Market Reports

What Comes After Live-Work-Play? South Coast Metro Has Some Observations

by John Nelson August 14, 2026

— By Diane Pritchett of South Coast Metro Alliance — How do maturing mixed-use districts stay competitive as office, retail, multifamily and hospitality demand patterns continue to shift? The experience of South Coast Metro in Orange County, Calif., offers several practical lessons. In the 1960s, developer and philanthropist Henry Segerstrom envisioned the growth of a vibrant urban center that became South Coast Metro, covering 2,500 acres within 3.5 square miles, including sections of Costa Mesa and Santa Ana. Today, the district’s continued evolution offers a useful case study for other employment centers, mixed-use districts and economic development organizations looking to remain relevant as tenant and resident expectations change. Start with a Strong Anchor, then Keep it Current When the Segerstroms developed South Coast Plaza, they believed the indoor shopping destination would become a magnet, attracting others to the area. That anchor helped establish South Coast Metro’s identity well beyond Orange County. The lesson for other districts is that an anchor only works if it continues to evolve. Tenant mix, programming, dining, public space and visitor experience all need regular attention as consumer and workforce expectations change. Make Experience Part of the Business Case Office districts can no longer rely on …

August 14, 2026

California Industrial Market Reports Western Western Market Reports

Power-Hungry Users Drive Orange County Industrial Demand

by John Nelson August 7, 2026

— By Wes Hunnicutt of Stream Realty Partners — The Orange County industrial market is showing signs of stabilization through the first half of 2026 after experiencing more challenging conditions throughout 2025. Vacancy has increased from the historic lows seen during the pandemic-driven expansion cycle and is currently hovering around 5.5 percent, while asking lease rates have begun to stabilize following a significant correction from the record highs achieved in 2023. Since the beginning of 2025, more than 3 million square feet of new Class A industrial inventory has been delivered throughout Orange County, representing more than 20 industrial distribution development projects. While these developments have elevated overall market availability, leasing activity within the newly delivered product has been slower than anticipated. Many of these buildings have remained vacant for 10 months or more after completion, reflecting a narrower pool of tenants able to justify the occupancy costs associated with large, modern industrial facilities. Notable leasing transactions within recently delivered Class A developments include: — Anduril Industries’ 177,766-square-foot lease at 1100 Valencia Ave. in Tustin — Anduril Industries’ 162,656-square-foot lease at 3100 South Harbor Blvd. in Santa Ana — Hyper Solutions’ 100,784-square-foot lease at 2100 East Howell Ave. in Anaheim …

August 7, 2026

California Market Reports Office Western Western Market Reports

Orange County Office Finds Firmer Footing After Years of Vacancy Pressure

by John Nelson July 31, 2026

— By Shane Halpern of Avison Young — The Orange County office market comprises about 1,800 buildings totaling more than 126 million square feet of inventory. After navigating a period of elevated vacancy and negative absorption between 2020 and 2023, the market has entered a measured recovery phase characterized by three consecutive quarters of positive net absorption, declining vacancy and stabilizing rental rates. Over the past decade, the Orange County office market has delivered 78 properties and 8.1 million square feet of new supply, supported by a regulatory environment that’s comparatively more business-permissive than neighboring Los Angeles County. Orange County employment grew from 1.7 million jobs in 2020 to more than 1.8 million in 2025, an 8.6 percent increase over five years. It did this despite a 1.1 percent regional population decline over the same period. Demand for office space is anchored by three industries: healthcare, government and professional services. All of these sectors have demonstrated consistent space requirements through varying market cycles. After peaking at 14.8 percent in 2023, total vacancy has compressed to 12.6 percent in the first quarter of 2026, the lowest level recorded since first-quarter 2022. The market has posted three consecutive quarters of positive net …

