You’ll Never Guess the Top Growth Markets For Retailers

Established retailers are targeting lower-priced markets for expansion, according to a new retail study from JLL. The study spotlights Whittier, Glendale and Downey as the top markets for retailers looking for store expansion opportunities in the last two years, from August 2015 to August 2017. These markets have 34% cheaper rental rates than more popular L.A. submarkets. As a result, chains like Starbucks, Dollar Tree and Yogurtland are expanding in these locations. We sat down with Shauna Mattis, SVP at JLL, to discuss the popularity of these submarkets.

GlobeSt.com: What do Whittier, Downey and Glendale have in common that they are attracting retail tenants? 

Shauna Mattis: All three communities are experiencing significant housing growth which is increasing the density for each market.  This is creating emerging markets within each of the cities.  As the neighborhoods increase in size, the retail needs and demands change, which makes the markets more desirable to retailers.  In addition, all three markets offer lower starting rent options—compared to surrounding markets—without compromising on density or consumer profiles. For example, Glendale’s starting rent on average is $30.84 per square foot compared to Pasadena at $34.54 per square foot and Burbank at $39.70 per square foot. Burbank and Pasadena have high barriers to entry and the combination of lower starting rent and new available product is making Glendale a desirable option for all retail categories.