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Los Angeles Retail 1st Quarter 2019 Real Estate Market Review Los Angeles Retail Top Sale Transactions for 1Q19 Square Sale Property Submarket Feet Price Price/SF Buyer Seller Coastal Market Plaza Beach Cities/Palos Verdes 28,000 $40.47M $1,445.43 DSB Properties, Inc. Paragon Commercial Group 600 E Broadway Long Beach 47,570 $29.00M $609.63 Fort Ashford Funds LLC Fortress Investment Group LLC 8330 Santa Monica Boulevard West Hollywood 17,105 $25.30M $1,479.10 Safco Capital Corp. Arden Group, Inc. 2010 E Garvey Avenue Eastern SGV 110,000 $24.61M $223.74 Group 1 Automotive, Inc. Penske Corporation 1404-1408 3rd Street Promenade Santa Monica 14,594 $24.50M $1,678.77 Blatteis & Schnur, Inc. Arno A. Eoscher, M.D., Inc. Trust Top Lease Transactions for 1Q19 Square Property Submarket Feet Date Landlord Tenant 21212 Avalon Boulevard Torrance 39,282 January 2019 Kott Family Trust Undisclosed 21126 S Avalon Boulevard Torrance 39,280 January 2019 Kott Family Trust Undisclosed 700-750 W 7th Street Downtown 24,000 March 2019 National Real Estate Advisors Carr Workplaces 11130 Washington Boulevard Southeast Los Angeles 20,276 March 2019 Franklin Family Partnership LP Planet Fitness 11040 W Pico Boulevard West Los Angeles 20,000 February 2019 Reliable Properties 99 Cents Only Stores Top Under Construction Square Property Address Submarket Feet Owner Delivery Date 6200 E 2nd Street 6200 E 2nd Street Long Beach 255,000 PCH Properties April 2019 The Vineyards @ Porter Ranch Rinaldi Street @ Porter Ranch Drive Western SFV 214,810 Porter Ranch Dev. Co. May 2019 The Collection @ Oceanwide Plaza 1110 S Figueroa Street Downtown 153,192 Oceanwide Holdings Co. Ltd. November 2019 NoHo West-H 6150 Laurel Canyon Boulevard North Hollywood 122,316 Merlone Geier Mgmt., Inc. February 2020 NoHo West-J 6150 Laurel Canyon Boulevard North Hollywood 96,384 Merlone Geier Mgmt., Inc. January 2020 Market Forecast Trends Market Snapshot Annual % 1Q19 4Q18 1Q18 Change New Construction 143,058 163,992 319,693 -55.25% VACANCY UNEMPLOYMENT Under Construction 2,015,344 1,934,571 2,299,571 -12.36% Vacancy Rate 4.2% 4.0% 3.9% 7.69% Average Asking Rents (NNN) $32.28 $31.56 $30.60 5.49% Average Sales Price (SF) $419.05 $463.61 $377.31 11.06% RENTAL CONSTRUCTION Cap Rate 4.47% 4.66% 5.03% -11.13% RATE DELIVERIES Net Absorption (720,093) (167,546) (20,533) N/A YEAR-TO-YEAR BASIS 1st Quarter 2019 Los Angeles Retail Market Review | 1 NEW RETAIL CONSTRUCTION & ABSORPTION AVERAGE ASKING RENT/SF & VACANCY RATE 3.5M $35 7% 3.0M 2.5M $30 6% 2.0M 1.5M $25 5% 1.M 500K 0 $20 4% -500K -1.0M $15 3% -1.5M -2.0M $10 2% -2.5M -3.0M $5 1% -3.5M -4.0M $0 0% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD New Construction Absorption Asking Rent/SF Vacancy Rate SALE & LEASE VOLUME AVERAGE SALES PRICE/SF & CAP RATES 25M $500 8% 20M $400 7% 15M $300 6% 10M $200 5% 5M $100 4% 0 $0 3% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD SF Sold SF Leased Sale Price Cap Rate Kidder Mathews is the largest, independent commercial real estate firm on the Contact West Coast, with more than 750 real estate professionals and staff in 21 offices in Washington, Oregon, California, Nevada, and Arizona. We offer a complete The information in this report was composed by the Kidder Mathews Research Group. range of brokerage, appraisal, property management, consulting, project and construction management, and debt equity finance services for all property types. Jerry Holdner Director of Research 949.557.5050 [email protected] COMMERCIAL BROKERAGE Robert Thornburgh, SIOR, CCIM, CPM Regional President, Brokerage Southern California 310.807.0880 $9B 40M 20M 370+ [email protected] LIC #01324961 ANNUAL ANNUAL ANNUAL # BROKERS kiddermathews.com TRANSACTION LEASING SF SALES SF VOLUME PROPERTY MANAGEMENT VALUATION ADVISORY This information supplied herein is from sources we deem 51M+ 1,600+ 37/23 reliable. It is provided without any representation, warranty or guarantee, expressed or implied as to its accuracy. Prospective Buyer or Tenant should conduct an independent investigation and verification of all matters deemed to be material, including, but not limited to, statements of income MANAGEMENT ASSIGNMENTS TOTAL # and expenses. CONSULT YOUR ATTORNEY, ACCOUNTANT, PORTFOLIO ANNUALLY APPRAISERS/MAI’S OR OTHER PROFESSIONAL ADVISOR. Data Source: CoStar 1st Quarter 2019 Los Angeles Retail Market Review | 2.
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