LOS ANGELES - Cushman & Wakefield

0Cushman & Wakefield | Los Angeles | 2019

LOS ANGELESCushman & Wakefield

Global Cities Retail Guide


LOS ANGELESOVERVIEW

Los Angeles, the “entertainment capital of the world,” is a globally-recognized travel destination for millions of tourists each year. The city’s influence, however, reaches far beyond the glitz and glamour of Hollywood. Fueled by the nation’s largest manufacturing and trade centers, a vibrant startup ecosystem and a robust professional services industry, Los Angeles boasts GDP over $700 billion. Firmly entrenched as the western gateway to America, L.A.’s economic diversity is matched only by the city’s unrivaled cultural diversity, with more than 150 languages spoken amongst the county’s 10.3 million residents.

From Santa Monica to Pasadena, Los Angeles offers retailers an array of high-street submarkets. Massive investments in technology and transit-oriented development infrastructure present a tremendous upside to retailers seeking to expand their brands. The dynamic transformation of Downtown Los Angeles offers retailers the unique opportunity to seize market share in the nation’s second largest consumer market.


WEST HOLLYWOODWest Hollywood is where designers, artisans and fashion icons gather to cultivate new trends. The center of Los Angeles' fashion scene, West Hollywood comprises several unique fashion strips, most notably the Design District and Sunset Plaza. One of the fastest growing submarkets in Los Angeles, West Hollywood boasts significant retail development activity with more projects fully entitled and set to break ground.

Few stretches in Los Angeles offer as diverse a shopping experience as the Design District. Located at the crossroads of Melrose Avenue, Beverly Boulevard and Robertson Boulevard, the Design District houses a distinctive mix of global designers, local boutiques, designer showrooms, and chic sidewalk cafes. With over two hundred visionary merchants, including numerous designer flagship stores, the Design District is a true cultural destination for design-savvy retailers and sophisticated consumers.

Nestled between giant billboards, trendy restaurants, hotels and local boutiques, sits Sunset Plaza, one of the oldest shopping districts in Los Angeles. Dating back to the 1920s, Sunset Plaza's distinctive European-style sidewalk cafes and pedestrian-friendly design feature both design houses.

Located just south of West Hollywood, The Grove is one of the most successful retail centers in the country. Adjacent to L.A.'s famous Farmer's Market, the art-deco style, open-air center attracts an estimated 20 million visitors annually. In over 575,000 sf of retail space, The Grove features more than thirty apparel and specialty retailers.

LOS ANGELESKEY RETAIL STREETS & AREAS

SANTA MONICAStretched along three miles of California coastline, Santa Monica leveraged its robust tourism business to evolve from iconic 20th century resort town to retail mecca. Santa Monica welcomes over 8.4 million visitors a year, spending over $1.9 billion annually, with an average daily spend of $393/day for hotel visitors and $93/day for daytime visitors. Focused on driving foot traffic from the famed Santa Monica Pier to retailers along the Third Street Promenade and Santa Monica Place, the beachfront city made significant capital investments aimed at revitalizing its downtown core and infrastructure.

Located just steps from the Santa Monica Pier, the Third Street Promenade is the centerpiece of the city's retail business. Tapping into the favorable weather and city's vibrant energy, the pedestrian-only thoroughfare features a three-block collage of international brands, local specialty stores, restaurants and street performers. Attracting more than 40,000 visitors per day, the Third Street Promenade reigns as the premier shopping and dining district on the Westside.

At the south end of The Promenade lies the redesigned Santa Monica Place shopping center. The tri-level outdoor mall, anchored by Nordstrom and Bloomingdales, features a great mix of retail stores and astonishing views from the roof top deck.


