Market Report: Santa Clarita

The leasing landscape in the Santa Clarita Valley retail submarket shows promising signs as vacancy rates have decreased to 4.3% compared to the previous year, indicating a tightening market. Notably, there has been a positive absorption of 130,000 SF, reflecting a healthy demand for retail spaces in the area. With rents currently hovering around $33.00/SF, a modest 1.5% increase over the past 12 months, tenants may find opportunities for favorable lease terms amid this evolving market.

Across various retail asset classes, vacancy rates vary, with power centers experiencing the highest vacancy at 8.5%, while malls report no vacancies. Interestingly, strip centers and neighborhood centers demonstrate resilience with lower vacancy rates of 6.0% and 1.6% respectively. Despite fluctuations in rental rates across different retail building types, the overall trend suggests a steady growth in rents over the past three years, outperforming the Los Angeles market average. This robust leasing activity, coupled with a consistent decline in vacancy rates, indicates a dynamic retail environment in Santa Clarita, offering both landlords and tenants ample opportunities for growth and stability in the foreseeable future.