July 31, 2026

California Market Reports Multifamily Western Western Market Reports

OC Multifamily Market Continues to Gain Momentum

by John Nelson July 24, 2026

— By Shane Shafer of Colliers — The Orange County multifamily market continues to attract significant investor attention as buyers increasingly view the broader Southern California environment as an opportunity to acquire assets at more attractive prices following the market’s recent adjustment. Orange County has emerged as one of the most sought-after investment destinations due to its strong economic fundamentals, population growth and operational stability. This renewed confidence has led to increased transaction activity and greater competition for well-located assets throughout SoCal’s best multifamily submarkets. Looking ahead, market fundamentals are expected to continue improving. Employment growth, housing affordability challenges and limited new supply continue to support long-term apartment demand. Markets like Orange County are particularly well-positioned due to its diversified economies, high barriers to entry and strong demographic trends. These factors have contributed to stable occupancy levels and continued rent growth across much of the region, especially in urban infill submarkets. A notable trend in today’s market is the increasing number of Los Angeles-based owners seeking acquisitions in Orange County. This market allows investors to diversify geographically while remaining close to existing portfolios. Many owners view this strategy as an effective way to balance exposure across multiple Southern California markets …

July 24, 2026

California Market Reports Restaurant Retail Western Western Market Reports

It’s Summertime in SoCal, And Orange County Retail Is Hot

by John Nelson July 17, 2026

— By John Read of CBRE Retail Investment Properties-West — Often defined by its 42 miles of Pacific coastline, Orange County’s weather may not be the hottest throughout the Southern California region, but its retail performance arguably is. Orange County remains a target for retailers and investors alike, driving it to be one of the strongest retail markets in the larger region and nation. Orange County’s coastline and famously consistent weather with globally recognized theme parks — Disneyland and Knott’s Berry Farm — and retail landmarks like South Coast Plaza and Fashion Island, do contribute to the region’s exposure and appeal, but the county’s retail fundamentals are planted in its scale and demographics. Orange County’s nearly 800 square miles are home to more than 3.1 million residents and one of the most diverse populations in the U.S. with significant affluence and education. Average household income exceeds $157,000 and 46 percent of residents hold a bachelor’s degree or higher. With diversified industry sectors and major employers, including Disney, UC Irvine, Providence, Kaiser Permanente and Hoag, Orange County’s unemployment rate remains low, ending May 2026 at 3.5 percent. Together, those factors support retail fundamentals that remain stronger than many comparable markets. The …

July 17, 2026

California Market Reports Office Western Western Market Reports

A Crisis of Office Identity: Downtown LA’s Coming-of-Age Story

by John Nelson June 5, 2026

— By George Crawford of Kidder Mathews — In the city where heart-wrenching Hollywood movies originate, we bear witness to the harrowing coming-of-age story for one of the largest office submarkets in one of the largest metropolitan economies on earth, Downtown Los Angeles (DTLA). “I’m going to make him an offer he can’t refuse.” The Godfather, spoken by Don Vito Corleone It was almost too good to be true. In 2016, DTLA was the star of a commercial real estate love story. Landlords and tenants were captivated by a compelling script about creative tenants fleeing the expensive Westside into the welcoming arms of DTLA and sexy adaptive reuse offices. A steady flow of capital inspired 50 percent of DTLA’s submarket to trade in a 24-month period. Downtown was poised to rival the traditional metropolis, while retaining its gritty charm. Like any Hollywood romance, the chemistry was undeniable and the ending seemed predictable: sustained rent growth and long-term tenant demand. Then came the plot twist. “Where are we going so very quickly?” The New Adventures of Winnie the Pooh, spoken by Piglet The pandemic accelerated what technology had been threatening for years. Workplace flexibility and changing corporate …

June 5, 2026

California Market Reports Multifamily Western Western Market Reports

Multifamily Resets for a High-Velocity Recovery in Los Angeles

by John Nelson May 30, 2026

— By Kitty Wallace of Colliers — The Los Angeles multifamily market is undergoing a short-term reset as a recent wave of deliveries has softened rents and modestly increased vacancy. However, this dislocation is proving transitory as development has slowed dramatically and the forward pipeline is effectively falling off a cliff beyond 2026, reinforcing what remains one of the most supply constrained and fundamentally durable markets in the country. Since the onset of COVID, the Los Angeles market has contended with elevated legislative risk, homelessness and crime concerns, modest population fluctuations, rising operating expenses, and, most notably, increased insurance premiums and utility costs. Yet, with a vacancy in the mid-5 percent range, this multifamily market continues to outperform the national average of roughly 8 percent. Rents are now stabilizing and beginning to inflect upward as concessions burn off and demand normalizes. Policy Headwinds, Construction Challenges, Emerging Tailwinds The ULA tax, imposing a 5.5 percent levy on transactions above $10.6 million, has further constrained new construction. This has made it increasingly difficult for projects to pencil and has driven many sites toward lower-density uses or affordable housing backed by subsidized capital. As a result, much of the current development activity is concentrated among …

