Los Angeles Retail Market Report

Hard-hit submarkets have reason for optimism. Los Angeles' retail recovery is making progress, with the second half of this year positioned to usher in further improvement. Entering July, both single- and multi-tenant vacancy was down moderately on a year-over-year basis, with average asking rents at record marks in both segments. Rising retailer demand in suburban markets and locales adjacent to Downtown Los Angeles is largely to credit for this performance. Moving forward, assistance is in place for submarkets whose recoveries trail these locales. More financial and tech firms are expected to bring staff back to the office, at least a few days per week if not full time, in the coming months. This change suggests a near-term rise in foot traffic is upcoming for Greater Downtown Los Angeles and West Los Angeles. Such an improvement has the potential to heighten retailer demand for available space in these areas.