Retail space gluts the market as projects hit a dearth of shoppers.

The vacancy rate for downtown Los Angeles retail space has climbed in recent years, and is being exacerbated by the completion of new retail projects that are sitting either partially or totally empty, says one downtown retail real estate broker.

An estimated 16 percent of downtown L.A. retail space was vacant during the first quarter of this year, compared with 14.6 percent for all of 1991 and 10.2 percent for all of 1990, said Mark Tarczynski, retail property specialist with the downtown Los Angeles office of CB Commercial.

Some of the completed retail space standing empty includes 45,000 square feet in California Plaza Two on the corner of 4th Street and Grand Avenue. California Plaza Two recently received a temporary certificate of occupancy, Tarczynski said.

Another 7,300 square feet of retail space is sitting empty in the building at 865 S. Figueroa Street. The owners of that building received their certificate of occupancy for the space last year, Tarczynski said.

Also, the 801 S. Figueroa building is about to get a certificate of occupancy for 10,584 square feet of retail space that hasn't yet been leased, he added.

The current price of retail space varies depending on what part of downtown the space is in, Tarczynski said.

In the Central Business District, the price of retail space ranges from $45 to $65 per square foot annually, while in the South Park area it ranges from $18 to $36 per square foot annually, he said.

The Central Business District is bordered by 3rd Street, the Harbor (110) Freeway, 8th Street and Olive Street. South Park is bordered by 8th Street, the Harbor Freeway, Olive Street and the Santa Monica (10) Freeway.

Kevin McGann, a senior commercial broker with the downtown office of Cushman & Wakefield, said that, in general, retail in the eastern portion of downtown Los Angeles is having more trouble than in the western portion. Several blue-chip office tenants have migrated west of Grand Avenue, spurring a similar retailers' migration, McGann said.

Some tenants that have moved westward during the past year and a half include Japan Airlines, Northwest Airlines and Adams, Duque & Hazeltine law firm. Retail tenants that have shifted west include Brooks Bros. and Carls Jr. Restaurant, McGann said.

McGann noted that several significant events slated to occur downtown next year should have a positive impact on the area's retail business. These events include the completion of the downtown Los Angeles library, the linking of Metro Rail and the Blue Line, the renovation of Pershing Square, and the completion of the Convention Center expansion.

Both the library's completion and the Convention Center expansion should generate more traffic downtown, and thus supply retailers with more business, McGann said.

Meanwhile, the linking of Metro Rail and the Blue Line at the intersection of 7th and Flower streets should likewise generate more business for surrounding retailers. And the refurbishing of Pershing Square, a park bounded by Hill and Olive streets, and 5th and 6th streets, should make the area "a little more friendly," McGann said.

As far as specific shopping centers are concerned, 1991 sales at 7th Street Marketplace were down about 4 percent from 1990, said Rolf Kleinhans, vice president of development for Newark, N.J.-based Prudential Realty Group, the mall's developer. The 7th Street Marketplace, a 350,000-square-foot outdoor mall with 55 tenants, is 85 percent leased, Kleinhans added.