Market Report: Burbank

The leasing landscape in Burbank’s retail submarket reveals a promising trajectory despite a current vacancy rate of 6.8%, showing a slight improvement of 0.5% compared to last year. With 40,000 SF of positive absorption, the market is witnessing stable demand, albeit with flat net deliveries. Rent rates, averaging at $41.00/SF, have experienced a marginal decline of 0.2% over the past year. Interestingly, while general retail buildings showcase a vacancy rate of 4.1% with a negative absorption of 20,000 SF, malls stand out with a relatively high vacancy rate of 27.4%, yet experience a positive absorption of 58,000 SF.

Diving deeper into rental dynamics, the variance in rates across different retail assets underscores unique market niches. General retail buildings command rents averaging $39.00/SF, while malls lead with $45.00/SF, followed closely by neighborhood centers at $47.00/SF. Notably, strip centers exhibit a vacancy rate of 1.2%, but with a slight negative absorption of 860 SF. Despite Burbank’s current vacancy surpassing its three-year average of 6.3%, rent growth has remained resilient over the past three years, increasing by 6.2%. This contrasts with the wider Los Angeles market, where rents grew by 6.9%, suggesting Burbank’s retail leasing sector may offer distinct investment opportunities within its 8.7 million SF inventory.