The Los Angeles retail market in Q3 2025 saw a modest rise in vacancy and a continued decline in asking rents, while construction activity and sales pricing both trended downward. Despite these headwinds, net absorption improved significantly year-over-year. Explore our full Los Angeles retail market report for detailed insights into leasing, investment, and development activity.
3Q 2025 Los Angeles Retail Market: Key Data Points
- Vacancy Rate Edges Up: Retail vacancy increased to 5.7%, up 40 basis points year-over-year.
- Asking Rents Decline: Average asking rent dropped to $2.82/SF, a 4.86% decrease from Q3 2024.
- Construction Pipeline Shrinks: Space under construction fell to 597,609 SF, down 24.2% year-over-year.
- Sales Prices Drop Sharply: Average sales price per square foot declined to $198, a 54.4% decrease year-over-year.
- Construction Deliveries Rise Slightly: YTD deliveries reached 407,428 SF, up 9.7% from the prior year.
- Net Absorption Improves: Net absorption YTD was -1.49M SF, an improvement from -1.96M SF in 2024.
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