Market fundamentals remain positive across Southern California at the close of the third quarter. Vacancy rates continue to decrease in Orange and Los Angeles counties, and remain stable throughout the Inland Empire. Los Angeles County saw significant net absorption alongside the delivery of more than 700,000 square feet of new construction. Largest leases signed included the likes of Orchard Supply Hardware, LA Fitness, 24-Hour Fitness, Walmart Neighborhood Market and newcomer to the market, Star World.
Q3 Retail Report – Orange County
| ORANGE COUNTY | Q3 2015 | Q2 2015 | Q3 2014 | % Change v. Q3 2014 |
|---|---|---|---|---|
| Vacancy Rate | 4.0% | 4.3% | 4.8% | -14.89% |
| Net Absorption | 254,313 sf | 89,998 sf | 250,685 sf | 1.45% |
| Vacant Space | 180,023 sf | 203,447 sf | 345,515 sf | -47.9% |
| New Construction Delivered | 3,300 sf | 12,130 sf | 32,040 sf | -89.7% |
| Unemployment (OC) | 4.5% | 4.2% | 5.8% | -22.41% |
Largest lease signings of Q3 include:
- 44,100 sf Orchard Supply Hardware at 8030 Dale Street, Buena Park
- 36,700 sf Big Lots at La Habra Imperial Promenade, La Habra ― Former Circuit City location
- 33,287 sf Maiselle Fine Furnishings at Foothill Ranch Town Centre, Foothill Ranch ― Former Babies R Us/Toys R Us
- 20,550 sf Home Goods at Woodbury Town Center, 6214 Irvine Blvd., Irvine
- 17,620 sf UFC Gym, Crown Valley Mall, 30272 Crown Valley Parkway, Laguna Niguel ― Former warehouse space
Q3 Retail Report – Los Angeles County
| LOS ANGELES | Q3 2015 | Q2 2015 | Q3 2014 | % Change v. Q3 2014 |
|---|---|---|---|---|
| Vacancy Rate | 4.5% | 4.6% | 4.8% | -6.25% |
| Net Absorption | 1,154,368 sf | 222,190 sf | 706,774 sf | 6.33% |
| Vacant Space | 752,994 sf | 810,559 sf | 712,753 sf | 5.65% |
| New Construction Delivered | 706,102 sf | 323,152 sf | 338,209 sf | 108.78% |
| Unemployment (LA) | 7.0% | 7.3% | 8.6% | -18.61% |
The largest lease signings in Q3 included:
- 40,755 sf Walmart Neighborhood Market at Diamond Bar Town Centre, 1180 South Diamond Bar Blvd., Diamond Bar ― Former Ralphs
- 37,000 sf LA Fitness at Chanel Islands Center, Oxnard ― Soon-to-be renovated vacant Kmart site
- 31,000 sf Smart & Final at Chanel Islands Center, Oxnard ― Soon-to-be renovated vacant Kmart site
- 26,000 sf Star World at Chanel Islands Center, Oxnard ― New appliance and electronics company occupying the soon-to-be renovated vacant Kmart site
- 23,700 Grocery Outlet at Main Avenue Marketplace, 4203 Maine Ave., Baldwin Park ― Former Fallas Paredes
Q3 Retail Report – Inland Empire
| INLAND EMPIRE | Q3 2015 | Q2 2015 | Q3 2014 | % Change v. Q3 2014 |
|---|---|---|---|---|
| Vacancy Rate | 8.3% | 8.3% | 8.3% | — |
| Net Absorption | 158,869 sf | 407,111 sf | 255,288 sf | -37.77% |
| Vacant Space | 578,431 sf | 542,619 sf | 505,873 sf | 14.34% |
| New Construction Delivered | 289,157 sf | 365,43 sf | 73,097 sf | 295.58% |
| Unemployment (Riv Cnty) | 7.0% | 6.4% | 8.8% | -20.46% |
The largest lease signings of Q3 include:
- 40,038 sf 24-Hour Fitness at Tri-City Centre, 885-897 Harriman, San Bernardino
- 39,123 sf LA Fitness at Tri-City Centre, 555 E. Hospitality, San Bernardino ― Former Bally’s Total Fitness
- 22,000 sf Fallas Paredes at Inland Empire Center, 16805 Valley Blvd., Fontana ― Former FAMSA
- 16,830 sf Office Depot at 8160 Day Creek Blvd., Rancho Cucamonga ― Former Richmond American Homes Home Gallery
- 14,950 sf Guitar Center at The Shops at Canyon Crossings, 2550 Canyon Springs Parkway, Riverside ― Former Mattress Discounters
Sources: California Employment Development Department; Co-Star; Coreland Companies