Stable market conditions remained across the Greater Los Angeles region at the close of 2017. Vacancy improved slightly with the Inland Empire improving from a rate of 7.5% to 6.9%. More than 1 million square feet of new construction was delivered, and all counties recorded positive absorption: Los Angeles (1,602,540 sf), Inland Empire (1,425,609 sf) and Orange County (199,187 sf). Overall, 2017 came to an end with favorable market fundamentals and a positive outlook for 2018 thanks to a holiday season which saw an increase in consumer spending according to ICSC.
Q4 Retail Report – Los Angeles County
| LOS ANGELES | Q4 2017 | Q3 2017 | Q4 2016 | % Change v. Q4 2016 |
|---|---|---|---|---|
| Vacancy Rate | 3.7% | 4.0% | 4.0% | -7.5% |
| Net Absorption | 1,602,504 sf | 829,624 sf | 493,902 sf | 224.5% |
| Vacant Space | 848,486 sf | 856,929 sf | 1,291,619 sf | -34.3% |
| New Construction Delivered | 618,709 sf | 448,918 sf | 189,191 sf | 227.0% |
| Unemployment (LA) | 4.2% | 5.4% | 4.8% | -12.5% |
Largest LA lease signings in Q4 included:
- 79,996 sf at 7279 Rosemead Blvd., San Gabriel – Former Kohl’s
- 57,617 sf Bob’s Discount Furniture at Fallbrook Center, 6651 N. Fallbrook Ave., West Hills – Former Kohl’s
- 33,448 sf Bob’s Discount Furniture at Midtown Crossing, 4550 W. Pico Avenue, Los Angeles – Former Sports Authority
- 32,229 sf at 21212 Avalon Blvd., Carson – One building of former auto dealership
Q4 Retail Report – Orange County
| ORANGE COUNTY | Q4 2017 | Q3 2017 | Q4 2016 | % Change v. Q4 2016 |
|---|---|---|---|---|
| Vacancy Rate | 4.0% | 4.1% | 3.9% | 2.6% |
| Net Absorption | 199,187 sf | -6,629 sf | -158,879 sf | -225.4% |
| Vacant Space | 326,051 sf | 316,867 sf | 311,273 sf | 4.7% |
| New Construction Delivered | 57,890 sf | 77,709 sf | 72,768 sf | -20.4% |
| Unemployment (LA) | 2.8% | 4.2% | 3.7% | -24.3% |
Largest OC lease signings of Q4 include:
- 88,688 sf Furniture City at Bristol Marketplace at 1351 N. 17th Street, Santa Ana – Former Kohl’s
- 44,800 sf Chuze Fitness at Walmart Shopping Center at 117 N. Beach Blvd., Anaheim – Former Walmart, downsized for Neighborhood Market
- 32,000 sf Tokyo Central Market at 18171 Imperial Highway, Yorba Linda – Redeveloped former Yorba Linda Bowl site that never opened as The Fresh Market
- 18,705 sf Planet Fitness at Home Ranch Center, 18601-18659 Yorba Linda Blvd., Yorba Linda
- 16,310 sf Blink Fitness at Brookhurst Center, 901-939 S. Brookhurst St., Anaheim
- 15,400 sf Grocery Outlet at Vons Shopping Center, 22475 El Toro Road, Lake Forest – Former Fresh & Easy
Q4 Retail Report – Inland Empire
| INLAND EMPIRE | Q4 2017 | Q3 2017 | Q4 2016 | % Change v. Q4 2016 |
|---|---|---|---|---|
| Vacancy Rate | 6.9% | 7.5% | 7.5% | -8.0% |
| Net Absorption | 1,425,609 sf | 235,661 sf | 921,022 sf | 54.8% |
| Vacant Space | 426,759 sf | 475,947 sf | 667,038 sf | -36.0% |
| New Construction Delivered | 423,059 sf | 288,770 sf | 179,893 sf | 135.2% |
| Unemployment (Riv Cty) | 4.3% | 6.5% | 5.7% | -24.6% |
Largest IE lease signings of Q4 include:
- 34,849 sf Aerosports at McKinley Crossroads, 275 Teller Street, Corona – Long-time vacancy
- 25,590 sf at Renaissance Marketplace, 210 Fwy. & Ayala Dr., Rialto – New ground-up development
- 18,555 sf Grocery Outlet at Renaissance Marketplace, 210 Fwy. & Ayala Dr., Rialto – New ground-up development
- 18,209 sf Planet Fitness at Winchester Meadows, 40335 Winchester Road, Temecula – Former subdivided Ralphs
Sources: California Employment Development Department; Co-Star; Coreland Companies