Retail Sector Proves Resilient Due to Continued Population and Retail Growth

Population growth and new housing development in San Bernardino County are fueling strong retail activity across the region. According to CBRE’s 3rd Quarter 2021 Retail Market Report, net absorption, construction, and lease rates have all increased this year. The report posted net absorption, which is the sum of square feet physically occupied, for third quarter at 140,781 square feet. New construction for third quarter was 926,428 square feet of space, a significant increase over second quarter 2021 construction activity of 110,690 square feet. Lease rates continue to improve as well. “Neighborhood grocery-anchored centers are on a huge uptick and fast food quick-service restaurants are all expanding thanks to an increased emphasis on eating out versus dining at home,” said Ryan Gast, vice president of CBRE. He added that an influx of millennials into the county is making a difference. “Millennials on average tend to eat out rather than cook at home. That’s a factor in this sector’s expansion activity coupled with housing growth out here that is just outrageous.” According to CBRE, the most active specialty grocers in the market include brands such as Grocery Outlet, Aldi, Sprouts and Amazon Fresh. San Bernardino County’s median age is 33 years old, younger than the median age of California and the nation. According to the Jobs EQ, 2021 report, San Bernardino County’s lucrative millennial demographics (people from the age of 25 to 40) exceed the state and nation as well, with continued population growth expected for the next five years. Top San Bernardino County communities experiencing new retail development include Ontario Ranch and Chino. To that end is New Haven Marketplace, a newly-opened shopping center in Ontario Ranch, anchored by a 45,204-square-feet Stater Bros. market. According to a major market tracker, Ontario Ranch replaced Irvine Ranch as Southern California’s top selling master-planned community this year and No. 5 nationally. A benefit of population growth has been an influx of new brands into the region. In 2021 Top Golf, an internationally-renowned technology-enabled entertainment experience, began construction on its 6,000-square-feet facility on 16.7 acres of San Bernardino County-owned land in the city of Ontario. The new facility will feature 102 hitting bays on three floors along with a restaurant and bar. Read more about the retail sector from our Economic Development Department. For more local news and information click here.