High street trends diverge from broader retail sector

With the decrease in office and multifamily investment activity in Los Angeles, retail properties have gained increased appeal among investors, largely as a result of sustained limited development in the sector. Transaction activity for retail sales peaked at $6.5 billion in 2022, the most in this 10-year period. Nevertheless, the retail sector experienced a decline consistent with the broader market contraction that began in 2023. Transaction volume decreased by approximately 50% in 2023 to $3.4 billion and fell further to $3.2 billion in 2024, before recovering with a 33% increase to $4.2 billion in 2025.