PASADENAHome to the iconic Rose Bowl, Pasadena's charm and size make it unique among Los Angeles submarkets. Pasadena's historic residential neighborhoods and vintage architecture evoke memories of a bygone era. Visitors to Pasadena find a diverse range of world- class museums, galleries and playhouses, as well as nightclubs offering in jazz, rock and hip hop. A series of outdoor concerts, festivals and other community-focused events attract people from affluent neighboring cities including La Canada-Flintridge, Alta Dena and San Marino. Pasadena's allure, however, is about more than quaint communities, culture and accessibility. Consumers also flock to the myriad of top retailers, trendy boutiques, flanked by a diverse offering of ethnic and gourmet eateries.

Designated as an historic district, Old Town offers an authentic downtown experience. Spanning the four walkable blocks of refurbished buildings are upscale retailers, boutiques, restaurants and night clubs. South Lake Avenue is a ten-block, tree-lined space featuring over 200 businesses including top retailers, major department stores and a wide variety of dining options. The Playhouse District, located between South Lake Avenue and Old Town, is home to premier entertainment and offers a variety of retail stores, restaurants and bookstores including Pasadena's oldest bookstore, Vroman's.


BEVERLY HILLSBeverly Hills' 16-block Golden Triangle, the premier shopping destination in Southern California, showcases world-renowned fashion houses, boutiques and restaurants frequented by city socialites. Dominated by powerhouse luxury labels, Rodeo Drive sits at the heart of this retail paradise. One block to the east Pottery Barn and William Sonoma mix with aspirational brands such as COS, Intermix and Theory, which line Beverly Drive. The triangle's southern border on Wilshire Boulevard, known as Department Store Row, is home to Barney's New York, Neiman Marcus and Saks Fifth Avenue.

Retailers benefit not only from the extraordinary median-income levels of local residents, but also the city's thriving tourism industry. Beverly Hills visitor volume rose to more than 7.5 million in 2018 from 6 million in 2014, an 25% increase. In 2018, strong tourism activity and resident spending contributed to more than $2.8 billion in economic revenue.

The grand opening of the chic Waldorf Astoria in 2017, coupled with a continued emphasis on cultivating clientele in China, Brazil, and the Pacific Rim, secures Beverly Hills' ability to drive tourism dollars to local retailers. One Beverly Hills, the $1.2 billion development, anticipates to become a premier place for visitors and local residents. The mixed-use project currently underway will include 134 stylish hotel rooms, 193 luxury condominiums, and multiple restaurants.


DOWNTOWN L.A.Following the Staples Center’s 1999 arrival, billions in investment dollars have ignited an unrivaled renaissance in Downtown Los Angeles. The emergence of L.A. Live and the JW Marriot/Ritz Carlton have cemented downtown as a viable player for entertainment and tourist dollars. New residents drawn by the allure of urban living and an influx of bars, restaurants and music venues tailored to service them have solidified Downtown’s revitalization and growth.

With 70,000+ residents, 500,000+ employees and 22 million visitors per year, savvy retailers are joining the 3,000+ retailers already present in one of the nine distinct downtown districts. From the Arts District to City West, there are currently 1,839 condos, 2,070 hotel rooms, and 1.3 million sf of retail space under construction. While development spans across downtown, South Park far surpasses the other districts, with nearly half of the residential units and a quarter of the retail space currently under construction within this district.



LOS ANGELESMARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000 SQFT (PSF/YR)

RANGE OF UNIT SIZES(SF)

Golden Triangle (Rodeo/Beverly Drive/Canon Drive)

Affluent locals, Tourists, Celebrities

Louis Vuitton, Cartier, Chanel, Celine, Gucci, Moncler, MAC, Sephora, Intermix, Sandro, Maje, Theory, Alice & Olivia, ALLSAINTS, Neiman Marcus, Saks Fifth Avenue, Ferragamo, Tiffany & Co., TOD'S, Tom Ford, Tory Burch, Van Cleef & Arpels, Versace, Yves Saint Laurent, Agent Provocateur, Bottega Veneta, Coach, Dior, Dolce & Gabbana, Jimmy Choo, Hermes, Alexander McQueen, Alo Yoga, Crate & Barrel, Lululemon, Club Monaco, Guess, Hugo Boss, MiuMiu, Pottery Barn, Prada, Ralph Lauren, James Perse

