Market Report: San Fernando Valley

The San Fernando Valley is a primarily suburban retail market where local-serving retailers are supported by a mix of residential neighborhoods and major transportation corridors. The area is home to several large shopping centers that cater to a broad demographic, from discount chains to upscale retailers, and benefits from easy access via key freeways.

Retail availability in the first quarter sat at 4.5%, lower than the 10-year average of 5.3%, and contrasting with the broader Los Angeles trend of rising availability. By the end of 2024, the overall availability rate had dropped to its lowest point since 2017. Single-tenant properties saw availability hover just above 2%, while multi-tenant centers ended the year closer to 5–6%, a level not seen in more than a decade.

Like much of Greater Los Angeles, new retail construction has been limited. Over the past five years, net deliveries totaled -90,000 SF, indicating more demolitions than new builds. Many obsolete retail sites have been repurposed, often for mixed-use or residential development, due to the inability of retail rents to justify new construction. Currently, just 12,000 SF is under construction.

Rent growth has remained modest in the past year—up 1.0% to 1.9%—but the submarket has significantly outperformed the broader metro over the longer term, with cumulative rent growth of 15–16.6% over the past five years compared to 9.5% for Los Angeles. However, rent growth is expected to soften below historical averages through 2025 before stabilizing.

Overall, the San Fernando Valley retail market remains relatively stable, with steady fundamentals and limited speculative development.