— By Tony Solomon of Marcus & Millichap — The positive relationship between retailers and rooftops is proving true in key ways across Los Angeles County. The market’s retail vacancy has risen in recent years — with the metro-wide rate up 120 basis points since 2022 – but the overall measure of 6.5 percent belies strong local dynamics. Retailers are continuing to find opportunities, especially in zones with recent and upcoming residential growth. Multifamily vacancy dropped by 50 basis points or more last year in the Santa Clarita Valley, Southeast Los Angeles and the South San Gabriel Valley. These same submarkets recorded retail vacancy rates at or under 5.2 percent at the onset of this year, which are some of the lowest in the county. Property performance momentum is set to continue in those areas amid numerous upcoming move-ins, including from tenants like Savers and Planet Fitness. The growing local apartment sector is expected to help absorb the primary area of heightened availability: Downtown Los Angeles. Retail vacancy here jumped 220 basis points last year to 9.1 percent, more than 100 basis points above the next highest submarket. Thankfully, that vacancy pressure may begin to ease in the near future. …
— By Caleb Hodge of KWP Real Estate — The Los Angeles office market is undergoing a transformation. Finally. Downtown LA and most of the submarkets were decimated following the pandemic, but leasing activity is increasing. In fact, the fourth quarter of last year saw the highest annual leasing activity since the pandemic was officially declared “over,” according to Savills Research and Data Services. How is this possible? The answer lies in the evolving identity of office spaces, which is driven by the demand for creative office. Despite increased asking rates in certain submarkets, Los Angeles is still a tenant-driven office market. The rub is that hybrid-working models continue to, at times, complicate leasing decisions. Fortunately, highly sought-out creative office space in Los Angeles offers two key incentives: premium amenities and functional, innovative office designs. Creative office space may still be considered niche, but the amenities and design layouts are critical when bringing employees back to the office. In fact, those attributes are highly desired by most modern office workers, whether their industry or physical space is considered “creative” or not. With traffic being a constant factor in LA, centrally located offices with easy commutes for a majority of workers …
— By Patrick Barnes of Avison Young — The Los Angeles industrial property market has experienced increasing space availability and shifting tenant priorities over the past several quarters. Due to concerns about potential labor strikes at East and Gulf Coast ports, the anticipated surge in short-term sublease demand failed to materialize in the fourth quarter of 2024. Additionally, with a labor contract agreement reached in January, any lingering expectations that rerouted shipments would continue to bolster West Coast activity have largely dissipated. Despite a 21.7 percent year-over-year increase in TEU (twenty-foot equivalent unit) volume from 2023 to 2024, sublease availability has risen significantly as TEU tenants have either warehouse capacity or shipments leaving the region by rail. Companies today are reassessing their space needs, focusing on cost savings and operational optimization rather than expansion to deal with inflation and tariffs. Sublease space increased by 12.8 percent quarter over quarter, reaching 11.2 million square feet and pushing the overall availability rate to 9.3 percent. These changes have also led to a drop in industrial rental rates. After peaking at $1.97 per square foot in 2023, average rents have fallen 26.4 percent to $1.45 per square foot in fourth-quarter 2024. However, Class …
— By Brian Anderson of CBRE — Utah’s retail market is shaped by its young population and large households, driving demand for big box stores and quality consumer brands. Utah has the youngest median age of any state in the U.S. by nearly four years, and the largest median household size. Our retail real estate market mirrors these realities. Large-box grocers and membership warehouses dot the landscape, creating gravity points that draw junior boxes, shops and restaurant users to these neighborhoods. Utah’s household incomes continue to rise, while the per capita income remains average. This has led to a concentration of quality — though not luxury — consumer brands in most retail centers. Despite challenges in construction and finance markets, Utah’s ongoing housing expansion is pushing box users and grocers to open new locations. The Salt Lake and Provo MSAs are expected to see several new big box and large grocery stores, mostly in outlying communities, after a quiet 2023 and 2024. Smaller-format grocers focused on organic food are also in permitting stages in established communities. These new locations will spark competition for restaurant and shop users. Health-conscious brands are expected to take space in desirable centers as 2025 progresses. …
— By Rawley Nielsen and Mark Jensen of Northmarq — The Salt Lake City apartment market has undergone significant shifts over the past few years, shaped by broader economic headwinds and local supply dynamics. Fortunately, optimism is returning to the market as interest rates stabilize, supply is absorbed and buyers see new opportunities to enter at attractive pricing. Over the past 36 months, rising interest rates have created challenges for multifamily investment, which have impacted underwriting and transaction velocity. However, recent weeks have provided a reprieve as Treasury rates have come down, bringing renewed energy to the market. Volatility remains a factor, but there is a growing sense that we are at or near the bottom, leading to increased investor interest. One of the biggest headwinds in Salt Lake City has been the supply wave, particularly in the downtown market where an influx of new multifamily deliveries has made it difficult for buyers to underwrite rent growth. Both 2022 and 2023 brought unit deliveries totaling more than 4,000 units, nearly triple the average annual delivery count from the past 10 years. We saw nearly 3,000 units delivered last year, and our team is tracking a similar amount for 2025. …
