Los Angeles Retail Market Report

Singular narrative does not apply to all submarkets. Los Angeles County’s retail sector entered the second half of 2025 with record-high vacancy of 6.6 percent. Historically elevated rates are evident across many submarkets, as a recent pullback in new lease commitments and a wave of store closures broadly impact local fundamentals. Still, demand is holding up in select reaches of the metro. Mid-Wilshire recorded a 20-basis-point drop in vacancy in the first half, with Santa Clarita Valley and Antelope Valley entering July with rates at or below their long-term averages. In contrast, vacancy in Downtown Los Angeles — 11.1 percent — is nearly 500 basis points above its prior 10-year average. Here, and in West Los Angeles, demand for retail space should continue to be challenged, as local office vacancy rates above 20 percent limit midweek foot traffic.