Los Angeles Retail Market Report
Mix of Positive Advancements and Looming Uncertainty Blur Retail Outlook
Reasons for optimism surface. Driven by some of the strictest shutdowns in the nation, Los Angeles registered a decline in retail sales and a wave of store closures that expanded the market’s vacant stock by nearly 3 million square feet last year. Since, these restrictions have been partially rolled back, with the county positioned to move into a less-stringent tier this spring that would increase capacity allowances and resume indoor operations across most businesses. Other positives are emerging for the local retail sector. Companies that excelled during the health crisis have shifted into an expansionary phase and distressed properties are being purchased for redevelopment, removing this vacant inventory from the market. Additionally, most of the retail space slated for 2021 delivery has leases in place.