JLL tells Chino Hills council retail spending is recovering; vacancy concentrated in a few large boxes

A commercial market presentation by brokerage firm JLL told the Chino Hills City Council on Jan. 28 that local retail spending and foot traffic have largely recovered from the COVID slump, but that a handful of large vacant anchor boxes account for much of the city’s current retail vacancy.

The presentation, led by Eric Westett of JLL, said consumer spending and visits to physical stores remain strong and that many categories of retail and quick-service restaurants are growing. "For the most part, our sales are still at our retail stores," Westett said. He added that online shopping has become a complement rather than a replacement for in-person retail.

JLL reported a citywide vacancy rate near 7.9%, and said about 45% of that vacancy reflects spaces already in active lease negotiations. A significant portion of the vacant square footage—roughly 208,000 square feet—comes from a small number of large anchor spaces at centers such as Chino Commons and Crossroads, JLL said.

The presentation addressed three Chino Hills centers in detail. JLL said Costco purchased multiple parcels at the Crossroads property along the 71 Freeway to reconfigure circulation and add fueling, then negotiated leases for several spaces it also bought. Westett said the spaces immediately north of Costco’s gas station—about 60,000 square feet combined—are in final lease talks with what he described as a "major grocery store" that Costco views as complementary rather than competitive to its operations.

On other centers, JLL said new tenants are being pursued for a former Rite Aid space at Chino’s Marketplace and for anchor boxes at the Chino Hills Shopping Center. The firm highlighted incoming replacements for closed national chains: a local ethnic grocer replacing a closed discount store and a new restaurant taking the former Soup Plantation location.

Council members asked about the geographic scope of JLL’s data; Westett said most slides were national or regional context and that the firm then dials into local data for Chino Hills. Vice Mayor Jost, Council Member Marquez and others pressed for details about vacancy counts and specific leasing negotiations; Westett responded that several large vacancies account for much of the percentage-based increase and that many of those spaces are in active negotiations.

The presentation also identified tenants with high foot-traffic rankings in California—Trader Joe’s, Barnes & Noble and Costco among them—and noted that building-materials retailers have seen weaker foot traffic relative to other categories.

JLL encouraged continued engagement with owners and shared that several leases are expected to be finalized in the near term, which would materially lower the reported vacancy.

Looking ahead, JLL said the market faces limited new construction and high replacement costs, making re-tenanting and repositioning of existing shopping centers the most likely path to restoring occupied retail square footage.

For now, the firm recommended the city continue coordinating with property owners and prospective national and local tenants as lease negotiations progress. A number of council members said they would like follow-up briefings once key leases are finalized.