The Orange County retail market in Q2 2026 experienced rising vacancy, falling unemployment, increasing rental rates, and declining construction deliveries. Explore our full Orange County retail market report for deeper insights into leasing activity, sales transactions, and submarket performance.
Frequently Asked Questions
What is the retail vacancy rate in Orange County in Q2 2026?
The Orange County retail vacancy rate was 3.8% in Q2 2026, according to Kidder Mathews research. That is up 20 basis points from 3.6% a year earlier and down from 4.0% in the first quarter of 2026 (Data source: CoStar).
How much does retail space cost to rent in Orange County in Q2 2026?
Average asking rents for Orange County retail space were $2.72 per square foot per month in Q2 2026, according to Kidder Mathews research. That represents a 1.56% increase year-over-year from $2.68 per square foot per month in Q2 2025.
What was net absorption in the Orange County retail market in Q2 2026?
Orange County retail net absorption was a positive 240,744 square feet in Q2 2026, according to Kidder Mathews research. Net absorption measures the change in occupied space over the period, so a positive figure means tenants moved into more space than they vacated. Year-to-date net absorption stood at -229,524 square feet, compared with -93,902 square feet over the same period in 2025 (Data source: CoStar).
How much retail space is under construction in Orange County as of Q2 2026?
There was 284,179 square feet of retail space under construction in Orange County as of Q2 2026, according to Kidder Mathews research. That is a 25.54% increase from 226,361 square feet under construction a year earlier.
How much retail construction was delivered in Orange County in Q2 2026?
Orange County delivered 3,000 square feet of new retail construction in Q2 2026, according to Kidder Mathews research. Year-to-date deliveries totaled 85,425 square feet, up from 52,623 square feet over the same period in 2025 (Data source: CoStar).
What were the largest retail sales in Orange County in Q2 2026?
The largest Orange County retail sale in Q2 2026 was 43 Auto Center Dr in the Irvine Spectrum submarket, a 43,849-square-foot property that sold for $49,934,000, or $1,138.77 per square foot, with Gee Automotive Companies acquiring the asset from Tuttle Click Automotive Group. Other major sales included 40 Auto Center Dr in Irvine Spectrum (26,416 SF, $30,066,000) and the Tustin Auto Center in the Parkcenter Area (9,985 SF, $26,725,500), both also sold by Tuttle Click Automotive Group to Gee Automotive Companies (Data source: CoStar).
What were the largest retail leases signed in Orange County in Q2 2026?
The largest Orange County retail lease in Q2 2026 was Burlington’s 26,395-square-foot lease at Von Karman Plaza in the Irvine/Tustin Legacy submarket, signed in May 2026, according to Kidder Mathews research. Other significant leases included Dumos Home at Foothill Ranch Towne Centre South in Lake Forest/Foothill Ranch (22,500 SF) and The Picklr at Yorba Linda Center in Placentia/Yorba Linda (22,410 SF).
What is the average retail sales price per square foot in Orange County in Q2 2026?
The average retail sales price in Orange County was $572 per square foot in Q2 2026, according to Kidder Mathews research. That is a 31.75% increase from $434 per square foot a year earlier (Data source: CoStar).
What is the average retail cap rate in Orange County in Q2 2026?
The average retail capitalization rate in Orange County was 4.9% in Q2 2026, according to Kidder Mathews research. That is up 30 basis points from 4.6% in Q2 2025 and down from 5.6% in the first quarter of 2026.
What major retail projects are under construction in Orange County in Q2 2026?
Major Orange County retail projects under construction in Q2 2026 include The Canopy at Great Park – Bldg 2 in Outlying Orange County (34,881 SF), Dana Point Harbor in the San Juan Cap/S Clemente/Dana Pt/Cap Bch submarket (30,000 SF), and 31762 Old Mission Rd in the same submarket (28,026 SF), according to Kidder Mathews research. All three are scheduled for delivery in the first quarter of 2027.
