Beverly Hills Retail Bounces Back
The $8.2 million sale of a nearly 5,000-square-foot retail property in Beverly Hills’ Golden Triangle is a signal of the areas swift recovery.
With millions of American vaccinated, the country’s most coveted retail centers are beginning to come back to life. Beverly Hills’ Golden Triangle is among the areas to see a swift recovery as retail restrictions wane and California inches toward a full reopening. A recent sale of a nearly 5,000-square-foot store front there is a sign of the market momentum.
“The pandemic impacted the Triangle for the first year, just like it did the rest of the city because of all the restrictions,” Devin Klein, VP at JLL, tells GlobeSt.com. “However, coming out of Covid, Beverly Hills is bouncing back with a vengeance. Vacancies are being filled, more retailers are touring again and there is a fervor and energy once again in the city that existed pre pandemic.”
In a deal brokered by Klein, George Chamoun acquired a 4,900-square-foot retail property at 9549-9551 Wilshire Boulevard in Beverly Hills’ Golden Triangle for $8.2 million. Chamoun is an owner occupier and plans to house his jewelry business in the store. JLL’s Houman Mahboubi and Klein represented Chamoun and the seller, Ascot Chang USA, in the deal.
The rebound of the retail sector is early, but already Klein has seen significant changes, including rent stability. “Fashion users in the market also started to come back within the last 4-6 weeks, and rents are beginning to stabilize again closer to a level in place pre-pandemic,” he says, adding that new trends are starting to emerge. Now, creative offices, art galleries, high-end grocers and electric car companies are looking at retail locations in Beverly Hills.
Looking ahead, Klein is positive, but says that the recovery is dependent on the continued decline of COVID-19 cases. It is a consensus shared by most of the retail community. In February, the National Retail Federation gave an optimistic annual forecast, but said that the outlook hinged on vaccine distribution. Through the lens of a fading pandemic, it forecasted retail sales would grow between 6.5% and 8.2% to more than $4.33 trillion in 2021 with real GDP growth between 4.5% and 5%.