Retail Continues Slow Rebound | Summer 2024

The Summer 2024 Survey panelists are optimistic overall about the future of retail space markets. Throughout the state, approximately half of the panelists have new projects planned for the next 12 months, and slightly less than half began new projects in the previous 12 months.

In Southern California, about 65% of panelists are forecasting that the demand for retail space will grow more than supply. They are also optimistic about the outlook for both rental and vacancy rates through 2027. In Northern California, the financing of retail development is expected to become more stringent. While vacancy rates are forecasted to be lower over the next few years, rental rates on average are not expected to keep up with inflation. 

Brian Michel, partner at Allen Matkins and Evan Kantor, head of Kennedy Wilson’s Commercial Investment Group share their thoughts on the factors that continue to help drive the rebound in the retail market as part of the Summer 2024 Allen Matkins/UCLA Anderson Forecast California Commercial Real Estate Survey.