Market Report: San Fernando Valley

The San Fernando Valley’s retail market remains solid, with average rents holding at $2.91 per square foot. However, the vacancy rate has crept up to 17.9%, with total available space reaching 2.39 million square feet. This increase in availability may point to a softening in tenant demand, though leasing activity has remained stable, particularly among smaller, independent retailers looking to capitalize on competitive rates. Recent leasing activity totals reflect a strong preference for shorter-term leases. For investors, the market shows resilience in smaller retail centers, but they should be mindful of rising vacancy rates. Tenants may find favorable terms, especially for larger or less-central retail spaces.