Los Angeles Retail Market Report

Higher overall vacancy level belies local dynamics. Los Angeles retailers are continuing to find opportunities in areas of residential growth. Multifamily vacancy dropped by 50 basis points or more last year in the Santa Clarita Valley, Southeast Los Angeles and the South San Gabriel Valley, allowing these submarkets to retain some of the lowest retail vacancy rates in the county in 2024. That momentum is set to continue this year amid numerous upcoming move-ins, including from tenants like Dollar Tree and Planet Fitness. Vacancy, meanwhile, remains elevated in Downtown Los Angeles. The local rate jumped 220 basis points last year to 9.1 percent. That pressure may begin to ease in the near future, however, as more than 2,000 new rental households entered the submarket last year. The loss of retail properties along stretches of Sunset Boulevard, Fair Oaks Avenue and Lake Avenue from the January wildfires will also increase tenant competition for suitable floorplans in nearby neighborhoods.