Los Angeles Retail Market Report

Hurdles remain, but reasons for optimism exist in downtown. Los Angeles County entered July with its highest retail vacancy rate on record. Yet, when filtering out Greater Downtown Los Angeles — which includes downtown and Mid-Wilshire — the situation is not as grim. Across the rest of the metro, collective vacancy was 5.7 percent in June — up just 20 basis points year over year. In contrast, vacancy rose 110 basis points to 7.8 percent in Greater Downtown Los Angeles during the same stretch. Recent positive office absorption in the CBD as well as the return of international visitors in 2024, however, may support greater retail performance in the urban core if these trends carry over into 2025. Should demand for space rise, properties with availability will benefit, as the local pipeline is scant.