By Corey Costelloe
Economic Development Coordinator
Highlighting success within the economic landscape of our community
Economic Development Update
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Corey Costelloe.
Southeastern Kern County Retail Submarket Report
As Tehachapi enters the final quarter of 2022, some recent data sheds light on the availability of retail properties both in the City of Tehachapi and southeastern Kern County. Recent reports from CoStar, the City's commercial real estate service, shows the area with a 3.3% vacancy rate amongst commercial retail properties in this submarket, which includes the City of Tehachapi, the Greater Tehachapi Area, Mojave, Rosamond, Arvin and a portion of unincorporated Bakersfield. The Capital Hills area in the City of Tehachapi which sits north of Highway 58 is not included in this submarket and therefore the recent construction of a hotel and shopping center are not captured.
The 3.3% vacancy rate is under the national five-year average while retail rents have risen 3.8% over the last 12 months with the average price of $262 square-foot sitting above the region's average pricing as well. With less space and a more captive audience in smaller communities, that trend is not unexpected when compared to a larger retail metropolitan area.
The historical vacancy rate sits around 4.4% on average with CoStar projections showing just a slight increase to from 3.3% to 3.4% for the next 12 months in the submarket. Two of the most active three-star rated buildings (CoStar rankings) are in the City of Tehachapi, with four leases signed over the last 12 months taking a total of 8,600 square feet of retail space off the market.
Two of the three highest rated and highest priced-submarket properties have been sold in the City of Tehachapi in the last 12 months.
Read the full SE Kern County Market Report here: acrobat.adobe.com/link/review?uri=urn:aaid:scds:US:bd1e59f4-3c5a-3268-a1a0-012b4e4d407e
In The News: Kroger to acquire Albertson's in $24.6 billion merger of grocery giants (From Shopping Center Business)
Together, Boise-based Albertsons and Cincinnati-based Kroger currently operate a total of 4,996 stores including one in Tehachapi, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers.
Ribbon Cutting: Long-awaited Towneplace Suites brings first extended-stay option to the City of Tehachapi
The 85-room Towneplace Suites by Marriott has already hosted plenty of hotel guests in the short time it has been open. Last week officials from the City of Tehachapi, the Chamber of Commerce, Marriott and the community came together for a ribbon cutting.
Featured investment opportunity
Owners want to retire, so the highly-successful Downtown Tehachapi business Petra's Mediterranean is for sale (exchange of cuisine sale, recipes and training available). Contact LaLena Brakke-Isom for more information at (916) 844-9183.
For more Economic Development news visit http://www.liveuptehachapi.com/303/Economic-Development-News.
