The Los Angeles retail market in 1Q 2026 saw a slight rise in vacancy, softening asking rents, and a continued decline in construction activity, while net absorption remained significantly negative amid shifting tenant demand. Explore our full Los Angeles retail market report for deeper insights into leasing activity, investment trends, and development movements across the region.
1Q 2026 Los Angeles Retail Market: Key Data Points
- Vacancy Edges Up: Retail vacancy rose to 5.7%, increasing 20 basis points year-over-year.
- Asking Rents Decline: Average asking rent decreased to $2.77 per SF per month, reflecting a 4.92% annual drop.
- Construction Pipeline Moderates: Under-construction retail space fell to 642,736 SF, a 23.24% year-over-year decrease.
- Construction Deliveries Fall Sharply: Deliveries totaled 84,026 SF, down 49.34% from the previous year.
- Net Absorption Turns Deeply Negative: Net absorption reached -530,555 SF, indicating substantial space givebacks.
- Sales Pricing Surges: Average sales price increased significantly to $359 per SF, marking a 56.73% year-over-year jump.
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