Retail resilience in California
Strong job growth across the region
Retail expansion throughout Arizona
WESTERN U.S. a retail powerhouse
SRS in the West
The SRS footprint mirrors the affluent population migration, steady job growth, and low unemployment in the Western U.S. These characteristics, along with easy accessibility to international markets, make this unique region ripe for retailers.
Major Ports
9 Major International Airports
Key gateways for trade with Asia, among the largest and most important ports in the U.S.
The retail landscape in the western United States presents a mix of opportunities and challenges for commercial real estate investors. The region has seen resilient performance in retail sectors, driven by strong consumer demand, especially in areas with robust population growth such as Arizona, Nevada, and Utah. Retail spaces in these states benefit from favorable demographics, tourism, and a relatively lower cost of living compared to coastal markets like California.
However, the broader commercial real estate market is navigating a complex environment influenced by higher-for-longer interest rates and evolving consumer behaviors. While retail spaces in suburban and high-growth areas continue to perform well,
urban centers face challenges with foot traffic and shifting demand patterns post-pandemic. Despite these hurdles, retail remains one of the stronger segments in the CRE market, bolstered by the demand for essential goods, services, and experiential retail formats.
Investors are advised to focus on well-located assets, consider the impacts of rising financing costs, and be aware of the broader economic and geopolitical uncertainties that could affect the market. Strategies such as optimizing liquidity and exploring niche markets within the retail sector could help navigate these challenges while positioning for future opportunities.
High Median Household Income
California, Washington, and Colorado boast some of the highest median household incomes in the country.
Population Growth
Rapid population growth, with states like Nevada and Arizona growing by over 1.3% annually between 2020 and 2024.
Strong Tourism Revenue
Nevada and California continue to see billions in tourism revenue, with Las Vegas alone generating an estimated $86 billion in total economic impact in 2024. Tourism fuels local retail demand, particularly in hospitality, entertainment, and luxury shopping.
Technology and E-Commerce Integration
Tech hubs like Silicon Valley and Seattle foster innovation in retail technologies and e-commerce platforms and help retailers adapt quickly to online and omni-channel shopping trends.
Job Growth and Low Unemployment
Relatively low unemployment and ongoing job growth contribute to economic stability and expanding consumer markets in the Western U.S.
CALIFORNIA
home of retail resilience
California’s young and affluent consumers create a vibrant retail environment. Silicon Valley’s presence in California continuously drives technological innovation in retail.
With a GDP of approximately $4.08 trillion, California remains the largest state economy in the U.S. and the world’s fifth-largest economy. The state continues to be driven by strong contributions from the information technology sector. California’s popularity as a tourist destination further boosts retail opportunities, especially in major cities like Los Angeles and San Francisco.
2024 was a year of moderated growth. California’s job market, particularly in the tech sector, faced headwinds due to higher interest rates and inflation. The state’s housing market is expected to recover from a slump, especially in single-family home construction, which should help stabilize the broader economy.
The UCLA Anderson Forecast suggests that while California’s economy will grow faster than the U.S. average, it will do so at a restrained pace. Risks such as potential changes in national economic policies and geopolitical tensions could impact this growth trajectory.
California’s economy is experiencing a period of slower growth, driven by ongoing challenges in the labor and housing markets, but remains resilient with key sectors continuing to contribute positively.
#1 in new business starts 5th
Largest economy in the world
Fortune 500 companies call California home
Source: CoStar Retail Markets
Location & Accessibility
West Coast Advantage
California’s position on the West Coast provides direct access to the Pacific Ocean, making it a prime gateway for trade with Asia.
Crucial Port Cities
The state is home to some of the busiest ports in the country, including the Ports of Los Angeles and Long Beach. These ports handle a significant portion of U.S. container cargo, facilitating the import and export of goods across the globe.
Major Airports
Los Angeles International Airport (LAX) and San Francisco International Airport (SFO), play a key role in air freight logistics.
Incentives
Tax credit, funding, and job training programs promote growth and expansion within California.
