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Market Report

Los Angeles Retail Investment Forecast

2022 Outlook

Resurgence of Longstanding Demand Drivers Lift Los Angeles' Retail Outlook and Boost Transaction Velocity

Major submarkets record positive leasing momentum. Despite entering the year with above-average retail vacancy and one of the nation's highest unemployment rates, Los Angeles County vendors and property owners have reasons for optimism. In 2021, retailers absorbed nearly 1.4 million square feet metrowide amid some of the most stringent COVID-19 mandates in the nation. Recent momentum was highlighted by positive annual absorption in the San Fernando Valley, South Bay and Greater Downtown Los Angeles, local regions that together account for half the market's inventory. Further improvements in consumer spending are anticipated in these locales, as well as tech-heavy West Los Angeles. Retail sales should rise here as employees return to offices, companies grow their staff and tourism rebounds. Necessity and experiential retailers motivated to expand will comb through the county's existing stock during a period of minimal inventory expansion, supporting a second straight year of moderate vacancy compression.

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