SAN DIEGO-Experts in the retail sector aresaying that this area is beginning to show signs of stability onthe West Coast and in Southern California in particular. Localinvestors are anxious to purchase quality retail assets, andinvestors nationwide and globally are attracted to the region’sstrong demographic makeup and density, JeremeSnyder, SVP, retail services for ColliersInternational, tells GlobeSt.com.

As GlobeSt.com previously and exclusivelyreported, Australian women’s activewearretailer Lorna Jane has expanded its presence inthe US with 11 new leases throughout the SouthernCalifornia region. The tenant has taken prominent retail sites inSanta Monica, Woodland Hills, Glendale, Irvine and HuntingtonBeach, as well as a warehouse for the support of these sites andonline fulfillment in Santa Monica. Is this a harbinger of what’sto come with respect to international retailers?

Looking at San Diego alone, according to recent research byJones Lang LaSalle, major submarkets with strongdemographic and population growth, a lack of new high-qualitysupply and improving leasing velocity are leading the modestlypositive outlook. The county’s retail market is still bottomingout, and forecasts all for only incremental improvement toabsorption through 2016, but healthy absorption during the latterpart of 2011 helped decrease the vacancy rate by 60 basis points,year over year. However, since much of the desired space is alreadyoccupied, for demand to increase appreciably deliveries of newretail space must increase.