MCM, Alexander McQueen, GoyardParis, Pomellato, Brooks Brothers, Balenciaga, St. Supery Estate Tasting Salon, Gratitude Kitchen & Bar, Harry Winston

Rodeo : $650-$895North Beverly: $144-$240Canon: $90-$108

All Sizes

The Grove Locals, Tourists

American Girl Place, Apple, Athleta, Banana Republic, Barnes & Noble, Crate & Barrel, Gap, Janie & Jack, Lucy Zahran & Co., MAC, Michael Kors, Nordstrom,Sephora, Vince, Pottery Barn Kids, Swarovski, UGG, Zara, Laduree

Charlotte Tilbury, APL, Ray-Ban, AloYoga, Cariuma, Madewell, Nike

$300-$400 1,000-50,000

Old Town Pasadena Locals, Tourists

Apple, Athleta, Banana Republic, Crate & Barrel, Design Within Reach, Eileen Fisher, Gap,Intelligentsia Café, Joie, New York, Lucky Brand, Lululemon, Lush, MAC, Restoration Hardware, Splendid, Sur La Table, Tesla, Tiffany & Co., Urban Outfitters, Vans, Vince, Zara, Foot Locker, J Crew, Madewell, Origins, Nike Running, Scotch & Soda, Sephora, Container Store

Cotton On, Fresh, Miniso, Mohawk General Store, Neo Pasadena, OSKA, Pressed Juicery, Sugarfina

$79-$96 All Sizes

West Hollywood (Robertson/Melrose/Beverly/La Brea)

Affluent locals, Tourists, Celebrities

Adidas, ALLSAINTS, Helmut Lang, John Varvatos, Marc Jacobs, Mogul, Paul Smith, Theory, Vivienne Westwood, Restoration Hardware, Intermix, Ted Baker, Michael Aram, Christian Louboutin, Rag & Bone, Moschino, Fendi Casa, Stella McCartney, Marc Jacobs, Balmain, Alice & Olivia, Mansur Gavriel

Bldwn, IndochinoLululemon, Bandier, Glossier, Re-Bag,Acne Studios, Linda Farrow, Nike by Melrose, Revolve

Robertson: $72-$120Melrose: $120-$240Beverly: $96-$120

1,000-11,000


LOS ANGELESMARKET OVERVIEW

KEY AREAS / STREETS/SHOPPING CENTERS

CONSUMER PROFILE

MAJOR RETAILERS PRESENT NEW ENTRANTS TYPICAL RENT FOR UNIT OF 2,000 SQFT (PSF/YR)

RANGE OF UNIT SIZES(SF)

Third Street Promenade/ Santa Monica Place Locals, Tourists

Bloomingdale's, Nordstrom, Patagonia, REI, Coach, Louis Vuitton, Michael Kors, Pottery Barn, H&M, Lululemon, Zara, Oakley, Apple, Nike, MAC, Anthropologie, Urban Outfitters, Champs, Pink/Victoria Secret, Arclight Cinema, Forever 21, Guess, Tesla, White House Black Market, Disney, Swarovski, ALLSAINTS, DVF, Free People, HUGO BOSS, L’Occitane, Ted Baker London, Tiffany & Co., Uniqlo, Tumi,, Sur La Table, Billabong, Coach, Dr. Martens, New Balance, Old Navy, Rolex

Innisfree, MUJI, AloYoga, Athleta, Drybar, OrangetheoryFitness, Carlo’s Bake Shop, Ippudo Ramen,Cayton Children’s Museum, STRFSH

$120-$2400 1,000-20,000

Sunset Plaza Upscale locals, Tourists

Badgley Mischka, Balani Custom Clothiers, Blushington, Calleen Cordero, Chin, Drybar, F.P. Journe, Fiore Home Accessories, H&M, Hot Pilates, Hugo Boss, Nicole, Ole Henriksen Spa, Oliver Peoples, Philip Press, Wildfox, Zadig & Voltaire, Fred Segal, Alchemy 43, Wahlburgers

Warby Parker, Leon Max, AR $60-$120 300-30,000

Downtown L.A.

