Economic Development and Technology Committee to Review Retail Vacancies, Challenges Facing Commercial Districts

Pasadena’s Economic Development and Technology Committee, known as EDTECH, will review retail vacancy trends and broader challenges facing the city’s commercial districts during its meeting on Tuesday.

The item is an informational report to the committee and requires no action.

The presentation outlines potential strategies to support retail districts, including streamlining permitting processes, supporting small businesses, improving streetscape conditions and encouraging flexible use of commercial spaces.

The committee is expected to receive the presentation and provide feedback. The meeting is scheduled for 5 p.m. at Pasadena City Hall.

According to the presentation, the City is home to approximately 1,660 retail businesses occupying about 10.7 million square feet of retail space. The city’s overall retail vacancy rate is estimated at 5.5%, with average asking rents around $40 per square foot.

Data in the report shows that vacancy rates vary across different parts of the city. One area, which includes Old Pasadena, South Lake Avenue and the Playhouse District includes 890 retail businesses across 5.4 million square feet with a vacancy rate of 7.8% and average asking rent of $43 per square foot.

In addition, the presentation notes that the City’s retail supply is substantial compared with other regional shopping areas. Old Pasadena and the Playhouse Village together form one of the largest commercial areas in Southern California, while the South Lake corridor has a scale comparable to major retail destinations in Los Angeles.

Other areas in the City show lower vacancy rates of 3.0%, 3.8% and 4.0%.

The presentation highlights that retail vacancy is influenced by a range of factors and may not be resolved by a single policy change. It notes that some vacant spaces reflect normal tenant turnover, while others are tied to longer leasing timelines, ongoing negotiations and the cost of preparing spaces for new tenants.

According to the report, tenant improvements and buildouts can take between 12 and 24 months, and many small businesses face challenges securing the capital needed to occupy and renovate available spaces.

The report also highlights regulatory and market factors affecting retail activity. Changing consumer behavior has contributed to growth in what the presentation describes as “experiential” retail, including dining, entertainment and service-oriented businesses.

However, some of these uses may require conditional use permits or face restrictions in certain areas, which can add time and complexity to the approval process.

The report also identifies planning and development considerations that may affect vacancy levels. Earlier requirements for extensive ground-floor retail space in some districts have contributed to an oversupply of commercial space, although more recent updates to city plans have introduced greater flexibility.

Despite the challenges, the presentation points to continued retail activity across the city. Several businesses have opened in 2026, including Boot Barn, Bob’s Furniture, Escapology, Monarca Collective, Lunasia Signature, I-Mei Spa and Ry’s Poke Shack. Additional businesses, such as Mammoth Coffee Roasting, Nana’s Green Tea and Olive Young, are expected to open in the near future.