LOS ANGELES—As the retail sector continues to improve, developers are finding redevelopment opportunities to build new product, according to Stephanie Skrbin, a principal in Lee & Associates' L.A. North/Ventura office. Skrbin sat down with us for an exclusive interview to discuss end-of-the year retail trends in her market, which, overall, has seen a successful year.

“The trend here is redevelopment because the San Fernando Valley is so over built that it is difficult to find existing land,” Skrbin tells GlobeSt.com. “You continue to see developers going in and finding projects with a conversion play or an upgrade to an existing retail project.” She adds that in addition to the area being overbuilt, developers also have a hard time assembling land plots because there are “usually multiple owners involved.” Within this redevelopment trend, she believes retailers will find space in mixed-use properties more and more. “I think the biggest trend that you are going to see in the future is multifamily or some sort of residential or office buildings with ground floor retail,” she adds.

North Hollywood and Burbank are the strongest submarkets in her region because they have been undergoing gentrification over the past five to 10 years. “You will continue to see that in the future,” says Skrbin, pointing to developments, like the Promenade at Topanga, which is slated to come online at the end of 2015. It will be a lifestyle development with restaurants, but will also have service retail, including a Costco.

Like the other sectors, including multifamily in Los Angeles, there is a lot of capital chasing deals in the retail sector as well, although Skrbin notes that local, mom-and-pop retailers have had a little more trouble finding financing. “I think that is getting better,” she says. “The tenants are expanding more frequently these days, although there is almost always a national anchor tenant.”

As we move into 2015, Skrbin says the retail market throughout this region will continue to improve with occupancies declining and rental rates moving up slowly. “The market is definitely pretty strong right now, and I expect that to continue,” says Skrbin. “We will continue to see new projects coming online in the form of redevelopment.”