• California Competes Tax Credit
• Advanced Transportation and Manufacturing Sales and Use Tax Exemption
• Research & Development Tax Credit
• Zero-Emission Vehicle Funding Opportunities
• Employment Training Panel
• Economic Development Rate Program
Demographics
Source: U.S. Bureau of Labor Statistics Metro Areas, Esri Metro Areas
CA recent SRS activity
Southern California
Tenant Services
Owner Services
Capital Markets
ON MARKET
Lumberjack Square in Bakersfield, CA
Price: $14,083,000 | CR: 7.50% NOI: $1,056,241
CVS in Los Angeles, CA
Price: $10,242,000 | CR: 4.75% NOI: $486,484
Walgreens in Buena Park, CA
Price: $9,500,000 | CR: 5.58%
Chick-fil-A in Placentia, CA
Price: $8,488,000 | CR: 4.30% NOI: $365,000
RECENTLY CLOSED
Ralphs at Market Lofts in Los Angeles, CA
Sale Price: $20,900,000
Marketplace at The District
Tenant Services
Owner Services Capital Markets
Willow Glen Anchor Space
Northern California ON MARKET
28,845 SF in San Jose, CA
Watsonville Square
1,400 - 2,104 SF in Watsonville, CA
Former Walgreens Spaces 10 sites within San Francisco, CA
Holiday Market in Redding, CA
Price: $13,108,000 | CR: 6.50% NOI: $852,000
BP in Sacramento, CA
Price: $9,526,000 | CR: 5.00% NOI: $476,300
RECENTLY CLOSED
Crossroads Shopping Center in Fremont, CA
Sale Price: $16,600,000
Planet Fitness/Total Wind in Santa Rosa, CA
Sale Price: $13,954,703
PACIFIC NORTHWEST a thriving environment in the
The Pacific Northwest region has experienced robust economic growth in recent years, creating a fertile ground for retail expansion. The region’s strong economy is driven by diverse industries, including technology, manufacturing, and agriculture. The Pacific Northwest is also home to tech giants like Microsoft, Amazon, and Intel which have fueled job growth and increased disposable income levels. Anchoring Portland’s “Silicon Forest,” Intel maintains its largest global site in the region, contributing to a thriving technology sector that employs more than 70,000 people. Portland has established itself as a global hub for athletic and outdoor apparel, serving as the headquarters for Nike, Adidas, Columbia Sportswear, and Under Armour, while also attracting brands like On Running, Hoka, Lululemon, and Arc’teryx to establish a corporate presence in the city. As a result, consumer spending is on the rise across the region.
Sustainability and innovation help shape the PNW retail landscape.
Population growth in the Pacific Northwest is another critical factor bolstering retail expansion. The region continues to attract a young, educated, and affluent demographic. This population growth has led to increased demand for diverse retail offerings, from high-end boutiques to large retail chains, catering to a variety of consumer preferences.
Additionally, consumers in the region show a strong preference for environmentally conscious brands and locally sourced products, pushing retailers to adopt sustainable practices and offer green products. This trend is especially prominent in Oregon and Washington, where there is a growing emphasis on eco-friendly retail environments, which resonates well with the region’s environmentally conscious population. Clean energy also takes up residence in the Pacific Northwest with firms like Vestas, Avangrid, and Powin focused on environmental responsibility, sustainability, and innovation.
Low energy costs Tax
Affordable living
Market Statistics
Source: CoStar Retail Markets
Demographics
SRS RECENT ACTIVITY
Pacific Northwest
Tenant Services
Source: U.S. Bureau of Labor Statistics Metro Areas, Esri Metro Areas
Owner Services
Northgate Marketplace
Medford, OR
Walmart
Excess land sites throughout Oregon
Partial tenant representation list
Capital Markets
ON MARKET
Tractor Supply in Battle Ground, WA
Price: $11,564,000
Chick-fil-A in Lake Oswego, OR
Price: $6,840,000 | CR: 4.75% | NOI: $325,000
NEVADA solid retail foundation
Economic
growth, population increase, and business-friendly policies position Nevada as a prime location for retail expansion.
