Los Angeles Retail Vacancy Decreases to 4.8%
The Los Angeles retail market experienced a slight improvement in market conditions in the third quarter 2014.
The vacancy rate went from 5.0% in the previous quarter to 4.8% in the current quarter. Net absorption was positive 706,774 square feet, and vacant sublease space increased only slightly by 1,970 square feet. In second quarter 2014, net absorption was positive 389,145 square feet.
Tenants moving into large blocks of space in 2014 include: Target moving into 137,920 square feet at 30740 Russell Ranch Rd; Goodwill moving into 102,249 square feet at 3150 San Fernando Rd; and Food 4 Less moving into 78,962 square feet at 11507 S. Western Ave.
Quoted rental rates increased from second quarter 2014 levels, ending at $24.58 per square foot per year.
A total of 23 retail buildings with 338,209 square feet of retail space were delivered to the market in the quarter, with 1,823,820 square feet still under construction at the end of the quarter.
This trend is compared to the U.S. National Retail vacancy rate, which decreased to 6.3% from the previous quarter, with net absorption positive 26.48 million square feet in the third quarter. Average rental rates increased to $14.84, and 542 retail buildings delivered to the market totaling more than 13.9 million square feet.