at 7454 Edinger Avenue, Huntington Beach – Former xxx
Q3 Retail Report – Inland Empire
| INLAND EMPIRE | Q3 2017 | Q2 2017 | Q3 2016 | % Change v. Q3 2016 |
|---|---|---|---|---|
| Vacancy Rate | 7.5% | 7.5% | 7.9% | -5.1% |
| Net Absorption | 235,661 sf | 359,404 sf | 862,530 sf | -72.7% |
| Vacant Space | 475,947 sf | 600,667 sf | 643,597 sf | -26.0% |
| New Construction Delivered | 288,770 sf | 277,839 sf | 230,233 sf | 25.4% |
| Unemployment (Riv Cty) | 6.5% | 4.6% | 6.9% | -5.8% |
Largest IE lease signings of Q3 include:
- 56,561 sf Cinemark at Renaissance Marketplace, 210 Fwy. & Ayala Dr., Rialto – New ground-up development
- 43,560 sf LA Fitness at Gateway to Temecula, Temecula Parkway & La Paz Road – New ground-up development
- 41,200 sf dd’s Discounts at Montclair East Shopping Center, 5391-5467 Moreno Street, Montclair – Former Sports Authority
Sources: California Employment Development Department; Co-Star; Coreland Companies