Improving retail sales has helped Orange County shopping centers stay on a recovery track in the first quarter.
The vacancy rate dipped to 5.8% from 6% the previous quarter, though the rate was still a percentage point higher than a year earlier.
The lowest vacancy rates were in North and South OC, both at 5%. The highest was in central OC at 7%.
Most types of shopping centers showed slight improvement in occupancy.
Absorption
Countywide, 101,579 square feet of net space was absorbed in the first quarter. The majority of that was created when the 68,000-square-foot former Mervyns store in Laguna Niguel leased to Hobby Lobby.
Average asking lease rates declined from $2.35 to $2.32, about 12 cents per square foot less than one year ago.
There is no new construction afoot, as planned developments such as Pacific City in Huntington Beach (191,000 square feet) and Plaza San Clemente (575,000 square feet) remain on hold. But retailers offering value pricing continue to expand.
Discounters such as Dollar General and Family Dollar are seeking stores in OC for the first time, competing with Dollar Tree, which is already established in OC.
Fast-casual restaurants continue to expand with gourmet burger concepts such as Burgermeister coming to OC to compete with Five Guys Burgers.
Banks, Others
Banks are another bright spot, with Chase Bank and several smaller banks and credit unions actively seeking sites. But other categories such as greeting card stores and video rentals have virtually disappeared.
Grocery continues to be among the most active categories in Orange County. Walmart Neighborhood Markets announced two stores expected to open soon in Huntington Beach and Rancho Santa Margarita. Wal-Mart’s new concept is part of a wave of stores expected to challenge both established supermarkets and newcomers such as Fresh & Easy Neighbor-hood Market.
Woodward is a first vice president in the Newport Beach office of CBRE Group Inc.
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Net Absorption, Rates, etc. is provided in a Adobe Reader .pdf print-friendly file.