Nevada’s economy has experienced recent significant growth, creating a strong platform for retail expansion across the state. The economic growth is largely driven by the booming tourism and entertainment industries, particularly in Las Vegas, which continues to attract millions of visitors annually. This influx of tourists contributes to high consumer spending, bolstering retail sales in both urban and suburban areas.
The state has seen consistent in-migration, particularly from California and other neighboring states, driven by Nevada’s lower cost of living and favorable tax environment. This population growth, especially in cities like Las Vegas, Reno, and Henderson, has led to an increased demand for retail services and products, encouraging both national and local retailers to expand their presence in the state.
Nevada’s economic diversification efforts have also played a significant role in supporting retail expansion. While tourism remains a dominant industry, the state has actively promoted growth in sectors like technology, manufacturing, and logistics. This diversification has created more job opportunities and increased disposable income, which in turn fuels consumer spending and supports the retail sector. Retailers are particularly drawn to Nevada’s business-friendly environment, which includes no state income tax and relatively low business taxes, making it an attractive location for expansion.
The rise of e-commerce and the integration of technology into retail operations have also influenced Nevada’s retail landscape. Retailers in the state are increasingly adopting online sales platforms and leveraging data analytics to better understand consumer behavior and preferences.
1st in the nation for solar energy capacity #7
Best state for taxes
Nevada has NO: personal income tax, franchise tax, unitary tax, inventory tax, inheritance tax or estate tax Companies employ Nevada’s workforce 238K
SRS
Las Vegas, NV
Capital Markets ON MARKET
Harmon Square in Las Vegas, NV
Price: $44,440,000 | CR: 6.09% | NOI: $2,707,544
Starbucks in Las Vegas, NV
Price: $2,737,000 | CR: 4.75% | NOI: $130,000
COLORADO
prime for more growth
14%
Population growth in the last decade
$24B+ Annual tourism revenue
2nd Best state to start a business
4th
Best state to find a job
Colorado’s retail expansion is underpinned by strong population growth and a robust economy. The state’s increasing population, particularly in urban areas like Denver and Colorado Springs, has fueled demand for retail services. Colorado’s diverse economy, with key industries such as technology, aerospace, and healthcare, has maintained low unemployment rates, boosting consumer spending and retail growth.
Urban development and infrastructure improvements have also played a critical role. Rapid urbanization has led to the construction of new shopping destinations, making retail areas more accessible. Additionally, investments in transportation infrastructure have enhanced connectivity, encouraging foot traffic and supporting retail activity across the state.
Driven by population growth and urban development, Colorado retail thrives amid shifting consumer trends.
Tourism continues to be a major driver of retail sales in Colorado. The state’s appeal as a year-round destination attracts millions of visitors, particularly in tourist hubs like Denver, Aspen, and Vail. This influx of tourists significantly contributes to the retail sector, with spending in local shops, restaurants, and entertainment venues.
Shifts in consumer preferences are shaping the retail landscape as well. Retailers are increasingly integrating e-commerce and omnichannel strategies to meet evolving demands, while there’s a growing emphasis on sustainability and locally sourced products. The rise of suburban retail and experience-based offerings further highlight the dynamic nature of Colorado’s retail market.
Tenant Services
Owner Services
Ave South Ground-up mixed use project in Loveland, CO
Foothills Mall
Regional mall in Fort Collins, CO
Shops at Northfield
Dominant shopping district of Central Park
Southlands
Super regional center in Aurora, CO
Block 162
Capital Markets
ON MARKET
Sandstone Care in Boulder, CO
Denver’s newest Class A office high-rise Partial tenant representation list
Price: $15,667,000 | CR: 6.75% | NOI: $997,665
Starbucks in Lakewood, CO
Price: $3,167,000 | CR: 6.00% | NOI: $190,015
RECENTLY CLOSED
Kindercare in Broomfield, CO
Sale Price: $9,351,725
ARIZONA
retail expansion on the horizon
Arizona’s retail sector is poised for expansion. The state’s rapid population growth, ranking among the fastest in the U.S., is creating increased demand for retail goods and services. This demographic shift is complemented by steady job market expansion across various sectors, including tech and healthcare, contributing to higher disposable incomes and consumer spending.
