RETAIL ROUNDUP: First Quarter 2015 Retail Market Highlights

News

Q1-Retail-RoundupThe 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