Last updated: Q2 2026. Data source: CoStar. Compiled by the Kidder Mathews Research Group.
2Q 2026 Orange County Retail Market: Key Data Points
Explore our full Orange County retail market review for detailed insights into leasing, investment, and development trends.
- Vacancy Rate Remains Low: Orange County’s retail vacancy rate measured 3.8% in 2Q 2026, remaining below 4% despite a modest 20-basis-point increase from one year ago.
- Average Asking Rents Continue to Rise: Average asking rents reached $2.72 PSF per month, increasing 1.6% year-over-year and highlighting the market’s strong pricing fundamentals.
- Net Absorption Turns Positive: The market recorded 240,744 square feet of positive net absorption during 2Q 2026, signaling healthy tenant demand and occupancy growth.
- Construction Pipeline Expands: Retail space under construction totaled 284,179 SF, up 25.5% year-over-year as developers advanced new projects across the region.
- Construction Deliveries Increase: Year-to-date retail deliveries reached 85,425 SF, representing a 62.3% increase compared to the same period in 2025.
- Investment Pricing Strengthens: The average retail sales price climbed to $572 PSF, a 31.8% increase year-over-year, demonstrating continued investor demand for Orange County retail assets.
Market Breakdown
| Metric | 2Q26 | 1Q26 | 2Q25 | YOY Change |
|---|---|---|---|---|
| Vacancy Rate | 3.8% | 4.0% | 3.6% | 20 bps |
| Average Asking Rents/SF/Mo | $2.72 | $2.67 | $2.68 | 1.56% |
| Under Construction (SF) | 284,179 | 287,179 | 226,361 | 25.54% |
| Average Sales Price/SF | $572 | $307 | $434 | 31.75% |
| Average Cap Rate | 4.9% | 5.6% | 4.6% | 30 bps |
Market Breakdown — Year-to-Date Activity
| Metric | 2Q26 | 2026 YTD | 2025 YTD | YOY Change |
|---|---|---|---|---|
| Construction Deliveries (SF) | 3,000 | 85,425 | 52,623 | 62.33% |
| Net Absorption (SF) | 240,744 | -229,524 | -93,902 | N/A |
Significant Sale Transactions 2Q 2026
| Property | Submarket | SF | Sale Price | $/SF | Buyer | Seller |
|---|---|---|---|---|---|---|
| 43 Auto Center Dr | Irvine Spectrum | 43,849 | $49,934,000 | $1,138.77 | Gee Automotive Companies | Tuttle Click Automotive Group |
| 40 Auto Center Dr | Irvine Spectrum | 26,416 | $30,066,000 | $1,138.17 | Gee Automotive Companies | Tuttle Click Automotive Group |
| Tustin Auto Center | Parkcenter Area | 9,985 | $26,725,500 | $2,676.56 | Gee Automotive Companies | Tuttle Click Automotive Group |
Significant Lease Transactions 2Q 2026
| Property | Submarket | SF | Transaction Date | Tenant |
|---|---|---|---|---|
| Von Karman Plaza | Irvine/Tustin Legacy | 26,395 | May 2026 | Burlington |
| Foothill Ranch Towne Centre South | Lake Forest/Foothill Ranch | 22,500 | May 2026 | Dumos Home |
| Yorba Linda Center | Placentia/Yorba Linda | 22,410 | May 2026 | The Picklr |
Significant Under Construction
| Property | Submarket | SF | Delivery |
|---|---|---|---|
| The Canopy at Great Park – Bldg 2 | Outlying Orange County | 34,881 | 1Q 2027 |
| Dana Point Harbor | San Juan Cap/S Clemente/Dana Pt/Cap Bch | 30,000 | 1Q 2027 |
| 31762 Old Mission Rd | San Juan Cap/S Clemente/Dana Pt/Cap Bch | 28,026 | 1Q 2027 |
Data source: CoStar. Compiled by the Kidder Mathews Research Group.
ContactGARY BARAGONA |
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