The tourism industry’s strong rebound post-pandemic is driving retail sales in popular destinations, while the resilient housing market is spurring growth in home goods and related retail segments. Arizona has also emerged as a significant hub for e-commerce fulfillment centers, supporting both online and brick-and-mortar retail operations. The state’s business-friendly environment, characterized by favorable tax policies and regulations, has attracted retailers looking to expand or relocate.
Arizona is home to a surging ecosystem of global giants, early stage entrepreneurs, and tech-savvy millennial talent.
Ongoing investments in infrastructure and urban development are creating new retail corridors and additional opportunities for growth. Collectively, these factors paint a picture of a dynamic and expanding retail landscape in Arizona, with multiple drivers supporting continued growth and innovation in the sector.
Lowest flat tax rate
Lowest in the nation at 2.5% and the sixth lowest corporate income tax
Strategic location Quality workforce
Immediately accessible to three of the world’s largest economies (California, Texas, and Mexico)
#2 state for workforce quality and availability, and #1 in higher education degree opportunities
Phoenix, AZ
Arcadia Crossing in Phoenix, AZ
SEC Thomas Road & 44th Street
Canyon Trails Towne Center in Goodyear, AZ
NEC Yuma Road & Cotton Lane
Ahwatukee Foothills Towne Center in Phoenix, AZ
SWC Ray Road & I-10
Skyline Ranch Marketplace in San Tan Valley, AZ
NEC Hunt Highway & Gary Road
Asante Trails in Surprise, AZ
SWC Pat Tillman Boulevard & 163rd Avenue
ON MARKET
Tractor Supply in Holbrook, AZ
Price: $8,182,000
RECENTLY CLOSED
Shoppes at Pebble Creek Marketplace in Goodyear, AZ
Sale Price: $7,185,000
Walgreens in Phoenix, AZ
Sale Price: $5,200,000
Retail and Industrial Go Hand-in-Hand
• Today, retailers need a myriad of industrial facilities to serve their rising e-commerce distribution needs.
• Retail owners and landlords are finding it increasingly important to embrace non-traditional retail tenants to remain relevant.
• Net lease investors are finding industrial a lucrative option to diversify their asset portfolio.
Veteran Leadership in the West
Garrett Colburn
President
949.698.1161 | garrett.colburn@srsre.com
RETAIL Newport Beach, San Diego, Inland Empire, San Francisco, Los Angeles
Terrison Quinn
Executive Vice President & Managing Principal
949.698.1107 | terrison.quinn@srsre.com
RETAIL Newport Beach, San Diego, Inland Empire, San Francisco, Los Angeles
Matthew Mousavi
Senior Managing Principal & Co-Head of National Net Lease
949.698.1116 | matthew.mousavi@srsre.com
CAPITAL MARKETS Newport Beach
Patrick Luther
Senior Managing Principal & Co-Head of National Net Lease
949.698.1115 | patrick.luther@srsre.com
CAPITAL MARKETS Newport Beach
Tom Power
Executive Vice President & Principal 415.908.4942 | tom.power@srsre.com
RETAIL San Francisco
Nick Wirick
Senior Vice President & Principal
951.669.1002 | nick.wirick@srsre.com
RETAIL Inland Empire
Ed Beeh
Executive Vice President & Managing Principal
602.682.6040 | ed.beeh@srsre.com
RETAIL Phoenix
Erik Christopher
Senior Vice President & Managing Principal 303.390.5252 | erik.christopher@srsre.com
RETAIL Denver
Tony Pierangeli
Senior Vice President & Managing Principal
303.390.5257 | tony.pierangeli@srsre.com
RETAIL Denver
David Pinsel
Managing Principal, National Industrial Services
310.991.8377 | david.pinsel@srsre.com
INDUSTRIAL Los Angeles
Richard Schwartz
Executive Vice President & Senior Managing Principal 949.868.1389 | richard.schwartz@srsre.com
INDUSTRIAL Newport Beach
Matt Martinez
Senior Vice President & Managing Principal
360.946.4240 | matt.martinez@srsre.com
RETAIL Pacific Northwest
Jeffrey Garza Walker
Executive Vice President & Managing Principal
602.682.6042 | jgw@srsre.com
INDUSTRIAL Phoenix
We’re always looking for top talent at SRS. Reach out to any member of our leadership team for more information on joining SRS Real Estate Partners.
