Market Reports

The retail landscape in Los Angeles is facing a combination of structural and cyclical challenges. Despite experiencing slow growth over the past two decades, the city’s population began declining in 2018, resulting in an overall decrease in the demand for local retail services. The rise of hybrid work arrangements due to the pandemic has particularly impacted the demand for restaurants and services around major office hubs, stretching from Downtown L.A. to Santa Monica. Despite an overall negative trend in demand, there is a notable shift in post-pandemic shopping behavior, with a preference for neighborhood centers.

These centers, which attract a variety of tenants including grocers, are experiencing a reduction in availabilities. Consumer preferences are shifting towards convenient centers that provide easy access and various shopping methods. Notably, fitness companies such as Planet Fitness and Gold’s Gym, along with boutique gyms, are actively securing space in neighborhood centers this year. This emerging trend is significantly increasing the demand for retail in suburban submarkets like Santa Clarita, Antelope Valley, and parts of the San Fernando Valley, where neighborhood centers play a significant role in the retail inventory.

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