Greetings, and Happy New Year!  I hope you had a nice holiday season.  Mine was great, as we welcomed a new baby girl to our family!  Little Olivia was born on December 10, 2018 and was the best Christmas present that my family and I could have hoped for.

How was 2018 in the retail sector?  Looking back, we did not see the Retail Apocalypse as many media outlets predicted.  Despite many challenges throughout the retail industry, with retailers such as Toys “R” Us, Orchard Supply, and Kmart shutting down all or most of their locations, our industry is by no means dying.  Here are some of the positive aspects that don’t often make the headlines:

• $1.4 billion of retail properties traded hands in the Inland Empire (IE) this year, which is in line with the region’s 5-year average.
• Many retailers are aggressively expanding in the IE; for example:
  • Costco recently opened a new location in Eastvale
  • Grocers such as Smart & Final, Stater Bros, and Aldi remain active
  • Fitness users like Planet Fitness, Chuze, and EOS have been expanding, as well
• Retail vacancy, at 6.7%, is at its lowest level in 10 years
• The Inland Empire is the leading job growth market in California
• Ontario International Airport (ONT) continues to add passenger flights to new markets, and recently became the #1 cargo airport in the nation
• I had my most successful year ever as a real estate broker!

Since I, and my firm, Progressive Real Estate Partners, are focused solely on retail real estate in the Inland Empire, we keep a close pulse on the market.  I can assure you that retail isn’t going away anytime soon.  However, it’s undergoing significant change, and today’s cap rates are very challenging to pinpoint.  A local market expert can help you determine the most accurate value of your property, in case you are looking to sell now, or are just curious about current market conditions.

If you are facing any challenges or have questions about your retail property, give me a call and I will be glad to help. I can be reached on my cell phone at (949) 209-9696 or via email at mike@progressiverep.com.  Also, feel free to check out my web site at www.mikelincre.com.

Best wishes for a great 2019!

Mike Lin