By Richard Berger | May 28, 2025 | As published by GlobeSt.com
Orange County’s retail market has become increasingly competitive due to a significant lack of available space, according to JLL’s quarterly retail report. In the first three months of 2025, retail availability dropped to just 3.8%, only slightly above the historic low of 3.5% recorded in the fourth quarter of 2007. While recent closures of big-box stores like 99 Cents Only have opened up some opportunities, the pace of retail space demolitions continues to surpass new construction and much of the obsolete inventory is being repurposed for other uses.
Matt Hammond, principal at Coreland Companies, told GlobeSt.com that the limited new supply has benefited existing retail properties, especially in B and C centers. “Specifically, in the Orange County market, there is tremendous opportunity for value-add ownership groups that can invest,” he said. Hammond pointed to former Big Lots and 99 Cents Only centers, where new tenants such as Sprouts and Amazon Fresh are driving significant repositioning efforts and tenancy upgrades. He added, “At every scale, well-located centers are capitalizing on the opportunity. For example, an older 85,000-square-foot neighborhood center in an Orange County suburb recently underwent a full remodel. The remodel was barely underway when a high-end pet hospital took the anchor space and re-energized leasing efforts throughout. The center is 100% leased with rents that exceed market value.”
JLL’s report indicates that the scarcity of retail space is likely to persist, as new development remains minimal. As of the first quarter of 2025, only 180,000 square feet of retail space—just 0.1% of the existing inventory—was under construction. Dan Tyner, managing director at JLL, told GlobeSt.com that the Orange County and broader Southern California retail markets are performing well in 2025. “With limited new construction, steady rent growth, and historically low vacancy rates, existing retail centers are in high demand, largely due to their stable and robust performance,” he said. He added that grocery-anchored retail is particularly attractive to investors, as grocery stores have historically outperformed other retail assets. The region’s strong fundamentals and solid demographics continue to benefit Orange County retail properties.
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