Transaction activity heated up at the start of the year. Vacancy rates remained consistent across Los Angeles County and the Inland Empire, and increased slightly in Orange County. The buzz of leasing activity surrounded new leases announced at ground-up developments such as Shoppes at The Lake in Menifee and Renaissance Marketplace in Rialto, as well as properties in the midst of repositioning like Anaheim’s GardenWalk and Janss Marketplace in Thousand Oaks. Gyms, grocers and discounters remain the most active mid-size boxes.
Q1 Retail Report – Los Angeles County
| LOS ANGELES | Q1 2017 | Q4 2016 | Q1 2016 | % Change v. Q1 2016 |
|---|---|---|---|---|
| Vacancy Rate | 4.0% | 4.0% | 4.5% | -11.1% |
| Net Absorption | 351,365 sf | 493,902 sf | 683,466 sf | -48.6% |
| Vacant Space | 1,271,741 sf | 1,291,619 sf | 1,484,370 sf | -14.3% |
| New Construction Delivered | 957,899 sf | 189,191 sf | 178,052 sf | 438.0% |
| Unemployment (LA) | 4.8% | 4.8% | 5.5% | -12.7% |
Largest LA lease signings in Q1 included:
- 48,000 sf Roundtree Automotive Group at 1800 E. Spring Street, Long Beach – Former Hooman Nissan dealership
- 44,671 sf 24Hr Fitness at Del Amo Crossing, 21515 Hawthorne Blvd., Torrance – New building as part of renovation Del Amo Financial Center
- 42,292 sf 24Hr Fitness at Walnut Hills Plaza, 18718-18766 Amar Road, Walnut – Former Albertson’s
- 39,590 sf Sprouts Farmers Market at Lincoln Station Shopping Center, 11900 South Street, Cerritos – FormerSports Authority
- 37,773 sf ULTA Beauty at Janss Marketplace, 275 N. Moorpark Road, Thousand – Former Rite Aid
- 37,000 sf Dojo Boom Trampoline Park at Janss Marketplace, 275 N. Moorpark Road, Thousand – Former Padavo Home Furnishings
Q1 Retail Report – Orange County
| ORANGE COUNTY | Q1 2017 | Q4 2016 | Q1 2016 | % Change v. Q1 2016 |
|---|---|---|---|---|
| Vacancy Rate | 4.2% | 3.9% | 4.4% | -4.5% |
| Net Absorption | -132,284 sf | -158,879 sf | 26,530 sf | -598.6% |
| Vacant Space | 384,544 sf | 311,273 sf | 247,619 sf | 55.3% |
| New Construction Delivered | 403,609 sf | 72,768 sf | 570,537 sf | -29.3% |
| Unemployment (OC) | 3.7% | 3.7% | 4.0% | -7.5% |
Largest OC lease signings of Q1 include:
- 21,648 sf at Anaheim Garden Walk, 400 West Disney Way, Anaheim
- 17,671 sf at Anaheim Garden Walk, 400 West Disney Way, Anaheim
- 13,373 sf Grasslands Meat Market at Anaheim Garden Walk, 400 West Disney Way, Anaheim
- 11,334 sf Renaissance Home Furnishings at Plaza del Obispo, 318962 Del Obispo Street, San Juan Capistrano – Former Veterinary Medical Clinic
Q1 Retail Report – Inland Empire
| INLAND EMPIRE | Q1 2017 | Q4 2016 | Q1 2016 | % Change v. Q1 2016 |
|---|---|---|---|---|
| Vacancy Rate | 7.5% | 7.5% | 8.4% | -10.7% |
| Net Absorption | -80,548 sf | 921,022 sf | 50,881 sf | -258.3% |
| Vacant Space | 664,956 sf | 667,038 sf | 654,088 sf | 1.7% |
| New Construction Delivered | 84,937 sf | 179,893 sf | 247,010 sf | 65.6% |
| Unemployment (Riv Cty) | 5.5% | 5.7% | 5.9% | -6.8% |
Largest IE lease signings of Q1 include:
- 45,000 sf Stater Bros. at Shoppes at The Lakes, 29061 Newport Road, Menifee – New ground-up development
- 43,000 sf Burlington at Renaissance Marketplace, 210 Fwy. & Ayala Dr., Rialto – New ground-up development
- 38,690 sf 24Hr Fitness at Renaissance Marketplace, 210 Fwy. & Ayala Dr., Rialto – New ground-up development
- 30,000 sf Smart & Final extra! at Newport Towne Square, Newport Road & Haun Road, Menifee – Phase 2 of ground-up development
- 22,408 sf Total Wine & More at The Commons at Temecula, 40408 Winchester Road, Temecula – Former Sports Chalet
Sources: California Employment Development Department; Co-Star; Coreland Companies