Los Angeles Retail Market Report

Outlook brightens for shops reliant on local tourism. Entering April, Los Angeles County's vacancy rate had hovered for 15 straight quarters in the historically elevated range of 5.5 to 5.9 percent. Still, a tailwind has emerged that has the potential to aid local consumer spending and demand for available retail space. Last year, Los Angeles welcomed an estimated 49.1 million visitors, a tally nearly on par with the 2019 level. In 2024, the bona fide return of international travelers is expected to raise this annual total. Data from January through May backs this expectation, as during the period international passenger traffic at Los Angeles International Airport was up 15 percent year over year. Retailers in Greater Downtown Los Angeles, West Los Angeles and Burbank-Glendale-Pasadena will most likely benefit. Those seeking local expansion will find minimal newly built space to lease, aiding property owners with vacancies.