Orange County Retail Market Report

The following reflects Orange County retail market conditions as of 3Q 2026.

The Orange County retail market in 3Q 2026 experienced falling vacancy and unemployment alongside rising average asking rents, even as construction deliveries slowed on a year-over-year basis. Explore our full Orange County retail market report for deeper insights into leasing trends, sale activity, and submarket performance.

Frequently Asked Questions

What is the current retail vacancy rate in Orange County as of 3Q 2026?

The Orange County retail vacancy rate was 3.3% in 3Q 2026, according to Kidder Mathews research. That is down 20 basis points from 3.5% in 3Q 2025 and slightly higher than the 3.2% recorded the prior quarter (Data source: CoStar). The year-over-year decline reflects continued tightening in retail space availability across the county.

What are average asking rents for Orange County retail space in 3Q 2026?

Average asking rents for Orange County retail space were $2.77 per square foot per month in 3Q 2026, according to Kidder Mathews research. That is up 4.52% from $2.65/SF/mo in 3Q 2025 and up from $2.71/SF/mo the prior quarter (Data source: CoStar). Rents have risen steadily alongside declining vacancy.

How much retail net absorption did Orange County see in 3Q 2026?

Orange County retail net absorption was -141,281 SF in 3Q 2026, according to Kidder Mathews research (Data source: CoStar). Net absorption measures the change in occupied space; a negative figure means more retail space was vacated than leased during the quarter. On a year-to-date basis, however, 2026 net absorption stands at 307,406 SF, compared with 310,752 SF over the same period in 2025.

How much retail construction is underway in Orange County in 3Q 2026?

There was 321,531 SF of retail space under construction in Orange County as of 3Q 2026, according to Kidder Mathews research. That is down 2.94% from 331,262 SF a year earlier (Data source: CoStar). Construction deliveries totaled 2,354 SF in the quarter, bringing year-to-date 2026 deliveries to 110,633 SF, up 12.53% from 98,315 SF over the same period in 2025.

What was the largest retail sale transaction in Orange County in 3Q 2026?

The largest retail sale transaction in Orange County in 3Q 2026 was 2375 N Tustin Ave in the East Orange submarket, according to Kidder Mathews research. The 45,675 SF property sold for $24,275,000, or $531.47/SF, with Melia Homes, Inc. purchasing the asset from Burnham USA Equities (Data source: CoStar).

What was the largest retail lease signed in Orange County in 3Q 2026?

The largest retail lease signed in Orange County in 3Q 2026 was at 200 Corporate Dr in the RSM/Coto De Caza/Ladera Ranch/RMV submarket, according to Kidder Mathews research. 24 Hour Fitness signed for 26,670 SF in July 2026 (Data source: CoStar).

What is the average retail cap rate in Orange County?

The average retail cap rate in Orange County was 5.2% in 3Q 2026, according to Kidder Mathews research. That is up 40 basis points from 4.8% in 3Q 2025 but down from 5.4% the prior quarter (Data source: CoStar).

What is the average retail sales price per square foot in Orange County?

The average retail sales price was $546 per square foot in Orange County in 3Q 2026, according to Kidder Mathews research. That is down 1.00% from $552/SF in 3Q 2025 and down from $522/SF the prior quarter (Data source: CoStar).

What retail projects are under construction in Orange County?

Notable retail projects under construction in Orange County include Katella Commons (50,000 SF) in the Stadium Area, The Canopy at Great Park (34,881 SF) in Outlying Orange County, and Dana Point Harbor (30,000 SF) in the San Juan Cap/S Clemente/Dana Pt/Cap Bch submarket, according to Kidder Mathews research. All three are slated for delivery in 1Q 2027 (Data source: CoStar).

What is the outlook for the Orange County retail market?

The Orange County retail market shows tightening fundamentals heading into 2027, with vacancy and unemployment both trending down and asking rents rising year-over-year, according to Kidder Mathews research. While 3Q 2026 posted negative quarterly net absorption, year-to-date absorption remains positive, and the construction pipeline continues to shrink relative to a year ago, supporting continued rent growth (Data source: CoStar).

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

3Q 2026 Orange County Retail Market: Key Data Points

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

• Vacancy Rate: Retail vacancy in Orange County was 3.3% in 3Q 2026, down 20 basis points from 3.5% a year earlier.
• Average Asking Rents: Rents rose to $2.77/SF/Mo, up 4.52% year-over-year from $2.65/SF/Mo.
• Net Absorption: Net absorption was -141,281 SF in 3Q 2026, though year-to-date 2026 absorption remains positive at 307,406 SF.
• Construction Pipeline: 321,531 SF was under construction as of 3Q 2026, down 2.94% year-over-year, with three notable projects totaling 114,881 SF slated for 1Q 2027 delivery.
• Investment Sales: The average sales price was $546/SF (down 1.00% year-over-year) and the average cap rate was 5.2% (up 40 basis points), led by the $24,275,000 sale of 2375 N Tustin Ave.
• Leasing Activity: Notable July 2026 leases included 24 Hour Fitness (26,670 SF), J. Crew Factory (5,447 SF), and Jet Set Pilates (4,160 SF).

Market Breakdown — Quarterly Comparison

Market Breakdown — Year-to-Date Comparison

Significant Sale Transactions 3Q 2026

Significant Lease Transactions 3Q 2026

Significant Under Construction