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Market Report

Los Angeles Retail Market Report

2024 Investment Forecast

Broader Conditions in the Nation’s Second-Largest
Market Distract from Pockets of Localized Strength

Suburbs outperform overall metrics. While Los Angeles entered 2024 with the fifth-highest vacancy among major U.S. markets, room for optimism exists. The number of lease executions for sub-5,000-square-foot spaces rose moderately last year when compared to 2022, with the count of 10,000- to 20,000-square-foot commitments relatively consistent. Retailer demand for these floor plans is being fueled by consumers’ prioritization of necessities and experiences, trends that will continue this year. Vendors seeking suburban expansion will discover tighter conditions than in Greater Downtown Los Angeles and West Los Angeles, where declining office use has impacted local retail sales. Outside these two areas, vacancy sits in the mid-5 percent range. This tightness should allow vacated big-box spaces to be backfilled here, which, when combined with a well-leased pipeline, should translate to minimal vacancy adjustment.
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