15 Nov 2017

RETAIL ROUNDUP: Third Quarter 2017 Retail Market Highlights

Q3-Retail-RoundupThe 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

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