Los Angeles Retail MarketView Insert Q1 2021

FROM RED TO ORANGE

• The successful rollout of the COVID-19 vaccine and Los Angeles County’s movement from the “Substantial Risk” Red Tier to the “Moderate Risk” Orange Tier signals a major waypoint in the region’s economic recovery. Retailers have been given the green light to resume previously prohibited indoor operations at various reduced capacity levels ranging from 25%-75%. Starting on June 15, most regulations will be scaled back to near pre-pandemic conditions if COVID-19 levels remain low.

COMPETITIVE CONSOLIDATION

• Restrictive pandemic conditions have placed disproportionate financial stress on small business “mom and pop” operators. These occupants of neighborhood and strip centers have struggled to compete with, and in some cases have been forced to forfeit space to, their larger corporate counterparts particularly in the health care and drug store sectors.