Owner-User demand sustains retail pricing amid rising vacancy in Los Angeles

Owner-User demand sustains retail pricing amid rising vacancy in Los Angeles

Owner-User demand sustains retail pricing amid rising vacancy in Los Angeles
Owner-User demand sustains retail pricing amid rising vacancy in Los Angeles
  • While the Los Angeles capital markets environment remains challenging—particularly for office assets—retail properties in Los Angeles continue to trade at historically elevated price points. The average price per square foot remains highly competitive at $406, even as overall sales volume has slowed across the market.
  • Retail vacancy in Q2 2025 sits at 5.6%, marking a modest 100-basis-point increase from Q1 2023. A key driver behind price stability is the strong presence of owner-users, who now occupy nearly 25% of stand-alone retail segments. These assets continue to attract established brick-and-mortar tenants seeking long-term operational control and cost certainty.
  • As retail remains a bright spot in an otherwise cautious investment landscape, institutional investors, including traditional office-focused REITs and private equity firms, may increasingly shift their attention toward retail acquisitions in Los Angeles.

 

Los Angeles
Sebastian Bernt

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