Los Angeles Retail Market Report
Suburban Vacancies Hold Below Market;
Recovery Catalysts Surface in Job Hubs
Largest locales display positive momentum. The recent performance of Los Angeles County submarkets has emulated the broader national trend of suburban retail outperforming the CBD. Over the past year ended in March, the San Gabriel and San Fernando valleys each recorded vacancy compression, with both submarkets entering the second quarter with availability below the metrowide average of 5.8 percent. Tightening conditions and positive absorption here and in Burbank-Glendale-Pasadena are supporting above-average rent growth, with the latter suburban locale home to the lowest vacancy rate among metro submarkets with at least 20 million square feet of inventory. Moving forward, near-term supply additions will be minimal across the San Fernando Valley region, while deliveries in the San Gabriel Valley are mostly accounted for, a boon for existing suburban properties with available space.