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The Los Angeles retail market has a lot of strengths. Asking rents are up, overall, to $33.34 per square foot, according to a new report from JLL. However, while rents continue to rise, a sign of demand, the vacancy rate has grown from 2018 to 46% and net absorption last year was negative 1.2 million square feet. The vacancy rate is climbing even as new construction activity slows, down year-over-year, according to the report.

“America has too much retail square footage and not all of it is good,” Benjie Baker, VP at JLL, tells GlobeSt.com. “That’s a given. Furthermore, with the amount of data available, owners and retailers have a much more accurate read on the true value of a space. That is causing tremendous bifurcation in the market between commodity retailers and experiential retailers, including entertainment concepts. This makes good real estate even more valuable and poor real estate less.”

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.

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