WESTERN Brokerage Team
Robbie Petty EVP & Managing Principal robbie.petty@srsre.com
Scott Ellsworth SVP & Principal scott.ellsworth@srsre.com
Chuck Gibson SVP & Principal chuck.gibson@srsre.com
Alan Houston SVP & Principal alan.houston@srsre.com
Brian Polachek SVP & Principal brian.polachek@srsre.com
Brad Balbo Senior Vice President brad.balbo@srsre.com
Stephanie Davis Senior Vice President stephanie.davis@srsre.com
Anna Sepic Senior Vice President anna.sepic@srsre.com
Gregory White
Senior Vice President greg.white@srsre.com
Ivan Garcia Vice President ivan.garcia@srsre.com
Chris Abdayem, CCIM Senior Associate chris.abdayem@srsre.com
Victoria Williams Senior Associate victoria.williams@srsre.com
Gary Chou EVP & Managing Principal gary.chou@srsre.com
Aron Cline
602.682.6025 Retail Phoenix
602.682.6063 Retail Phoenix
602.682.6035 Retail Phoenix
602.682.6022 Retail Phoenix
602.682.6045 Retail Phoenix
602.682.6016 Retail Phoenix
602.682.6054 Retail Phoenix
602.682.6044 Industrial Phoenix
602.910.3799 Capital Markets Phoenix
602.682.6030 Industrial Phoenix
602.682.6052 Retail Phoenix
602.899.0062 Industrial Phoenix
949.506.2012 Capital Markets Newport Beach
EVP & Managing Principal aron.cline@srsre.com 949.506.3209
Calvin Short EVP & Managing Principal calvin.short@srsre.com 949.506.2009
Matthew Alexander
Don Edrington
Chuck Klein
Joey Reaume
EVP & Principal matt.alexander@srsre.com
EVP & Principal don.edrington@srsre.com
EVP & Principal chuck.klein@srsre.com 619.223.3017
EVP & Principal joey.reaume@srsre.com 949.506.2015
Carlos Lopez Executive Vice President carlos.lopez@srsre.com
Rich Walter
John Few
Pat Kent
Scott Landgraf
Andrew Peterson
John Redfield
James DeRegt
Brad Fox
Jeff Gates
Debra Hoppe
Nick Krakower
Casey Mahony
Jeff Straka
Christopher Tramontano
Patrick Weibel
Executive Vice President rich.walter@srsre.com
SVP & Managing Principal john.few@srsre.com
SVP & Principal pat.kent@srsre.com
SVP & Principal scott.landgraf@srsre.com
SVP & Principal andrew.peterson@srsre.com
SVP & Principal john.redfield@srsre.com
Senior Vice President james.deregt@srsre.com
Senior Vice President brad.fox@srsre.com
Senior Vice President jeff.gates@srsre.com
Senior Vice President debra.hoppe@srsre.com
Senior Vice President nick.krakower@srsre.com
Senior Vice President casey.mahony@srsre.com
Senior Vice President jeff.straka@srsre.com
Senior Vice President chris.tramontano@srsre.com
Senior Vice President pat.weibel@srsre.com
Chris Beauchamp Vice President chris.beauchamp@srsre.com
Joe Chichester Vice President joe.chichester@srsre.com
Townsand Cropsey Vice President townsand.cropsey@srsre.com
Amber Edwards Vice President amber.edwards@srsre.com
Dave Faris Vice President dave.faris@srsre.com
Michael Fowle Vice President michael.fowle@srsre.com
Winston Guest Vice President winston.guest@srsre.com
Adam Handfield Vice President adam.handfield@srsre.com
Markets Newport Beach
Markets Newport Beach
Markets San Diego
Newport Beach
Retail, Capital Markets & Industrial
