Top trends in Los Angeles’s retail real estate market.
According to data from CoStar Group Inc., grocery-anchored shopping centers and auto dealerships were the top retail real estate sales in Los Angeles County in 2019. Here are some of the top trends in Los Angeles’s retail real estate market.
Retail real estate experts report that experienced grocery tenants are stable and sure investments. Because grocery locations draw traffic, other tenants in the area benefit as well. This makes locations near grocery properties very attractive to other tenants.
In Los Angeles County, three of the top 10 retail sales of 2019 were car dealerships. This includes a $100 million sale in West L.A., a $61.2 million deal in West Covina, and a $35.5 million deal in Glendale.
The numbers also show that many of the top sales in 2019 were fixer-upper properties. The top sale of 2019 was the Hollywood & Highland Center, which sold for $325 million. This sale showcases some of the main factors that investors look for: existing cash flow and the ability to increase cash flow through renovations. By repurposing properties to create mixed-use developments, buyers are able to maximize their returns.
In 2020, experts anticipate a strong year for retail. While 2019 did see a drop in major retail sales from 2018, experts point out that the decrease wasn’t significant. While real, the retail apocalypse seems overstated in the Los Angeles market. As such, 2020 retail sales are expected to remain on-track with 2019 numbers.
These are some of the top trends in Los Angeles’s retail real estate market. Interested in staying up to date with the latest commercial real estate news? If so, then contact the experts at California Commercial Realty Advisors, Inc. Your commercial realty advisors are eager to assist you with all your real estate needs today.