Los Angeles Retail Market Report

Shopping center leasing a bright spot. Following three consecutive years of vacancy increase, Los Angeles’ retail sector enters 2026 with historically high availability. This, along with another round of store closures, including 10 Amazon Fresh locations, will create a challenging near-term stretch for certain property types. Still, there is reason to be optimistic. Across shopping centers, tenants absorbed 620,000 square feet of space during the second half of 2025, an indication that experiential retailers, supermarkets, and off-price stores are backfilling a share of big-box spaces vacated over the past two years. Single-tenant demand, meanwhile, returned to positive territory during the final three months of last year, following seven quarters of negative net absorption. Still, a combined 24 million square feet of multi- and single-tenant space sits vacant across the county. Fortunately, pressure from new supply will be nominal as inventory expands by just 0.1 percent, with deliveries scant in Greater Downtown Los Angeles and West Los Angeles — areas with elevated local vacancy.