Orange County Retail Market Report

Select areas uphold metro strength. Increasing demand in West Orange County, Irvine and Newport Beach are offsetting rising vacancy in and around Santa Ana, as well as in the south part of the county. Beginning 2025 with especially low vacancy of 1.9 percent, Irvine will likely benefit from foot traffic generated by improving office occupancy, as well as an increasing number of local housing options. Multifamily inventory in Irvine has risen 8 percent since 2019, with more than 3,000 units still in the pipeline. While metrowide store closures have weighed on net absorption over the past two years, gross absorption has held relatively steady. Looking ahead, more move-ins are slated for this year, while redevelopments like with Santa Ana’s Metro Town Square will remove vacant stock from the market. This demand growth, along with potential removals and restrained construction, will allow Orange County to retain its status as California’s least vacant major retail market.