May 30, 2026

California Market Reports Restaurant Retail Western Western Market Reports

LA’s Retail Investment Market Centers on Reset, Resiliency and Re-Engagement

by John Nelson May 23, 2026

— By Mark Damiani of CBRE — Los Angeles has always been a market that requires conviction. Recent headlines have tested that conviction, but institutional capital continues to look through short-term noise and focus on long-term fundamentals. By that measure, Los Angeles remains one of the most structurally advantaged retail markets in the United States, defined by scale, supply constraints and global relevance. The market today is not without challenges, but fundamentals are stabilizing and capital is re-engaging following a meaningful repricing cycle. A Global Gateway with Structural Advantages Greater Los Angeles is one of the largest retail markets in the country, with about 378 million square feet of inventory. It benefits from a diverse economic base, significant tourism, and a consumer profile that spans both necessity and luxury spending. At the same time, new supply remains extremely limited. Total deliveries in 2025 were negligible relative to the size of the market, continuing a multi-year trend of underdevelopment. Entitlements, construction costs and land availability remain significant barriers, particularly in infill locations. This combination of scale and scarcity continues to underpin long-term investment theses for institutional capital. Leasing Fundamentals: Stabilization with Positive Momentum Leasing fundamentals across LA have proven more resilient than broader narratives …

May 23, 2026

California Industrial Market Reports Western Western Market Reports

LA’s Industrial Market Stabilizes After Record Highs

by John Nelson May 16, 2026

— Matt Moore and Wes Hunnicutt of Stream Realty Partners — The Los Angeles industrial real estate market is stabilizing after a historic run of record-high rents and the all-time-low vacancy seen in 2022 and 2023. Pandemic-driven demand pushed users to take on additional space at a rapid pace, with supply chain concerns forcing tenants to carry more inventory. As the pandemic subsided, the market began a softening period in 2024 through early 2025. This brought about a massive rent correction as tenants began to give back space and right-size their operations. Stabilization has begun, however, and most investors feel the market has found its bottom and is beginning to rebound at a normalized, moderate pace. Vacancy rates at the peak were less than 2 percent in a market with nearly 1 billion square feet of inventory, while rates hit $1.85 per square foot (triple net) in early 2023. Los Angeles’ industrial market has now settled at about 6 percent and $1.43 per square foot, which most would consider healthy. Today, tenants have options when looking for larger blocks of space, and they’re no longer forced to pay record-high rents with minimal concessions from landlords. Third-party logistics providers have continued …

May 16, 2026

California Market Reports Multifamily Western Western Market Reports

Fundamentals Hold Steady as Growth Moderates in OC’s Multifamily Market

by John Nelson March 20, 2026

— By J.C. Casillas of NAI Capital — Orange County’s multifamily sector entered 2026 in a period of moderation. Following a recent peak in deliveries, fourth-quarter 2025 saw developers pull back sharply, allowing vacancy to stabilize at a tight 3.8 percent even as rent growth plateaued. The shift reflects strategic caution as elevated interest rates and pricing expectations continue to shape underwriting. Demand and Supply Navigating the ‘Supply Cliff’ Vacant units inched up 0.1 percent quarter over quarter to 11,926 but remained down 1.6 percent year over year, signaling gradual relief from earlier supply pressure. Developers delivered just 430 new units in the fourth quarter, a 26 percent drop from the third quarter. This brought year-to-date deliveries to 1,979 units, down 43 percent from 2024. With only 4,775 units still under construction — a 14 percent annual decline — the market is approaching a potential supply cliff that could tighten inventory by 2027. Vacancy held at 3.8 percent, suggesting steady renter demand. Average asking rents slipped $9 from the third quarter to $2,702 per unit. The good news is it still posted a 1.7 percent year-over-year gain. Since the 2024 development peak, higher borrowing costs and construction expenses have tempered the …

March 20, 2026

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