— By Rebecca Lloyd of Cushman & Wakefield — Industrial market conditions in Salt Lake City softened a bit in 2024, with new leasing activity totaling just over 5 million square feet — a 19 percent decrease from the 6.2 million square feet recorded in 2023. Despite this decline, new sublease activity saw a 33 percent year-over-year increase, reaching 735,000 square feet. Salt Lake City’s Northwest submarket remains the dominant area, accounting for 62 percent of total leasing activity in 2024. This was followed by the Southwest at 28 percent. Collectively, they comprise 90 percent of all leasing transactions in the market. Vacancy rates ended the year at 5.9 percent, a modest 50 basis point increase from the previous year. In a positive shift, the market closed the year with 3.7 million square feet of positive net absorption, a significant increase from the 2.3 million square feet recorded in 2023. The average asking rent for all product types stood at $0.81 per square foot on a triple-net basis, up from $0.80 at the end of 2023. Industrial construction remained robust, with nearly 4.7 million square feet of new space delivered in 2024. This added to the 7 million square feet …
— By Phil Brierley of JLL — The Salt Lake City office market continues to strengthen despite strong systemic headwinds. Last year was a banner year for leasing, with 4.8 million square feet of total leasing velocity. Silicon Slopes once again led all submarkets, representing 43 percent of all leasing. This was followed by the Greater CBD with 25 percent. Absorption was positive through the fourth quarter (for the second consecutive time) at 72,861 square feet, offsetting move-outs earlier in the year. Overall vacancy peaked in 2023 at 18.9 percent and is finally trending in the right direction. It finished the year at 18.6 percent. Subleasing is still a soft spot, especially in Silicon Slopes, with 300,000 square feet of new sublease space hitting the market in the fourth quarter of 2024 alone. Sales volumes rebounded after a dismal 2023, clocking in at $518 million in 2024. RCA notes this is close to the trailing 10-year average of $587 million. Much of that velocity was driven by user sales, including Salt Lake County’s acquisition of the Peace Coliseum, Canyons School District’s purchase of the eBay regional headquarters, the University of Utah’s acquisition of City Center downtown and Onset Financials’ acquisition …
— By Jarrod Hunt of Colliers — Utah’s industrial real estate market continues to show resilience in 2025, supported by healthy tenant demand and an evolving mix of warehouse, flex and manufacturing product types. Leasing activity remains particularly strong in the 20,000- to 50,000-square-foot range, with a steady stream of local fulfillment and light manufacturing tenants driving mid-sized requirements across the Wasatch Front. Product Type and Demand Trends With enhanced industrial tracking now focused by building type, warehouse space stands out as the most active, though flex and light manufacturing buildings are seeing targeted interest. Mid-sized tenants seeking efficient, modern, move-in-ready space continue to account for most lease activity, favoring locations with convenient access to transportation corridors and workforce hubs. South Market Poised for a Breakout Year The South Utah County market is positioned for another active year, with a wave of new deliveries and groundbreakings happening this year. The Ritchie Group’s Global Logistics Center near the Spanish Fork Airport is the region’s largest project. It will feature 13 planned buildings comprising 3.3 million square feet, and early leasing interest is encouraging. While the Central market has led to early year absorption, momentum in the South is expected to build …
— By Shane Shafer of Northmarq — The Orange County apartment market is one of the most dynamic and sought-after real estate sectors in Southern California. Known for its beautiful beaches, high quality of life, and proximity to major job centers like Los Angeles and San Diego, Orange County has become a prime location for renters. As of 2025, the apartment market in the area is marked by a blend of high demand, rising rents, and an evolving landscape shaped by both economic and demographic trends. The demand for apartments in Orange County has been consistently strong in recent years. This is driven by both local and regional factors. The county’s thriving economy — bolstered by sectors like technology, healthcare, tourism and finance — provides ample job opportunities, making it an attractive place for workers from across the state and beyond. This influx of talent, combined with a relatively low housing supply, has kept rental demand high, particularly in areas near major employment hubs, such as Irvine, Costa Mesa and Anaheim. The region’s high desirability keeps apartment vacancies generally low, with occupancy rates often nearing or surpassing 95 percent. New construction, while robust, has not fully kept pace with the …
— By John Read of CBRE Retail Investment Properties-West — The expression “in the black” signifies financial health, a positive outlook, investment opportunities and growth. It’s a phrase that’s resonating strongly with investors, as Orange County’s thriving retail fundamentals spur robust demand for investment properties. Despite ongoing capital market volatility and fluctuating interest rates, Orange County remains a prime target for retail property investors. The county’s strong retail property fundamentals is driven by its diverse, affluent and highly educated population. The average household income in Orange County exceeds $157,000, with more than 46 percent of residents holding a bachelor’s degree or higher. It also boasts a low unemployment rate of 3.8 percent. Retail property fundamentals concluded the fourth quarter of 2024 with a county-wide availability rate of 3.8 percent, down from the previous quarter. This reduction was fueled by sustained demand, limited inventory, minimal future supply, 547,000 square feet of positive net absorption and an average asking rent of $2.57 per square foot, a $0.13 increase from the prior year. These positive trends, combined with limited new retail property construction (only 190,000 square feet of supply, representing 0.1 percent of existing inventory and the lowest share among the nation’s 40 …
Newer Posts