Los Angeles Retail Market Report
Recent Positives Emerge Amid Los Angeles’ Longer-Term Recovery Cycle
Absorption yet to recover as dearth of larger leases persists. Hindered by double-digit unemployment, Los Angeles County’s retail sector appears to have a longer road to recovery than that of other neighboring markets. Entering the second half, metro vacancy was at its highest point since at least 2007, with the county’s vacant stock having increased in every quarter since the onset of the health crisis. This performance runs in contrast to the trio of other major Southern California metros as each recorded positive retail absorption in the second quarter of 2021. Of concern for Los Angeles, 50,000-square-foot-plus lease executions have been absent from the marketplace since last July with expansions by supermarkets and gyms accounting for most of the 20,000-square-foot-plus commitments.