Orange County Retail Market Report

Recent vacancy compression stands out. Orange County was one of just four major U.S. retail markets to post a year-over-year vacancy decline in June. Still, negative net absorption was logged in four of the past six quarters — a trend likely to persist through year-end. At Home will close stores in Costa Mesa, Lake Forest and Tustin in the third quarter. Each location spans roughly 100,000 square feet, and the closures will test local vacancy while pushing the metro’s overall metric to its highest level in a decade outside of the pandemic. Slowing population and job growth could further temper retailer demand, though the metro’s highest median household income in Southern California helps keep vacancy here the lowest in the state.