Los Angeles County’s retail sector has been a story of resilience and adaptation in the third quarter of 2023. Among the cautious optimism and strategic adjustments, a 40,382 square foot retail property has hit the market in West Covina. The asset is part of the Woodside Village Shopping Center, located on approximately three acres of land at 1532-1536 E Amar Road. The asking price is $12.2 million, or approximately $302 per square foot.
The marketing efforts for the property are led by Lee & Associates Senior Vice President Randall Dalby. The asset is currently owned by an entity affiliated with YS Saddleback Investors, LLC, public property records show.
The two-building retail property was originally built in 1990. The marketing documents reveal that the six units comprising the asset are fully leased to a mix of national, regional and local tenants, including Giant Dollar and Coin Laundry. Other Woodside Village retail tenants include Bank of America, Home Depot, Target, Petsmart and others. The current cap rate is listed at 5.55 percent and the net operating income is just over $677,385 per year.
Woodside Village Shopping Center is located at the intersection of Amar Road and North Azusa Avenue, with further road links to California State Route 60 and US Interstate Highways 10 and 605.
As indicated in the recent Los Angeles Retail Market Outlook report by NAI Capital for the third quarter of 2023, despite the total vacant space reaching an all-time high of 18.2 million square feet, the vacancy levels appear to be approaching their peak, hinting at a gradual return to normalcy post-pandemic. In reaction to slightly decreased demand, property owners are adapting by becoming increasingly flexible. These adjustments involve lowering asking rents and offering more lenient concessions, resulting in a decline in the average sale price for retail space to $276 per square foot, marking a 17.2 percent decrease from the preceding quarter.
These price modifications have however stimulated growth in both sales and leasing volumes, signaling a promising trend for the market, adds the report. New construction in the retail market has not matched the anticipated demand thus far. At the same time, the market recorded a negative net absorption of 697,394 square feet in the last five quarters. Even with a 51.3 percent surge in sales volume compared to the previous quarter, there was a year-over-year decrease, indicating the ongoing adaptations in the market and the changing sentiment among investors.
The report concludes that the Los Angeles County retail market in the third quarter of 2023 displays a nuanced yet optimistic outlook. Despite enduring challenges, the market is establishing stability in the aftermath of the pandemic.
