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Market Report: Santa Monica

SANTA MONICA

Downtown Santa Monica, Mid-City Santa Monica, North of Montana, Ocean Park, Pico, Sunset Park, and Wilshire Montana

Rent Rate

Leasing Activity SF

Vacant Available SF

SOURCE: CoStar 

  • Q1 2021
  • Q1 2022
  • Q1 2023

Leasing Market Overview

MEASURING Q1 2023

For the past six years, Santa Monica has seen negative annual net absorption, with vacancy rates steadily increasing since 2016. This is a stark contrast to the city’s retail sector in the past, which was among the tightest in the metropolitan area. The current 12.3% availability rate suggests that further move-outs could lead to higher vacancy rates in the near future.

While the retail sector in Santa Monica faces challenges, strip centers have seen a marked improvement in the past two years, with vacancy rates dropping from 18.8% to 6.8%. As Santa Monica’s retail market is mature, strip centers often attract tenants who occupy smaller spaces in power centers. However, as there are no power centers in Santa Monica, strip centers have become a viable option for retailers looking to establish a presence in the city.

SNAPSHOT OF LEASES SIGNED

No. Signed Date Start Date Address SF Leased Rent/SF/Mo Months on Market Leasing Rep Company
1 Jan-23 Feb-23 2665   Main St 1,100 5.75 34 Muselli Commercial Realtors
2 Jan-23 Feb-23 1229-1235 Montana Ave 800 8 17 Dembo Realty
3 Jan-23 Feb-23 729 Montana Ave 2,855 0.83 11 JLL
4 Feb-23 Mar-23 1415 5th St. 1,000 0.22 3 NMS Properties
5 Feb-23 Mar-23 1003 Broadway 992 5.75 1 PAR Commercial Brokerage, Inc.
6 Feb-23 Mar-23 2400 Main St 550 6.25 1 Perloff-Webster Company
7 Feb-23 Mar-23 2451 Broadway 3,950 4.75 15 Zacuto Group
8 Mar-23 Apr-23 920-934 Broadway 1,630 3.75 7 Fortuna Asset Management
9 Mar-23 Apr-23 1703 Ocean Park Blvd 1,376 4.65 17 Lee & Associates - West LA
10 Mar-23 Apr-23 2714-2718 Main St 1,980 5.25 22 PAR Commercial Brokerage, Inc.

SOURCE: CoStar 

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Successful Tenants

Meet Phil, owner of Freda’s Pizza & Woodfired Kitchen in Westlake Village, CA. His passion for the craft led him and his partner to create Freda’s Pizza & Woodfired Kitchen, a concept that combines traditional techniques and ingredients with a modern twist.

With a prime location secured, Freda’s Pizza & Woodfired Kitchen was able to hit the ground running and quickly establish itself as a popular destination for pizza lovers.

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