Retail & Restaurant Market Conditions for Commercial Real Estate in Mid-Wilshire/Koreatown of Los Angeles
General State of the Market - Leasing Activity: Flat, Rising or Declining? General Outlook?
Typically, from 2013 to 2014, overall real estate market conditions for retail have been stable. The general state of the market for commercial properties, specifically, retail leasing activity rental rates have been flat to declining with increased vacancies, primarily due to new product coming to market, recently constructed developments or renovated mixed use apartment/retail projects by landlords and investors. The overall market in the next year is anticipated to improve in terms of both rental rates and vacancy rates as space is absorbed or leased up.
New retail space availabilities from ground up developers have generated recent, renewed interest from prospective national and regional credit tenants, years prior, would not have even thought of opening a first store, relocating or expanding their business to Mid-Wilshire/Koreatown. Increased retail lease rates are expected to spill over to increased demand for older retail product which will also benefit and the general outlook is positive. Real estate appraisers are having difficulty valuing market level rents and sale prices.