Orange County Retail Figures Q1 2026

– The Orange County retail market recorded an availability rate of 3.9%, remaining flat quarter-over-quarter, as strong tenant demand, limited development activity, and the demolition of obsolete malls and big-box properties continued to constrain available inventory.

– Net absorption slowed to 21,000 sq. ft. in Q1 2026, down from 166,000 sq. ft. in the prior quarter, reflecting a 15% decline in leasing volume, as retailers faced increasingly tight market conditions with limited space available to accommodate demand.

– Only 5,000 sq. ft. of construction delivered in Q1 2026, down from 41,000 sq. ft. last quarter, reflecting ongoing challenges from site availability and elevated development costs.

– The overall average net asking rent increased by $0.02 quarter-over-quarter to $2.56 NNN per. sq. ft. per month in Q1 2026. The increase was driven by leasing activity concentrated in the Central Coast submarket, highlighting continued competition for high-quality, well-located retail space.

– Total retail investment sales surged more than 75% to $436.1 million in Q1 2026, up from $103.0 million in Q4 2025. The increase was fueled by several large shopping center transactions exceeding $40 million, including Pavilion Plaza, Seacliff Village, and Gateway Shopping Center, along with the $107 million sale of Westminster Mall, which is slated for redevelopment.