Erewhon Inks First OC Lease in Costa Mesa, Where Retail Rents Outpace the County by 35%
Erewhon Signs First Orange County Lease in Costa Mesa, Where Retail Rents Are Among the Region’s Highest
Erewhon’s move to 17th Street signals intense demand in a retail trade area commanding 35% higher rents than the county average.
The $22 smoothie is coming to Orange County as Costa Mesa retail outperforms the market.
Managing Director of Research and Public Relations at NAI Capital Commercial
Upscale Los Angeles grocer Erewhon, known for $22 smoothies, $33-a-pound Wagyu Ribeye Steak, and a $200 annual membership, has signed a lease at 140 E. 17th St. in Costa Mesa, marking its first foray into Orange County. The company secured space at the former T-Shirts Warehouse site, where it will neighbor Bear Flag Fish Co., The Harp Inn Irish pub, and other retailers. The Erewhon website lists a September 2027 opening.
The arrival of the wellness-focused grocer, known for its organic, ethically sourced offerings and devoted community following, is notable not just for its cult status, but for what it signals about Costa Mesa’s retail market. Average asking rents in Costa Mesa have surged to $3.55/SF NNN, up 1.7% quarter-over-quarter and a striking 19.9% year-over-year, making the city 35.5% more expensive than the Orange County average of $2.48/SF NNN, which has remained essentially flat, edging down 0.8% QoQ with only a two-cent gain year-over-year.
Vacancy tells an equally sharp story. Costa Mesa’s retail vacancy rate sits at just 2.5%, barely moving from the 2.3% recorded in Q1 2026 and a year ago. That is nearly half the county-wide vacancy rate of 4.2%, which has held flat over the same period. This combination of soaring rents and near-zero vacancy reflects intense, demand for space in Costa Mesa’s most desirable trade areas.
Erewhon’s decision to plant its OC flag here is consistent with its broader expansion strategy. The grocer recently opened in West Hollywood and has another location debuting this May 20th in Glendale. Rather than courting traditional media, Erewhon relies on social media influencers to drive awareness, a model that has proven lucrative. A co-branded smoothie with Hailey Bieber, priced at $20, reportedly sold 40,000 units a month, generating $800,000 in revenue at its peak. DTLA and Palisades in Los Angeles County are also planned for 2027 openings, along with a Thousand Oaks location in Ventura County slated for August 2026.
For landlords and brokers tracking Southern California retail, Erewhon’s lease serves as a textbook leading indicator: experiential, premium-positioned tenants are aggressively pursuing high-barrier submarkets, and Costa Mesa is squarely at the top of their list.
