With land still readily available, retail continues to thrive in San Bernardino County, where there has been an increasing number of jobs and housing units, and a surge of young people to fill them.
According to recent reports from CBRE, San Bernardino County posted 162,395 square feet of positive retail absorption in the second quarter of 2018, the newsletter Inlandempire.us reported.
By comparison, the Greater Los Angeles area posted a negative retail absorption rate over the same period, with a loss of 182,971 square feet.
No major shopping centers were completed during this period in the Greater Los Angeles area, although 609,000 square feet remained in the construction phase. Despite a fair amount of retail space coming back onto the market, vacancy in Greater Los Angeles remained static at 5 percent, according to CBRE.
Absorption is calculated by the estimated sum of space occupied and vacated.
Greater Los Angeles’ average asking lease rate also dropped to $2.49 per square foot, a minor decrease of 1.2 percent compared to the same period in 2017.
Meanwhile, San Bernardino County posted $138.17 billion in total retail sales in 2017, and currently has record low unemployment.
Ryan Gast, a senior associate for CBRE, said San Bernardino is on the upswing because of the amount of available land in the county.
There’s more on its way for San Bernardino, as big projects are expected to be completed in the final quarter this year. That includes the Soboba Casino in San Jacinto. The renovated complex will feature an 83,500-square-foot casino floor with 2,000 slot machines and 24 table games. The property will include bars, restaurants and other amenities in addition to a 200-key hotel. [Inlandempire.us] – Gregory Cornfield