The Los Angeles retail market in Q4 2025 shows vacancy rates holding steady while asking rents continue to decline. Construction activity remains subdued with a sharp year-over-year drop in projects under development, though net absorption turned positive after two years of negative performance. Explore our full Los Angeles retail market review for detailed trends and transaction insights.
4Q 2025 Los Angeles Retail Market: Key Data Points
- Vacancy Rate Holds Steady: Vacancy remained at 5.6%, up just 30 basis points year-over-year.
- Asking Rents Decline: Average asking rent fell to $2.80 per SF per month, a 3.8% decrease from last year.
- Construction Pipeline Shrinks: Space under construction dropped to 558,594 SF, down 37.9% year-over-year.
- Sales Pricing Softens: Average sales price decreased to $228 per SF, a 5.3% decline from Q4 2024.
- Cap Rates Compress: Average cap rate fell to 5.3%, down 60 basis points year-over-year.
- Net Absorption Rebounds: Q4 absorption totaled 245,756 SF, reversing two years of negative absorption.
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