Santa Monica retail posted $143 million in transaction volume over the last twelve months. Average pricing per square foot declined. Vacancy remains above historical averages. For most markets, that combination signals distress. In Santa Monica, it signals something different.
In this video, Oron Maher, Broker-Director at Maher Commercial Realty, explains why the disconnect between transaction volume, declining per-square-foot pricing, and some of the highest asking rents in the country is creating a genuine value-add window for retail investors who understand this submarket.
What retail investors and property owners need to know:
▶ Buyers are targeting basis discounts while asking rents along Santa Monica’s corridors remain among the highest in the country — that spread is where the value-add thesis lives
▶ Entertainment zoning changes and new housing approvals are emerging as catalysts that could strengthen demand for experience-driven retail tenants along the Promenade and surrounding corridors
▶ The combination of declining acquisition pricing and sustained rent demand creates an entry point that has not existed in Santa Monica retail for years
▶ Investors who move ahead of the zoning and housing catalysts capture the spread. Those who wait for stabilization pay for it
Santa Monica retail is not broken. It is mispriced — and that distinction is where the opportunity sits.
📍 Maher Commercial Realty — Beverly Hills. Retail, NNN, and commercial assets across Greater Los Angeles.
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