Kevin Held Vice President kevin.held@srsre.com
619.361.7662
McCall Huske Vice President mccall.huske@srsre.com 949.270.8202
Christopher Kehl Vice President chris.kehl@srsre.com
Greg Labarre Vice President greg.labarre@srsre.com
949.270.8235
Markets San Diego
Newport Beach
Newport Beach
619.489.9002 Capital Markets San Diego
Zach Leffers Vice President zach.leffers@srsre.com 949.270.8203
Chad Lieber Vice President chad.lieber@srsre.com 619.489.9004
Cortland Lioi Vice President cortland.lioi@srsre.com
Matt McNeill Vice President matt.mcneill@srsre.com
949.506.2007
Newport Beach
Markets Newport Beach
Markets Newport Beach
619.349.7460 Capital Markets San Diego
Alexander Moore Vice President alexander.moore@srsre.com 949.698.1164
Nick Moscicki Vice President nick.moscicki@srsre.com 949.629.4625
Dale Robbins Vice President dale.robbins@srsre.com
Tony Vuona Vice President tony.vuona@srsre.com
Zack Williams Vice President zack.williams@srsre.com
Robert Donnell First Vice President robert.donnell@srsre.com
Sarah Edwards First Vice President sarah.edwards@srsre.com
Susan Harris First Vice President susan.harris@srsre.com
Jake Prater First Vice President jake.prater@srsre.com
Stephen Sullivan First Vice President stephen.sullivan@srsre.com
Bree Casas Senior Associate bree.casas@srsre.com
Markets Newport Beach
Newport Beach
949.270.8200 Capital Markets Newport Beach
949.270.8211 Retail Newport Beach
949.506.5027
Markets Newport Beach
San Francisco
Markets Newport Beach
Markets Newport Beach
Newport Beach
Miranda Montgomery Senior Associate miranda.montgomery@srsre.com 951.669.1004
Steven Roberts Senior Associate steven.roberts@srsre.com
Hannah Rogers Senior Associate hannah.rogers@srsre.com
Parker Walter Senior Associate parker.walter@srsre.com
Kyle Zimmer Senior Associate kyle.zimmer@srsre.com
RJ Dumke Associate rj.dumke@srsre.com 949.438.3986
Tommy Feldman Associate thomas.feldman@srsre.com 949.749.7483
Inland Empire
Markets Los Angeles
Newport Beach
Newport Beach
Markets Newport Beach
George Gomez Associate george.gomez@srsre.com 949.519.1667 Capital Markets Newport Beach
Savannah Guel Associate savannah.guel@srsre.com
Jonny Justus Associate jonny.justus@srsre.com
Hoffman Moore Associate hoffman.moore@srsre.com
Nicholas Stanley Associate nick.stanley@srsre.com
Joe Beck
San Francisco
Beach
949.603.0365 Capital Markets Newport Beach
951.669.1007 Retail Inland Empire
Senior Vice President joe.beck@srsre.com 303.295.4835
Andrew Clemens Senior Vice President andrew.clemens@srsre.com
Tami Lord Senior Vice President tami.lord@srsre.com
Justin Gregory Vice President justin.gregory@srsre.com
Jim Hoffman Vice President jim.hoffman@srsre.com
Patrick McGlinchey Vice President patrick.mcglinchey@srsre.com 303.390.5219
Ryan Tomkins Vice President ryan.tomkins@srsre.com
Jack Lazzeri Senior Associate jack.lazzeri@srsre.com
Hillary Kolber Associate hillary.kolber@srsre.com
Raleigh Lau
Senior Associate raleigh.lau@srsre.com
Kim Phan Associate kim.phan@srsre.com
Denver
Denver
Pacific Northwest