Urban, Trendy, High-Income Residents, Tourists, Young Professionals, CBD employees

A.P.C., BNKR, Shiekh Shoes, Target, Brigade, Brooks Brothers, L’Occitane, MAC, Macy’s, Urban Outfitters, Victoria’s Secret, Virgo, Vlado Footwear, Tanner Goods, GROW, Reformation, Shinola, H&M, Whole Foods, Zara, Warby Parker, Nordstrom Rack, Orangetheory Fitness, 3.1 Phillip Lim, SweetGreen, Blue Bottle Coffee, Nordstrom Rack

Paul Smith, Jordan Brand, Apple, West Elm, A.L.C, Incase, Shopify, Vans, Theory, Uniqulo, Nordstrom Local, Dover Street Market, COS

$36-$85 1,000-100,000


BEVERLY CENTERBeverly Center completed a $500 million renovation in late 2018, transforming the 1980s shopping center into a modern day gathering place with all components of the new type of mall. Upgrades to the vast shopping centerinclude multiple skylights and outdoor space, full of natural light with no clear distinction of where indoor space ends and outdoor space begins. New retailers have joined the existing luxury-based tenants, such as Prada, Burberry and Louis Vuitton. In an effort to increase foot traffic, the main focus of the renovations have been on new dining options as a way to attract consumers to the stores. There will be a mix of high-end full service sit down restaurants, cafes and quicker grab & go options including a gourmet food hall, The Street by Chef Michael Mina located on the top floor.

WESTFIELD CENTURY CITY MALLWestfield’s Century City mall completed a $1 billion renovation, adding 400,000 sf of retail space to the 1.3 million-sf campus. Some improvements include a more diverse tenant mix, ranging from an upgraded 15-screen movie theater, renovated grocery chain, luxury gym, outdoor upscale dining area, and myriad of new fashion retailers. The strategic addition of a health clinic and outdoor event space for live entertainment has transformed what was once a traditional mall. The most anticipated addition covering 67,000 sf was Eataly, the Italian marketplace with a hub of restaurants. The experienced-based eatery allows you to dine in and buy the exact products to replicate the meal at home or take cooking classes in store.

LOS ANGELESSHOPPING CENTERS

THE BLOCThe Bloc, a $250 million dollar redevelopment of office and retail space, opened in the second half of 2016. The re-opening showcased its new open-air shopping space covering a block on 7th Street between Flower Street and Hope Street. The Macy’s anchored center now includes outdoor space for restaurants, shops, and has a direct connection to the Metro Center station. The BLOC selected a diverse tenant mix to include brick and mortar first timers to create an unique in-person experience. Urban Oven, the popular artisanal pizza truck, opened its first ever storefront in 2017. Handcrafted LA transitioned from online only to opening their first flagship store. Additional significant additions include Nordstrom Local, Uniqlo and Joey DTLA. The highly anticipated opening of Alamo Drafthouse Cinema, inked in 2017, will also add value to the shopping center as a retail destination.


LOS ANGELESNEW DEVELOPMENT WATCH

THE GRAND

Total Size 950,000 sf

- Retail GLA 200,000 sf

- Luxury Residences 429

- Equinox Hotel 309 Rooms

Planned Opening Date 2021

Consumer Profile Mass-market to upper-range residents, tourists, and employees

ABOUT THE DEVELOPMENT

Located at the epicentre of Grand Avenue’s cultural corridor, The Grand is poised to be Downtown Los Angeles’ newest dynamic destination for up-scale shopping, dining and entertainment, Designed by renowned architect Frank Gehry, the project is highlighted by two towers, the tallest toping out at 39 stories and featuring 439 mixed-income residences and a 20-story, 309-room Equinox Hotel complete with 12,000 square feet of meeting rooms and facilities, ballrooms and restaurants, lounges and outdoor amenities. The towers will rise above a three-story open-air retail terrace and vibrant public plaza with more than 176,000 square feet of retail anchored by chef-driven restaurants, a collection of luxury shops and movie theatre complex. Situated adjacent to the Disney Concert Hall, The Grand’s unique design will complement and connect with the nearby arts and cultural institutions on Bunker Hill.


