Los Angeles Retail Figures Q3 2022
November 11, 2022
‒Freestanding sites continued to drive capital markets activity, closely followed by storefront locations. Sites with higher parking ratios and excess land were targeted. Including auto-dealerships, supermarkets, health clubs and fast-food restaurants.
‒Arcadia experienced the largest shopping mall sold in the United States since 2018: Westfield Santa Anita.
‒Although port activity has de-congested relative to H1 2022, retail development remains constrained and has grown increasingly more complex with the rise in interest rates and construction costs.
‒Ongoing: Los Angeles's housing ordinances have accelerated multi-family investment and development. Multiple sites with existing retail properties throughout Greater Los Angeles were sold for land value with the intention of erecting alternative assets, particularly multi-family complexes and mixed-use properties.
‒Ongoing: Capital Markets were driven by private investment firms, institutional capital, developers and high net worth investors. Multiple transactions traded for land value with the intention to hold for redevelopment.
‒Rents increased overall, albeit selectively across submarkets in Q3. However, Rents remain below pre-pandemic levels.