Los Angeles Retail Market Report

Annual net absorption total reaches seven-year high. Los Angeles entered 2023 with a vacancy rate above its long-term average; however, the metro’s retail recovery is making strides. Both single- and multi-tenant availability is trending downward, following positive absorption across most submarkets during the second half of last year. A similar level of retailer demand is expected during 2023, a dynamic that will coincide with historically low delivery volume. This combination will steer expanding vendors to existing stock, aiding properties with available space. Further assistance appears lined up for the sector as major employers are walking back their flexible work models, often requiring staff to be in-office at least three days a week. The near-term rise in foot traffic that may result in Greater Downtown Los Angeles and West Los Angeles would be a welcomed occurrence for existing retailers that rely on midweek patronage. Larger work crowds may also stoke vendor demand for space in the two locales, which are home to the highest availability among major submarkets — accounting for 30 percent of the metro’s vacant stock.