Market Reports

The Los Angeles County retail market showed signs of stabilization in Q4 2025, though momentum softened slightly compared to the prior quarter. Overall vacancy edged up to approximately 21.6%, from 20.3% in Q3, reflecting slower leasing velocity and an uptick in available space. Net absorption remained negative, but improved quarter-over-quarter, indicating that while move-outs continue to outpace move-ins, the pace of contraction is moderating. Total leasing activity also declined from Q3 levels, signaling a more selective and cautious tenant base as operators focused on optimizing existing locations rather than pursuing aggressive expansion.

Rental rates remained largely stable during the quarter, with average asking rents holding near $2.84 per square foot, essentially flat from Q3. This pricing resilience reflects landlords’ continued emphasis on maintaining rate integrity in high-quality centers and core trade areas, even as concessions and flexible deal structures remain common in secondary corridors and urban cores. Availability increased modestly to roughly 26.3%, underscoring ongoing supply-side pressure, particularly in higher-density submarkets where recovery has lagged suburban performance.

Overall, Q4 2025 reflects a market transitioning into a period of cautious balance. While vacancy and availability remain elevated, the improvement in absorption trends and steady rent levels point to a market that is gradually finding equilibrium. Service-oriented retailers, value-driven concepts, and established regional operators continue to anchor demand, especially in neighborhood and suburban centers. Looking ahead to 2026, Los Angeles County’s retail sector appears positioned for gradual, uneven improvement, with performance driven by localized fundamentals, disciplined underwriting, and sustained focus on occupancy and tenant quality over aggressive rent growth.

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