Retail Jobs Surge Nationally as Southern California Supply Shrinks, Rents Hold Firm

A tighter market is taking shape heading into the second half of 2026.

Retail trade adds 22,000 jobs nationally as regional construction pipelines shrink by 11% pointing to long-term stability.

The U.S. retail sector showed renewed momentum in April, adding 22,000 jobs and surpassing the relatively flat performance of the past year. Data from the Bureau of Labor Statistics shows that growth was concentrated in warehouse clubs, supercenters, and general merchandise retailers (+18,000), alongside building material and garden supply dealers (+13,000). While department stores (-7,000) and electronics retailers (-2,000) saw modest pullbacks, the net gain reflects a resilient consumer environment that continues to underpin demand for physical retail space.​

What It Means for Southern California Retail​

Southern California’s retail market is mirroring this national resilience, characterized by disciplined supply growth and steady pricing. Regional vacancy softened slightly to 5.9%, up 20 basis points from last quarter, yet average asking rents remained remarkably firm at $2.33/SF NNN. While leasing volume of 2.5 million square feet is down annually, an 11.2% quarter-over-quarter decline in under-construction projects suggests that a shrinking supply will protect landlord pricing power as the market recalibrates. Year-over-year completed construction is down 64.1%, a signal that the supply overhang is largely behind us.​

Q1 2026 Market Highlights

• Los Angeles County: Vacancy held steady at 6.3%. Despite a dip in leasing volume, average asking rents rose slightly to $2.90/SF NNN. Investment appetite remains a major story here, with average sale prices surging to $385/SF, a 47.7% increase over the previous quarter.

• Inland Empire: Standing out as a growth leader, the Inland Empire saw asking rents climb 1.8% this quarter to $1.73/SF NNN. While vacancy nudged up to 6.5%, the market leads the region in new completions (181,928 SF), showing developer confidence in the area’s expanding residential base.

• Orange County: Remains the tightest major market in the region with a low 4.2% vacancy rate. Rents reached $2.50/SF NNN, a 2.5% quarterly increase. Although leasing volume slowed, the scarcity of available space continues to drive high median sale prices, which started the first quarter of 2026 at $689/SF.

• Ventura County: The region’s most supply-constrained market saw its construction pipeline drop to zero this quarter. This lack of new inventory helped maintain a lean 5.6% vacancy rate and pushed asking rents up 2.3% to $2.20/SF NNN.

Outlook

The April boost in general merchandise and home improvement hiring provides a positive signal for Southern California’s dominant power centers and neighborhood lifestyle centers. While the region is navigating a “wait-and-see” period for major leasing commitments, the 64.1% year-over-year drop in completed construction is the primary catalyst for future stability. With very little new space hitting the market, existing vacancies are expected to be absorbed steadily, keeping the retail landscape competitive through the remainder of 2026.