Los Angeles Retail Market Report

The following reflects Los Angeles retail market conditions as of 3Q 2026.

The Los Angeles retail market in 3Q 2026 experienced rising vacancy and falling unemployment, while average asking rents softened and construction deliveries continued to decline year-over-year. Explore our full Los Angeles retail market report for deeper insights into leasing activity, investment performance, and development trends across the region.

Frequently Asked Questions

What is the retail vacancy rate in Los Angeles in 3Q 2026?

The Los Angeles retail vacancy rate was 5.7% in 3Q 2026, according to Kidder Mathews research. This is up 10 basis points from 5.6% in the second quarter of 2026 and up 10 basis points from 5.6% a year earlier in 3Q 2025 (Data source: CoStar).

What are average asking rents for Los Angeles retail space in 3Q 2026?

Average asking rents for Los Angeles retail space were $2.75 per square foot per month in 3Q 2026, according to Kidder Mathews research. This is down slightly from $2.76/SF/Mo in the prior quarter and down 2.54% from $2.82/SF/Mo in 3Q 2025 (Data source: CoStar).

What was net absorption for the Los Angeles retail market in 3Q 2026?

Net absorption in the Los Angeles retail market was negative 164,608 square feet in 3Q 2026, meaning more retail space was vacated than occupied during the quarter, according to Kidder Mathews research. Year-to-date net absorption stood at -173,708 SF through 3Q 2026, an improvement over the -1,132,087 SF recorded through the same period in 2025 (Data source: CoStar).

How much retail space is under construction in Los Angeles in 3Q 2026?

There was 697,446 square feet of retail space under construction in Los Angeles as of 3Q 2026, according to Kidder Mathews research. This is down 4.26% from 728,515 SF a year earlier. Notable projects underway include Shops at Hollywood Park in Inglewood/South LA (117,502 SF, delivering 4Q 2026) and The Walk in Southeast Los Angeles (110,000 SF, delivering 3Q 2027) (Data source: CoStar).

How many square feet of retail space were delivered in Los Angeles in 3Q 2026?

Los Angeles retail construction deliveries totaled 39,413 square feet in 3Q 2026, according to Kidder Mathews research. Year-to-date deliveries of 269,064 SF are down 41.19% from 457,500 SF delivered over the same period in 2025 (Data source: CoStar).

What was the largest retail sale transaction in Los Angeles in 3Q 2026?

The largest retail sale transaction in Los Angeles in 3Q 2026 was Costco Plaza in Alhambra, a 195,455-square-foot property in the Western San Gabriel Valley submarket that sold for $47,793,967 ($244.53/SF), according to Kidder Mathews research. Costco Wholesale Corp. purchased the property from Kimco Realty Corp. (Data source: CoStar).

What was the highest price-per-square-foot retail sale in Los Angeles in 3Q 2026?

The highest price-per-square-foot retail sale in Los Angeles in 3Q 2026 was Kia of Carson in Torrance, which traded at $526.27/SF ($37,891,244 total) on 72,000 square feet, according to Kidder Mathews research. Global Net Lease acquired the property from Modiv Industrial, Inc. (Data source: CoStar).

What was the largest retail lease signed in Los Angeles in 3Q 2026?

The largest retail lease signed in Los Angeles in 3Q 2026 was Crunch Fitness’s 41,000-square-foot lease at Gateway Pointe in the Eastern San Gabriel Valley submarket, signed in July 2026, according to Kidder Mathews research (Data source: CoStar).

What is the average cap rate for Los Angeles retail properties in 3Q 2026?

The average cap rate for Los Angeles retail properties was 6.0% in 3Q 2026, according to Kidder Mathews research. This is up 20 basis points from 5.8% in 3Q 2025. Over the same period, the average sale price per square foot fell 7.11% to $372/SF (Data source: CoStar).

What is the outlook for the Los Angeles retail market heading into 4Q 2026?

The Los Angeles retail market is expected to see continued modest vacancy pressure and a thin construction pipeline, with 697,446 SF under construction as of 3Q 2026, down 4.26% year-over-year, according to Kidder Mathews research. Limited new supply combined with improving year-to-date net absorption (-173,708 SF versus -1,132,087 SF a year earlier) points to a gradually stabilizing market (Data source: CoStar).

Last updated: 3Q 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.

3Q 2026 Los Angeles Retail Market: Key Data Points

Explore our full Los Angeles retail market review for deeper insights into leasing trends, sale activity, and submarket performance.

• Vacancy edged higher: The retail vacancy rate rose to 5.7% in 3Q 2026, up 10 basis points from 5.6% in both the prior quarter and a year earlier.
• Asking rents softened slightly: Average asking rents dipped to $2.75/SF/Mo, down 2.54% from $2.82/SF/Mo in 3Q 2025.
• Construction pipeline continued to shrink: Space under construction totaled 697,446 SF, down 4.26% year-over-year, with Shops at Hollywood Park (117,502 SF) and The Walk (110,000 SF) among the largest projects underway.
• Net absorption remained negative but improved: The market posted -164,608 SF of net absorption in 3Q 2026, bringing the year-to-date total to -173,708 SF — a marked improvement over the -1,132,087 SF recorded through 3Q 2025.
• Construction deliveries fell sharply: Only 39,413 SF delivered in 3Q 2026, pushing year-to-date deliveries to 269,064 SF, down 41.19% from 457,500 SF at the same point in 2025.
• Sale pricing and cap rates moved in opposite directions: The average sale price per square foot fell to $372, down 7.11% year-over-year, while the average cap rate widened to 6.0%, up 20 basis points from 5.8% in 3Q 2025.
• Investment activity led by net-lease and grocery-anchored assets: Top sale transactions included Costco Plaza in Alhambra ($47,793,967 / $244.53 PSF) and 47th Street Pavilion in Antelope Valley ($38,448,682 / $180.18 PSF).

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date Comparison

Significant Sale Transactions 3Q 2026

Significant Lease Transactions 3Q 2026

Significant Under Construction