Market Reports

Los Angeles County’s retail leasing market continues to face challenges, with demand for space lagging behind other U.S. cities. Stubbornly high housing costs and softer economic growth have made local consumers more cautious, while elevated interest rates have increased costs for businesses and slowed down new store openings.

Population decline is a major factor. While there was a small uptick in the latest census, LA has lost over 3% of its population about 340,000 people in the past five years, shrinking the pool of potential customers and making retailers more hesitant to expand. Sun Belt cities are seeing much higher growth in comparison.

Suburban retail properties are holding up better than urban spaces, especially in areas like Glendale and Torrance, where availability is low. Urban cores from Downtown LA to Santa Monica are dealing with slower demand, fewer international tourists, and ongoing concerns about crime and homelessness.

Retailers are competing for high-quality space, but it’s in short supply: only 10% of available space is in Class A properties, and just 4% is in newly built locations. Most space coming to market in 2025 is older and lower quality the average property is nearly 60 years old, and three-quarters of available space is in buildings built before the 1990s. These properties have also seen a recent increase in vacancy.

More vacant retail space is turning up in less affluent neighborhoods. Nearly 70% of available space is within three miles of areas with below-median household income for the region.

Looking ahead, don’t expect a quick turnaround. Vacancy will likely creep up as more closures play out, and the economic and demographic pressures behind the recent slowdown are expected to stick around for now.

Below are breakdowns of submarkets found in the Greater Los Angeles area.