By Nellie Day | May/June 2025 | As published by California Centers
The view from many of California’s top-tier retail destinations is impressive — and we’re not talking about the 20-foot tall hand-painted mural or the fountain guests can control with their bodies (though those elements don’t hurt). Instead, it’s the noteworthy monikers impeccably displayed above each store.
It’s Eataly and Apple. Lululemon and Luna Grill. Mejuri and Mendocino Farms. Sprinkled in, of course, are the Tesla showrooms, the local artisanal jewelry brand making waves and Din Tai Fung.
You know your center has arrived when Din Tai Fung comes knocking.
Class A centers have always aligned well with California’s aspirational lifestyle, which often touts quiet (or loud) luxury, an appreciation for aesthetics and an enthusiasm for those extras that can make our lives just a little easier or better — ideally both.
Yes, these centers have long existed, but competition for space within their Instagrammable walls persist. This is partly due to the lack of new retail construction within the state, making the existing spaces even more coveted.
“With sub-6 percent vacancy rates across Southern California, rents at Class A retail centers have not decreased,” says Chris Premac, vice president of Coreland Companies in Tustin. “Across the board, tenants do not want to miss out when these premium spaces come to market.”
What some are happy to pass up is space in B and C centers. Craig Killman, managing director of JLL in San Diego, thinks he knows why.
“The flight to quality in retail real estate is being driven by several interconnected factors that reflect changing market dynamics, consumer behaviors and brand strategies,” he explains. “High-quality centers tend to attract more foot traffic and generate higher sales per square foot, which is crucial for retailers facing competition from ecommerce.”
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