West LA Retail Sees Best Absorption Run Since 2022 as Small Deals Dominate
The West Los Angeles retail market is starting to stabilize and is riding a "real momentum build," with positive absorption sustained through three consecutive quarters for the first time since 2022, according to a new report from Avison Young for Q1.
"Leasing activity is still active, but it's clearly shifting toward smaller, more targeted deals as tenants become more intentional with their decisions," according to Shane Halpern, market intelligence analyst covering Avison Young's West region.
Looking ahead, he told GlobeSt.com that the trend should continue, with demand staying focused on high-quality, well-located space in core West LA submarkets as tenants prioritize efficiency and overall workplace experience.
Meanwhile, West Los Angeles (WLA) recorded about 1.01 million square feet of leasing activity in Q1 2026, a decline of approximately 90,000 square feet quarter-over-quarter. However, direct lease count increased to 234 transactions from 189, signaling a clear shift toward smaller deal sizes.
Demand remained dominated by tech, media and professional services tenants, with activity driven by relocations into higher-quality, amenity-rich buildings as occupiers continue to right-size footprints.
Leasing activity in West Los Angeles fell from the prior quarter, moderating to 1.1 million square feet. Despite the decline in volume, direct lease count increased, reflecting again the shift toward smaller deals.
WLA recorded 247,821 square feet of positive net absorption in Q1 2026, marking a solid start to the year and extending momentum from late 2025, as a wave of move-ins occurred late last year.
This was the market's third consecutive quarter of positive occupancy gains. Activity remained concentrated in Beverly Hills, Marina del Rey/Venice, and Brentwood.
Lending activity across West Los Angeles is beginning 2026 at a measured pace, with year-to-date origination volume reaching $107 million. But the hope is that it improves in the short-term.
"While larger transactions remain constrained, improving sentiment and growing refinancing demand are expected to support increased lending activity as the year progresses," according to the report.
Source: GlobeSt/ALM