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Southern California retail property investment rises 62% in H1 2026
Retail investment sales totaled $3.52 billion in Los Angeles, Orange, Ventura, and the Inland Empire, despite lower square footage traded and construction activity.
Commercial Observer reports that retail investment sales in Southern California reached $3.52 billion in the first six months of 2026, an almost 62 percent increase versus the same period last year, according to a report from NAI Capital.
The investment jump occurred alongside a 28 percent drop in square footage traded, with 8.35 million square feet sold by the end of June versus 11.55 million square feet in first-half 2025. NAI Capital also said deals have shifted toward higher-value properties, supported by greater alignment between buyers and sellers on pricing.
In terms of activity, completed construction declined 45 percent annually to 473,008 square feet, and the development pipeline fell 10.2 percent to 1.5 million square feet. L.A. County led retail sales volume at $1.7 billion, up 64.6 percent year over year, while asking rents rose 1 percent to $2.98 per square foot triple net.
NAI Capital found vacancy improved, with retail vacancy rising 5.9 percent versus 6.3 percent a year earlier, and average asking rents increasing 1.1 percent to $2.36 per square foot triple net. The outlet added that NAI Capital expects retail investment gains to extend through the second half of 2026, supported by grocery-anchored and service-oriented shopping centers if consumer spending does not drop.