To: MAYOR AND CITY COUNCIL
From: MARC WIENER, COMMUNITY DEVELOPMENT DIRECTOR
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DISCUSSION AND POSSIBLE ACTION ON THE AREAS STUDY TO IDENTIFY AND RECRUIT NEW DEVELOPMENT AND BUSINESSES TO THE ARTESIA AND AVIATION CORRIDORS AND THE CITY’S RECENTLY DRAFTED ECONOMIC DEVELOPMENT WORKPLAN
RECEIVE AND FILE THE AREAS STUDY REPORT AND PROVIDE INPUT ON THE CITY’S DRAFT ECONOMIC DEVELOPMENT WORKPLAN
EXECUTIVE SUMMARY
The City’s Strategic Plan includes Economic Vitality as a priority area with the following goals:
• Goal 1.1 Enhance the Waterfront
• Goal 1.2 Revitalize Artesia Boulevard
• Goal 1.3 Position Redondo Beach as a Destination for Business Investment
• Goal 1.4 Revitalize the Pacific Coast Highway Corridor
On December 2, 2026, the City Council authorized a $67,000 agreement with Advisors Real Estate Asset Services, CA Inc. (AREAS) to help advance the economic development and business attraction actions identified in the Artesia and Aviation Corridor Area Plan (AACAP). AREAS is a commercial real estate consulting firm that provides development services, asset and property management, and capital sourcing services across a range of property types.
One of the strategic plan objectives listed under Goal 1.3 is to present the findings of the study prepared by AREAS to the City Council. The study includes a retail void analysis, a list of parcels with potential for redevelopment and assemblage, a tenant activation strategy, and a summary of recommendations. In addition to the AREAS findings, this item provides an opportunity for staff to present the Draft Economic Development Workplan prepared by the Community Development Department and to seek input on the strategies identified in the plan.
BACKGROUND
AREAS Report Summary
The AREAS report includes a Retail Void Analysis, which is a method used in commercial real estate to identify which retail brands and categories, or services are missing from a specific trade area. Using 84 retail business categories, the analysis identified approximately 2,870 retail brands operating within the broader California market, of which roughly 1,920 brands are not currently present in the greater Redondo Beach trade area and are therefore “voided.” The results were refined to 18 target business categories selected for their alignment with the Artesia and Aviation Boulevards use/potential as a neighborhood serving, convenience-oriented, retail environment. These targeted categories include fitness, food service, personal services, daily-needs retail, and selected experiential uses.
Retailers were then organized into a three-tier framework reflecting likelihood of locating on Artesia and Aviation Boulevards. Tier 1 brands represent strong near-term opportunities, Tier 2 brands are conditionally compatible, requiring higher quality sites, and Tier 3 brands are aspirational and require more substantial changes to the corridor’s physical environment, branding, or development pattern. The attached report from AREAS identifies several brands within these tiers that could be potential candidates to open a business along the corridor. The analysis demonstrates that many voided brands, particularly within the fitness, fast-casual dining, personal services, and daily-needs categories are well aligned with the corridor’s existing characteristics and represent realistic near-term opportunities. This information helps inform City personnel and prospective real estate brokers when targeting new business tenants.
As a component of the report, AREAS also evaluated the redevelopment potential of properties along Artesia and Aviation Boulevards, with properties classified as having Very High/High Potential, Medium Potential, and Low Potential. Parcels along the western segment of Artesia Boulevard are identified as having medium potential for redevelopment, while parcels along the segment east of Vail Avenue are identified as having high to very high potential. The majority of Aviation Boulevard, with the exception of the northern end, is identified as having high to very high potential. According to the report, strong opportunities emerge where contiguous frontages exist, parking inefficiencies are greatest, assemblage potential is the strongest, and visibility and circulation advantages unite.
The list of parcels with high potential were further evaluated for likeliness of redevelopment based on landlord interest (Landlord Prospect List). AREAS gathered data and made contact with numerous landlords and businesses along Artesia and Aviation, and also considered data on properties undergoing succession change or potential mortgage default, to inform the evaluation. The study concluded that there are currently 22 Artesia parcels and 11 Aviation parcels that have a higher likelihood of being redeveloped based on ownership status.
Finally, the AREAS report includes recommendations on tenanting and activation strategies. To support these recommendations AREAS has provided case studies of other comparable areas such as Abbot Kinney Boulevard, Venice; Downtown Manhattan Beach, El Segundo Main Street, and Riviera Village. Based on these examples some of the recommendations made by AREAS include establishing a façade/tenant improvement grant program, targeting businesses within the 3 tiers identified in the report, pursuing establishing a business improvement district (BID), and focused investment in right-of-way improvements, such as sidewalk widening.
Economic Development Workplan
The Community Development Department has prepared a draft Economic Development Workplan, which has been reviewed by the City Council Economic Development Subcommittee. The Workplan identifies efforts that are currently underway along with ones that are planned for the near and medium-term future. Some guiding principles include fostering retention and growth among existing businesses while recruiting new business; favoring quality investment that improves fiscal health, jobs, services, and placemaking; and a customer-first approach that champions predictability over unnecessary oversight and discretion. The Workplan also includes the five following strategic priorities:
1. Regulatory Modernization
2. Community Development Department Business Concierge & Outreach
3. Retention, Expansion & Attraction
4. Sites, Districts & Placemaking
5. Data, Accountability & Partnerships
The majority of the efforts are currently focused on Regulatory Modernization, which includes streamlining the permitting process, updating the development standards for Artesia and Aviation Boulevards, updating the land uses/business permitting tables, modernizing the sign regulations to improve quality of signage, adopting parking flexibility tools where appropriate, and strengthening the property-maintenance standards. Other priorities are aimed at having the City take a more active role in outreach and recruitment of new businesses and future development. Staff is seeking input and feedback from the City Council and community on the draft Economic Development Workplan included as part of this report.
COORDINATION
This report was coordinated with the City Manager’s Office.
FISCAL IMPACT
On December 2, 2026, the City Council authorized a $67,000 agreement with Advisors Real Estate Asset Services, CA Inc. (AREAS) to prepare the attached report and help advance the economic development and business attraction actions identified in the Artesia and Aviation Corridor Area Plan (AACAP).
APPROVED BY:
Mike Witzansky, City Manager
ATTACHMENTS
• Study - AREAS Artesia / Aviation Consulting Services Deliverables for the City of Redondo Beach, June 24, 2026
• Plan - DRAFT Economic Development Workplan