Scroll Down

Market Report

Orange County Retail Market Report

Second Quarter 2019

Robust Retailer Leasing Keeps Vacancy Low; Escalating Price Appreciation Could Slow Deal Flow

High-net-worth residents mixed with iconic tourism maintain this retail market. Orange County is one of the more affluent metros on the West Coast, and its beaches, luxury shopping, and diverse economy attract high-income residents. Household formation will remain positive with nearly 9,000 new residences projected for this year. The metro is also a tourism hub due in large part to the presence of Disneyland and the luxury shopping venues along the coast. With a high-income demand pool and a strong tourism industry, the area’s stable retail sales are attractive to a variety of retailers looking to capitalize on the market’s consumer spending. Yet with limited available space and new supply, leasing options are sparse. The year’s construction will provide some relief with a slight increase of inventory. The largest project is the 220,000-square-foot Tustin Legacy, which will provide grocery, restaurant, service retail, and boutique fitness studio options.

Related Research

Back to top