LOS ANGELESNEW DEVELOPMENT WATCH

OCEANWIDE PLAZA

Total Size 1,488,101 sf

- Retail GLA 153,192 sf

- Luxury Condos 504

- Park Hyatt Hotel 184 Rooms

Planned Opening Date 2020

Consumer Profile Mass-market to upper-range residents, tourists, and employees

ABOUT THE DEVELOPMENT

Situated across the street from the Staples Center, Oceanwide Plaza aims to offer modern and up-scale retail, living, and hospitality options for the city’s visitors, residents and local employees. The project includes three high rise towers with the tallest tower topping off at 53 stories. A large LED screen wraps around the entirety of the Figueroa Street side of the project giving Downtown Los Angeles a Times Square feel. Once completed, the mixed-use development will offer housing in the form of high-end condos, a 5-star Park Hyatt hotel, and various retail and restaurant options adding great value to the area. Oceanwide Plaza will help establish a community in Downtown Los Angeles by creating an exciting gathering place within walking distance of several frequently visited venues, such as the Staples Center, Convention Center, and recently completed Wilshire Grand Center.


Los Angeles provides an endless assortment of cultural cuisines from street tacos to a five course dinner at an upscale restaurant. Innovative chefs, fresh produce, and unique dining experiences have established Los Angeles as a city with world class restaurants.Culver City has been reinvented as a trendy hangout as obsolete industrial buildings have been converted to fashionable restaurants and shops.

West Hollywood offers a broad cross section of dining options, from world-class, signature restaurants to funky cafes.

Santa Monica, with its various niche markets, has a wide variety of restaurants from upscale eateries and national chains to small cafes and themed establishments.

The Beverly Golden Triangle dining includes a wide range of uber-chic restaurants, chef-driven concepts and finer national chain eateries.

The Grove and the Farmers Market host local operators and national/regional food chains in an outdoor setting.

Old Town Pasadena offers a wide array of cuisines from novelty fast food and ice cream to upscale restaurants, tea shops and wine bars.

Downtown L.A.’s restaurant scene has exploded in recent years. L.A. Live boasts 20 restaurants to choose from before or after a game, concert, or event at the Nokia Theater or the adjacent Staples Center. Along 7th Street is a vibrant Restaurant Row with Top 10 list-topping restaurants. The Arts District is home to world-class eateries.

Hollywood’s main attraction is tourists and there are plenty of California-style restaurants to choose from along the Walk of Fame although it has its share of regional draw locations and clubs as well.

As Los Angeles continues to develop, new eating pockets are emerging, particularly on the East Side. Areas such as Silver Lake, Echo Park, Eagle Rock, and Korea Town are quickly becoming new trendy dining sites offering diverse ranges of cuisine.

LOS ANGELESFOOD & BEVERAGE


FOOD & BEVERAGE MARKET OVERVIEWLOS ANGELES

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING

RENT FOR 3,500 SQFT UNIT

West Hollywood Trendy, locals

Cecconi's, Eveleigh, Gracias Madre, Zinque, UrthCafé, Craig’s, Catch LA, Viale dei Romani, Joan’s on Third, Jaffa, Bacari W .3rd, Robata Jinya, TocaMadea, Jon & Vinny’s, Animal, Fig & Olive, Gusto, Mozza, Chi Spacca, Crossroads, Ysabel, Hedley's, Hugo's, Katana, Koi, Lucques, Night + Market, Saddle Ranch, Salt's Cure, Tender Greens, BluePalms, AGO, BOA Steakhouse, Bossa Nova, Boxwood Café at the London, Carneys Express, Dan Tana's, Fresh Brothers, Guisados, Sushi Park, The Izaka-Ya by Katsuya, E.P. & L.P, Rosaline, Connie and Ted’s, Roku, Jones Hollywood, Irv’s Burgers, Farmhouse, Matsuhisa, The Bazaar by José Andrés

