IRVINE, CA-Retail leasing activity in Orange County is projected to grow near term thanks to strong sales volume and high personal income, according to a report from Jones Lang LaSalle. Vacancy rates are expected to dip below 5% by mid-2014.

David Bradley, a senior associate with Jones Lang LaSalle Retail, tells GlobeSt.com that geographical areas where there are opportunity, disposable income and population growth are projected to grow the most. “In the short and long term, Orange County's population growth is higher than the national average, which attracts an assortment of restaurants and retail services. Tenants see the opportunity to capitalize on the overall population growth, which leads to higher sales and greater exposure.”

JLL's report shows that Orange County has some unique retail demand drivers, including world-class tourist attractions such as Disneyland, and it has an above-average concentration of employment in the leisure and hospitality sectors. Due to these drivers, rents may begin to make up some lost ground over the next year, and areas with top population growth, including municipalities like Irvine and Anaheim, should see an uptick in retail rental rates.

Bradley adds that over the last five years, the county has seen an increase in “health” retail concepts in the market. “Uses such as yoga, Pilates, barre, spin and Crossfit are opening in retail centers now. In addition, healthy concepts such as juice shops and salad shops are opening locations in many coastal regions along the Southern California coast. This is a trend we will continue to see more and more of in the years to come.”

As GlobeSt.com reported in May, Imperial Promenade, a 50,000-square-foot shopping center in Anaheim, is now 100% leased after owners worked with Coreland Cos. to re-tenant the once 30%-vacant retail center with health-related retail tenants that appeal to women. Coreland signed a Pure Barre Pilates studio, Nekter Juice Bar, Fine Wine & Spirits, Fuji Grill, Anaheim Bike Shop and Curry Out restaurant, among other tenants, offering a studied mix of tenant improvements and concessions to attract and retain them.

Check back with the Orange County page to read an update to this story in which Bradley talks about emerging retail trends he is noticing in the county and where they're headed.