Open Air Retail Megadeals Signal Major Investment Resurgence for Los Angeles Market

Los Angeles retail investments soar in early 2026 as open air malls drive a 67 percent increase in sales volume, led by the $530 million Victoria Gardens deal.

By: AXL Media

Published: Apr 14, 2026, 8:14 AM EDT

High Value Transactions and Market Momentum

The first quarter of 2026 has been defined by three primary "megadeals" that suggest a robust appetite for large-scale retail assets. Beyond the headline $530 million sale of Victoria Gardens to Redwood West and Panattoni, the market saw Cedars-Sinai acquire the Beverly Connection for $270 million and Edens purchase the Long Beach Exchange for $135 million. This momentum follows a strong 2025, where the Los Angeles metropolitan area saw a 29.9% year-over-year increase in single-property retail transactions. By the end of Q1 2026, the year-over-year sales volume by dollar amount was nearly 67% higher than the same period in 2025, signaling an accelerated pace of capital deployment.

Strategic Shift Toward Experience-Driven Retail

The driving force behind these nine-figure deals is the proven resilience of open-air lifestyle centers compared to their enclosed counterparts. Asset managers are specifically targeting properties that function as community gathering spots rather than simple shopping corridors. For instance, Redwood West has committed to an additional $50 million investment for property upgrades at Victoria Gardens, focusing on enhancing public spaces, storefront consistency, and social programming. This "future-proofing" strategy aims to capture a diverse range of demographics by providing fresh tenant offerings and interactive environments that online platforms cannot replicate.

Competitive Dynamics and Operational Efficiency

From an investment perspective, open-air centers offer a distinct competitive advantage over indoor malls through lower capital expenditure requirements. Operational costs for heavy infrastructure, such as massive HVAC systems and complex roofing for enclosed structures, are significantly reduced in outdoor formats. Furthermore, data from Placer.ai indicates that open-air malls were the only retail type to see consistent month-over-month foot traffic growth throughout the first quarter of 2026, rising 5.1% overall. This foot traffic is increasingly characterized by high-frequency weekday visits from affluent families, making these assets highly attractive to institutional "bid catchers" looking for stable, long-term yields.