September 22, 2016
CBRE says the Los Angeles retail market is indeed hot. In fact, the Greater L.A. retail market is one of most active investment markets in the country, with both national and foreign investors eyeing opportunities.
L.A. is listed among top five “buy” markets for retail investment in the nation. Average asking lease rates are strong, yet effective lease rates are even higher. The market is seeing bidding wars, with actual rents soaring for premier properties.
Other key L.A. retail market highlights include:
- Retail rents are expected to climb more than 15% by 2019, while vacancy rates will shrink to 5.8% by 2018
- Highest demand is for new developments and updated historical buildings
- Rental rates in L.A. and across the Southern California region far exceed the national average
- Retail fundamentals improved steadily and lease rates have gradually rebounded
For comments, questions or concerns, please contact Dennis Kaiser