Across the country, retail locations of various types of stores are closing at a rapid pace. With more and more shopping opportunities available online, more consumers are choosing to spend their money from the comfort of their own homes. However, these trends are not necessarily true for Los Angeles.
For some time now, Los Angeles has remained one of the most expensive and highly sought real estate areas in the country. Currently, the popularity and growth of retail locations in this part of California is one of the reasons for the area’s booming real estate market. At this time, vacancies for retail locations are low, which means they are in high demand by various types of businesses.
Retail in Los Angeles
The percentage of retail vacancies in the Los Angeles area remains at about 4 percent, which is slightly higher than in 2017, but this is still good news for commercial property owners and tenants. If you are a property owner or a business owner, it may prove helpful to understand more about the current state of the commercial real estate market and what it may mean for you. Consider the following:
- Prices for retail locations in L.A. range significantly, depending on location. Prices per square foot range from $6 to $90.
- Los Angeles’ retail trends are the opposite of other parts of the country, where there are more vacancies due to closures.
- Los Angeles is still very popular for established brands to operate stores, as well as new and emerging brands to get their start.
- Retail locations, in particularly popular and busy areas of the city, are more costly and in high demand because of exposure and traffic.
Despite the good news for retail business and commercial property owners in the area, there are still closures and vacancies. It is beneficial for businesses to carefully consider location and work to reduce their risks when choosing to open a physical location in Los Angeles.
Protecting the rights of commercial tenants
If you are a commercial tenant, it is particularly important for you to understand how to protect your interests in the process of choosing a location and negotiating a lease. Before you sign a contract that could impact your retail business, you would be wise to seek an evaluation of your case. An experienced real estate attorney may prove to be a useful and beneficial ally as you make these important decisions for the future of your company.