May 11, 2015
Retail construction is back in the Greater Los Angeles area, according to CBRE. There was about 1.2 million square feet under construction during the first quarter. Additionally, vacancy fell to 5.2 percent year over year, a decrease of 50 basis points. CBRE also pointed out that the Downtown Los Angeles Whole Foods is expected to open by the end of the year.
Colliers International tallied a similar vacancy rate, at five percent and recorded an absorption rate of 372,600 square feet. However, it differed from CBRE by saying that the amount of construction under development is just over 1.9 million square feet. The firm also noted that asking rents dropped by one cent, to $2.45 per square foot, due to lower rates for power centers and single-tenant buildings.