$80-$240

Santa Monica Locals, tourists

Hillstone, Mercado, North Italia, Uovo, Herringbone, Sonoma Wine Garden, Flower Child, Wexler’s Deli, Forma, Cassia, True Food Kitchen, Tender Greens, Elephante, Blue Plate Santa Monica, Blue Stove at Nordstroms, Bubba Gump Shrimp Co.,TheCheesecake Factory, California Pizza Kitchen, Casa Martin, Chinois on Main, Fritto Misto, Hillstone, la Vecchia Cucina,, Santa Monica Seafood, Sugarfish, The Lobster, The Misfit Restaurant + Bar, The Op Café, Seaside on the Pier, Native

$60-$260

Beverly Hills Golden Triangle

Affluent locals, tourists, celebrities

Il Pastaio, Mastro's Steakhouse, Crustacean Restaurant, CUT by Wolfgang Puck at The Beverly Wilshire, Ocean Prime, Gratitude Kitchen & Bar, Ladurée, Wally’s Wine Bar, Avra Estiatorio, Da Pasquale Restaurant, Il Cielo, Nate 'n Al Delicatessen, Sfixio, Spago, The Palm Beverly Hills, E Baldi Ristorante, Ocean Prime, NozawaBar, Café Modigliani, Ferrarini Café, Via Alloro, Bedford & Burns, Jean-Georges, Villa Blanca, Mr. Chow, Il Fornaio, Sugarfish by Sushi Nozawa

$80-$700


FOOD & BEVERAGE MARKET OVERVIEWLOS ANGELES

KEY AREAS CONSUMER PROFILE

FOOD & BEVERAGE OPERATORS INCLUDING

RENT FOR 3,500 SQFT UNIT

The Grove Locals, tourists

Umami Burger, Dominique Ansel Bakery, Groundwork Coffee, Ladurée, Sprinkles Cupcakes, Wood Ranch BBQ & Grill, Blue Ribbon Sushi, Halo Top, The Cheesecake Factory, American Girl Café, Bar Verde at Nordstrom, La Piazza Ristorante Italiano, Maggiano's, The Whisper Restaurant

$300-$400

Downtown L.A.

Urban, hip, trendy, high-income residents, tourists, young professionals, students

Bestia, Broken Spanish, Bottega Louie, Church & State, The Factory Kitchen, Faith & Flower, Fundamental, Tocaya Organica, The Exchange Restaurant, Cento Pasta Bar, Rossoblu, Bavel, Shake Shack, Dunkin Donuts, Sweetgreen,Pitchoun, The Manufactory, Baco Mercat, Factory Kitchen, Urth Café, Zinc Café & Market, Officine Brera, Terroni, Verve Coffee Roasters, Cucina Rustica, Engine Co. No. 28, Fleming's Prime Steakhouse & Wine Bar, Katsuya, JOEY DTLA, Mendocino Farms, Morton’s Steakhouse, Pacific Dining Car, Perch, Tom's Urban, Water Grill, WP24 by Wolfgang Puck, Yard House, Yang Chow, The Halal Guys, The Original Pantry Café, Wokcano, Yard House, SweetGreen,Stumptown, Blue Bottle

$30-$78

No warranty or representation, express or implied, is made to the accuracy or completeness of the information contained herein, and the same is submitted subject to errors, omissions, change of price, rental or other conditions, withdrawal without notice, and to any special listing conditions imposed by our principals.

© 2019 Cushman & Wakefield. All rights reserved.

ERIKA SCHANKEManaging DirectorAmericas Retail Services1290 Avenue of the AmericasNew York, NY 10104, USATel: +1 212 841 5024Mob: +1 404 680 [email protected]

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