Is retail leasing growing in Los Angeles in 2026?

Yes. Experiential and service-based retailers are driving strong demand across Los Angeles submarkets.

Which Los Angeles areas have the most retail activity?

Retail activity is strong in the South Bay, Westside, Hollywood, and parts of Downtown Los Angeles.

Are retail spaces getting smaller?

Yes. Many retailers now prefer smaller, more efficient floorplans that reduce overhead and improve operational flexibility.

What types of retail tenants are expanding most quickly?

Fitness studios, medical users, medspas, dining concepts, and boutique shops are among the fastest-expanding categories.

Is mixed-use the future of retail?

Mixed-use developments are expected to dominate future retail due to consistent foot traffic and multiple revenue drivers.

What should landlords upgrade first?

Landlords should prioritize signage, lighting, parking layout, and façade improvements to attract modern tenants.

Are retail rents increasing?

Retail rents are rising gradually in high-demand Los Angeles submarkets for 2026.

Do tenants want long-term leases?

Tenants increasingly prefer flexible, shorter-term leases with multiple renewal options.

Is foot traffic important in 2026?

Yes. Consumer patterns continue to shift toward convenience and in-person experience, making foot traffic essential.

RPM Real Estate Services specializes in leasing strategy, tenant placement, market analysis, and property management to support landlords and tenants.

The 2026 Outlook for Retail Leasing in Los Angeles

gloryanng8
Nov 21, 2025
3 min read

Los Angeles is entering a defining chapter for retail leasing. After years of market transformation driven by e-commerce, shifting consumer expectations, and evolving urban development, 2026 is positioned to be a pivotal growth year—especially for experiential and service-driven brands.

Retail in L.A. is no longer simply about storefronts. It’s about destination spaces, mixed-use integration, community connection, and flexible footprints designed to support hybrid consumer habits.

This comprehensive 2026 outlook breaks down the most important trends shaping the industry and how landlords and tenants can position themselves for long-term success.

Why Retail in Los Angeles Is Stronger Than Headlines Suggest

Contrary to national narratives of struggling retail markets, Los Angeles stands apart:

High tourism volume returning to pre-pandemic levels
Strong population density in walkable districts
Rise of health, wellness, and boutique retail
Mixed-use properties driving consistent foot traffic
Strong suburban commercial corridors (South Bay, San Fernando Valley, Westside)

For more insight, see:

👉 The Rising Importance of Strategic Retail Leasing in Los Angeles

👉 How Retail Leasing Strategies Are Evolving in Southern California

2026 Market Drivers for Retail Leasing in Los Angeles

These core forces will influence the Los Angeles retail market throughout 2026.

1. Experiential Retail Continues to Surge

Consumers want experiences, not just transactions:

Fitness studios
Medical clinics
Beauty & self-care concepts
Entertainment venues
Dining & quick-service restaurants

2. Smaller, More Efficient Floorplans

Brands are reducing leasing footprints and increasing productivity:

1,200–2,500 sq. ft. is the new sweet spot
Modular, flexible layouts are in demand
Storage-light formats supported by micro-delivery

3. The Rise of Mixed-Use Retail

Mixed-use properties offer:

Residential foot traffic
Daytime workers
Evening dining activity

Learn more:👉 Why Mixed-Use Properties Are the Future of Commercial Real Estate

4. Suburban Shifts Strengthen the South Bay

The South Bay remains one of the fastest-growing retail leasing submarkets.

See:👉 Retail Leasing in the South Bay for 2026

Cities leading demand:

Torrance
El Segundo
Redondo Beach
Manhattan Beach

5. Digital Integration Is Now Standard

Retailers integrating digital features perform significantly better:

Mobile ordering
QR-enabled menus
Contactless checkout
Digital loyalty systems

The Most In-Demand Retail Categories for 2026

• Health & Wellness

Primary-care clinics, dental, med-spa, fitness, recovery studios.

• Beauty & Personal Care

Brows, skincare, laser, specialty cosmetics.

• Boutique Food & Specialty Dining

Craft coffee, dessert shops, artisanal foods.

• Entertainment-Based Retail

Arcades, VR centers, escape rooms.

Challenges Retail Landlords Will Face in 2026

Rising construction & TI costs
Competition among submarkets
Higher tenant expectations
Environmental compliance for older buildings
➡️ Related reading:👉 Environmental Regulations That Affect Leasing Commercial Property in Southern California

What Tenants Are Looking For in 2026

Strong signage visibility
Adequate parking
Walkable locations
Flexible layouts
Co-tenancy with lifestyle brands
➡️ More insights:👉 How to Choose the Right Retail Space in Los Angeles

What Landlords Should Do to Stay Competitive

1. Offer Flexible Lease Options

Shorter terms with renewal options are becoming the norm.

2. Invest in Visibility Improvements

Updated signage, lighting, and façade improvements boost leasing interest.

3. Improve Property Management Standards

Strong upkeep = stronger rents.👉 Why Professional Property Management Is Key to Long-Term Commercial Growth

4. Optimize Space for Modern Tenants

Tenants prefer turnkey spaces to minimize upfront investment.

Retail Leasing Will Accelerate in 2026

Los Angeles retail is well-positioned for a strong leasing cycle driven by experiential demand, mixed-use development, and increased consumer confidence.

RPM Real Estate Services continues to help landlords and tenants navigate these evolving trends through data-backed insights and a hands-on advisory approach.

FAQs – Retail Leasing Los Angeles 2026

Is retail leasing growing in Los Angeles in 2026?
Yes. Experiential and service-based retailers are driving strong demand.
Which Los Angeles areas have the most retail activity?
South Bay, Westside, Hollywood, and parts of Downtown.
Are retail spaces getting smaller?
Yes—brands want efficient, agile spaces.
What types of retail tenants are expanding most quickly?
Fitness, dental, medspa, dining, boutique retail.
Is mixed-use the future of retail?
Mixed-use developments outperform traditional retail centers across L.A.
What should landlords upgrade first?
Signage, lighting, parking flow, and façade improvements.
Are retail rents increasing?
Rents are rising moderately in high-demand submarkets.
Do tenants want long-term leases?
Most prefer flexible, shorter-term leases with renewal options.
Is foot traffic important in 2026?
More than ever—consumer behavior favors convenience.
How can RPM help?
Through tenant matching, leasing strategy, property management, and market analysis.