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California  + Inland Empire  + Retail  | 

Retail Hunkers Down and Evolves During Pandemic

A year following the pandemic’s onset, the Greater Los Angeles retail market posted an all-time high total vacancy of 6.6 percent at quarter close, according to CBRE research. Overall retail sales, reflective of brick-and-mortar performance, declined even as non-store retail sales rose more than 25 percent since February 2020.

For traditional retail, however, Los Angeles has bright spots, typified by elevated demand for freestanding product. This type of property is spurred by the profitability and expansion of drive-through operators and the ongoing supply chain investment necessary to sustain e-commerce, buy-online-pickup-in-store models, and the evolving relationship between logistical industrial and retail product types.

Other examples include local retail, which is a mixed bag. However, one 39,877-square-foot retail property, Eagle Plaza, has continued operations with five different tenants including a donut shop, laundromat and a sandwich store having occupied the property since it opened in 1989. The remaining two tenants are government-funded school district operations. The center located at 15776 Main St. in Hesperia recently sold to a Texas-based private buyer for $5.45 million.

Alan Krueger and Vanessa Haddad with CBRE represented the seller, a private local investor.

“We were able to procure 11 offers and help our client sell a multi-tenant asset during a time when many investors and lenders prefer single-tenant properties,” said Haddad. “The asset’s most challenging feature was that one of the tenants occupied more than 51 percent of the property, with a lease coming due in less than a year. All the tenants were able to remain open and pay full rent throughout this past year, which made the buyer feel comfortable with this purchase.”

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About Lisa Brown

Lisa Brown has decades of experience in corporate communications and marketing management with organizations including Coldwell Banker Residential, Grubb & Ellis, Marcus & Millichap, NAIOP, SIOR and ALM. In those positions, she worked in conjunction with chief executive officers and chief marketing officers to create corporate messaging, cohesive branding standards, strategic marketing plans and thought pieces. Brown is a frequent speaker at industry events and an editing adjunct professor for an online course. She has a master’s degree in mass communications from San Jose State University.

  • ◦Acquisition