Although overall demand in the retail sector has been negative, there have been shifts in post-pandemic shopping behavior that have proven advantageous for neighborhood centers. These centers have seen a decrease in available space because they’ve benefited from strong demand from a variety of tenants, including grocery stores. Consumers are showing a clear preference for convenient centers with easy access and various shopping options. Fitness companies like Planet Fitness and Gold’s Gym, as well as boutique gyms, have been actively renting space in neighborhood centers this year. The limited availability and increasing demand for space have led to more robust rent growth in neighborhood centers compared to the broader retail market. This trend is also noticeable in suburban submarkets like Mid-Cities, Antelope Valley, and the San Gabriel Valley, where neighborhood centers represent a significant portion of the retail inventory.
Below are breakdowns of submarkets found in the Greater Los Angeles area.