Ground-Up Retail Builds Make a Comeback

TUSTIN, CA—Ground-up development of neighborhood retail centers is making a comeback, according to Matt Hammond, director of retail brokerage for Coreland Cos. Hammond says with retail vacancy below 5.5% in the Greater Los Angeles area, a group of infill projects are in the pipeline and generating leasing activity.

“While much improved, the general retail market remains unsteady given recent store-closure announcements by Staples, Radio Shack and other national retailers. However, local neighborhood developments are thriving, especially those not reliant on big-box anchors. Leasing activity continues to steadily increase, and developers are regaining confidence as evidenced by a number of neighborhood retail ground-up developments in the 15,000- to 50,000-square-foot range.”