Market Report: Santa Monica

Vacancy has increased materially over the past two years, with a sharp rise through 2025 and a further jump in Q1 2026, indicating continued expansion of available space. Leasing activity has been highly inconsistent, with one significant spike in 2025 but otherwise relatively low and uneven absorption levels. The most recent quarter shows limited leasing volume, suggesting subdued tenant demand. Deal counts remain low, reinforcing the lack of sustained transactional activity. Rent levels have declined steadily from 2023 highs and appear to be stabilizing in the mid $4.00 range, reflecting a pricing reset. Overall, Santa Monica retail is characterized by rising vacancy, inconsistent leasing performance, and downward pressure on rents.