The Number

Despite headlines of store closures and growing online sales, the retail sector in the San Fernando Valley appears quite healthy, according to a new report from brokerage CBRE Group. The report, titled “Retail Reigns King,” found that Valley retail vacancy measured 4.8 percent, compared to 5.2 percent in L.A. County overall. “The greater Los Angeles market concluded 2017 with stable and optimistic fundamentals, further demonstrating a demand for quality retail opportunities,” the report said. Among the L.A. submarkets, downtown ranked highest in vacancy at 11.1 percent, followed by Antelope Valley with 8.3 percent. Neither market had major move-outs but rather numerous smaller spaces that became vacant. “Vacancy (throughout greater Los Angeles) remained unchanged at 5.2 percent, and leasing momentum remained positive ending Q4 2017 with 231,104 square feet of positive net absorption,” the report said. “Average asking lease rates further increased to $2.71 per square foot with even higher average regional starting and effective rents.” Breakdowns for other Valley-region submarkets show wide variation. Ventura County evinced 7.2 percent while Santa Clarita had 5.9 percent vacancy. Ventura was the only submarket with a notable amount of occupancy losses totaling 111,417 square feet due to a number of mid-sized vacancies primarily in Simi Valley, Camarillo and Oxnard, the report stated. The worst retail neighborhoods in L.A. County were Southeast Los Angeles and West Los Angeles. The Tri-Cities, which includes Burbank and Glendale, had the lowest retail vacancy at 2.3 percent. The main retailers in that leased big and junior box spaces were fitness gyms, supermarkets, and discount stores, the report said. “Greater Los Angeles remains a hot and desirable market for investors, retailers, and developers,” the report concluded. – Michael Aushenker