Retail space in part of L.A. commands prime rates: market lease rate comparisons show surprising results.Lackluster sales have caused retailers to close shops throughout Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, . But in densely populated East and South Central Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , shopping center shopping center, a concentration of retail, service, and entertainment enterprises designed to serve the surrounding region. The modern shopping center differs from its antecedents—bazaars and marketplaces—in that the shops are usually amalgamated into owners have few vacancies and are charging higher lease rates than their counterparts in upper-middle-class neighborhoods. East Los Angeles East Los Angeles, uninc. city (1990 pop. 126,379), Los Angeles co., S Calif., a residential suburb of Los Angeles, in an industrial area. It has a large Mexican-American population. There is a performing arts center and a cultural center. A junior college is there. , Compton, Carson and Watts don't have snob appeal snob appeal n. Qualities that seem to substantiate social or intellectual pretensions. like Encino and Toluca Lake, but they have customers. They don't make as much per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. as their upper-middle-class neighbors, but East and South Central Los Angeles residents typically have larger families and live closer together than San Fernando Valley San Fernando Valley Valley, southern California, U.S. Northwest of central Los Angeles, the valley is bounded by the San Gabriel, Santa Susana, and Santa Monica mountains and the Simi Hills. residents do. Profit-hungry retailers are paying up to twice as much to rent shop space in East and South Central Los Angeles as they do in the San Fernando Valley, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. brokers' figures. Unlike the San Fernando Valley and West Los Angeles
For example, in East Los Angeles, 63,000 residents live within a one-mile radius of the intersection of Atlantic and Gage avenues; 290,000 residents live within a three-mile radius of the same intersection and 793,000 live within a five-mile radius, said Richard Heller, a leasing agent with Watt Commercial Development Corp., a subsidiary of Santa Monica-based Watt Industries Inc. South Central Los Angeles has 39,491 residents living within a one-mile radius of the interchange of the Harbor Freeway and Imperial Highway; 308,815 within a 3-mile radius and 948,891 within a 5-mile radius, according to data compiled by West Los Angeles-based Urban Decisions Systems Inc. Demographer Evan Cole said the figures are based on data compiled in the 1990 U.S. Census. By contrast, within one mile of the intersection of Interstate 405 and Ventura Boulevard in the San Fernando Valley, there are just 20,797 residents, 139,852 within a 3-mile radius and 399,103 within a 5-mile radius, according to Urban Decisions. Watt has two retail centers in East Los Angeles, and two in South Central Los Angeles. Heller reported all four are virtually full. Outside the neighborhoods, Heller said retail vacancy is higher because security is not as tight. David Kato, a retail broker with Montebello-based Legaspi Cos. a real estate brokerage, said East Los Angeles' hottest retail pockets run along Whittier Boulevard from Soto Street West to Interstate 5, along Brooklyn Avenue and along the 1.5-mile stretch of Whittier Boulevard from the Long Beach Freeway to Gerhart Avenue. Retailers in the three neighborhoods typically pay $2.25 per square foot per month for their shop space, Kato said. "The other types of retailers that are doing well are the mom-and-pop shops. Twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights. 2. ago they were owned by Jewish and Hispanic families. Now they are dominated by Koreans, Middle Easterners and Hispanics," Kato said. Retailers paying the high East Los Angeles rents have learned how to sell to the Hispanic market. "McDonald's and Jack-in-the-Box do well in the neighborhood. The mistake retailers make is in thinking that Hispanics don't have any money to spend," Kato said. Hispanic neighborhoods support more bridal and Western ware stores than predominantly Anglo neighborhoods. They also spend less money advertising. "Shop owners develop a clientele and since many Hispanics are Catholic, they spend a lot on clothing for weddings and other church-related events such as baptisms and the girls' 15th birthday parties," Kato said. Comparing the lease rates between middle- to upper-middle-class San Fernando Valley and East Los Angeles, Zugsmith-Thind senior marketing consultant Liz Evans said retailers can lease space along San Fernando Valley's Ventura Boulevard for as little as $1 per square foot per month. On top of the low lease rate, Evans said the tenants can get up to two months free rent each year. East and South Los Angeles South Los Angeles is the official name for a large geographic and cultural area lying to the southwest and southeast of downtown Los Angeles, California. The area was formerly called South Central Los Angeles, and is still sometimes called South Central. landlords are cashing in on their base rents and on the percentages of their gross sales Gross Sales A measure of overall sales that isn't adjusted for customer discounts or returns, calculated simply by adding all sales invoices, and not including operating expenses, cost of goods sold, payment of taxes, or any other charge. that retailers pay them as part of the lease agreement. Office, industrial and research space lease rates usually are quoted on a per-square-foot-per-month basis. In the retail industry, lease rates also are quoted on a per-square-foot, triple net basis. This means the tenant pays the flat rent, plus a percentage of the upkeep for the common area, security, utilities and property taxes. In addition, retail tenants pay landlords a percentage of their gross sales. If a shopkeeper pays $40,000 minimum per year to |
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