The Los Angeles, Orange County and Inland Empire markets all experienced a slight improvement in market conditions in the first quarter of 2015. Vacancy rates dropped in Orange County and remained at 4.7% and 8.3% in LA County and Inland Empire, respectively. Most notable is the increase in tenant quality. A former independent market being leased to Sprouts in Glendale is just one example showcasing that discount, local tenants are no longer the only alternative.
Q1 Retail Report – Orange County
| ORANGE COUNTY | Q1 2015 | Q4 2014 | Q1 2014 | % Change v. Q1 2014 |
|---|---|---|---|---|
| Vacancy Rate | 4.4% | 4.7% | 5.2% | -15.4% |
| Net Absorption | 374,731 sf | 138,905 sf | 99,356 sf | 27.72% |
| Vacant Space | 176,489 sf | 347,734 sf | 414,721 sf | -57.44% |
| New Construction Delivered | 10,236 sf | 62,085 sf | 27,000 sf | 62.1% |
| Unemployment (OC) | 4.6% | 5.0% | 6.0% | -23.3% |
Largest lease signings of Q1 include:
- 40,000 sf LA Fitness at Seacliff Village Shopping Center, 19330 Goldenwest Street, Huntington Beach ― Former Orchard Supply Hardware site
- 37,247 sf Whole Foods Market at Village at La Floresta, 12128 Imperial Highway, Brea ― New development
- 30,100 sf Orchard Supply Hardware at 8060 Dale Street, Buena Park ― Former Albertson’s
- 22,596 sf at 17060 Magnolia Street, Fountain Valley ― Former Grocery Outlet
- 20,480 sf at 2129 W Lincoln Ave., Anaheim ― Former Anaheim Thrift Store
Q1 Retail Report – Los Angeles County
| LOS ANGELES | Q1 2015 | Q4 2014 | Q1 2014 | % Change v. Q1 2014 |
|---|---|---|---|---|
| Vacancy Rate | 4.7% | 4.7% | 5.1% | -7.84% |
| Net Absorption | 220,857 sf | 627,255 sf | 698,041 sf | -68.4% |
| Vacant Space | 695,450 sf | 779,214 sf | 916,459 sf | -24.1% |
| New Construction Delivered | 151,329 sf | 197,367 sf | 475,458 sf | -68.2% |
| Unemployment (LA) | 7.7% | 7.9% | 8.7% | -11.5% |
The largest lease signings in Q1 included:
- 25,183 sf Sprouts at 4903 Eagle Rock Blvd., Glendale ― Former Super A Foods
- 22,053 sf 99-Cent Only at 8451 Crenshaw Blvd., Inglewood ― Previously leased to church
- 16,161 sf Howard Electronics at 21721 Vanowen Street, Canoga Park ― Former Patioworld
- 15,000 sf Pacific Patio Furniture at Agoura Design Center, 28503-28505 Canwood Street, Agoura Hills
- 10,660 sf Dollar Tree at 2700 Broadway, Los Angeles ― Renovated former mini-mall/swap meet
Q1 Retail Report – Inland Empire
| INLAND EMPIRE | Q1 2015 | Q4 2014 | Q1 2014 | % Change v. Q1 2014 |
|---|---|---|---|---|
| Vacancy Rate | 8.3% | 8.3% | 8.5% | -2.35% |
| Net Absorption | -17,103 sf | 309,894 sf | 505,313 sf | -103.4% |
| Vacant Space | 581,506 sf | — | 635,372 sf | -8.48% |
| New Construction Delivered | 70,200 sf | — | 424,393 | -83.46% |
| Unemployment (Riv Cty) | 6.9% | 8.2% | 9.0% | -23.3% |
The largest lease signings of Q1 include:
- 25,030 sf Mor Furniture at Foothill Marketplace, 12689 Foothill Blvd., Rancho Cucamonga ― Former Furniture Liquidator
- 21,260 sf Aldi at The Springs, 5200 E. Ramon Road, Palm Springs ― Sub-divided space with Party City
- 20,034 sf Planet Fitness at Ramona Plaza Shopping Center, 1470 E. Florida Ave., Hemet ― Former Grocery Outlet
- 15,518 sf Party City at The Springs, 5200 E. Ramon Road, Palm Springs ― Sub-divided space with Aldi
- 13,925 sf Abbasi Auto at 333 S. Waterman Ave., San Bernardino ― Former Freeway Auto Center
Sources: California Employment Development Department; Co-Star; Coreland Companies