Pasadena Retail
Follow Up
Economic Development & Technology Committee
August 18, 2026
2 Supporting Retail Health
Retail occupancy is influenced by many factors. The following action steps prioritize the areas where the City can have the greatest impact on supporting retail health.
Common Industry Assumptions
“That space has been vacant forever. Nothing’s happening.” “If landlords are penalized, vacancies will disappear.” “If rent goes down, businesses will fill vacancies.”
3 The Retail Iceberg
Vacancy is a complex market
issue
• Some vacancies reflect normal
tenant turnover
• Leasing often involves long
timelines and behind-the-scenes
negotiations
• Retail viability depends on
consumer demand, not just rent
• In some areas, retail supply
exceeds demand
• Many spaces require significant build-
outs, many small businesses are
undercapitalized
• Time to market is influenced by
permitting and entitlements
• Buildouts can often take 12-24 months
• Foot traffic, access, and visibility
influence business success
• District conditions play a role in
viability
Staff reviewed strategies and best practices and identified three action areas to further support commercial occupancy.
This work aligns with E conomic Development Strategic Plan principles
2.0 - Invest in Neighborhoods & Small Business and
0.0 - Build Systems & Partnerships for Success
4 Retail Occupancy Action Framework
→
Improve
Pathways
to Occupancy
◉
Strengthen
Market
Intelligence &
Partnerships
$
Support Business
Investment
5 Improve Pathways to Occupancy
Plan Check Review Process –
6 Improve Pathways to Occupancy
Permit Center Review Activity –
Why? - Reducing the time, cost, and uncertainty of opening can improve the business experience and help owners occupy space more smoothly.
Items Completed
• Streamline the development review process:
o C ompleted Specific Plans (FOOG underway and E ast Pasadena remaining) o R evised Predevelopment Plan R eview process
o U pdated design review & sign review thresholds
o Restaurants with alcohol sales, walk - up windows & outdoor dining o V ariances for Historic Resources
o Entitlement extensions
• Simply development standards :
o Standardized parking requirements
o A daptive R euse Ordinance & R & D Ordinance
o Objective D esign Standards for urban mixed- use
• Permit C enter Improvements :
o Permit Tracking, Plan Check & Customer Queuing Programs o E xpress permits, online submittals & payments
7 Improve Pathways to Occupancy
→
8 Improve Pathways to Occupancy
Items Underway
• Zoning Code Updates:
o Master Permitted U se Matrix –
R eview list of permitted uses & definitions
o U pdate the A lcohol Overlay D istrict
• Plan C heck R eview Improvements :
o Restaurant TIs –
A B 671 requires 20 business days for initial reviews and 10 business days for rechecks (City already in compliance) Staff goal to reduce to 15 and 5 business days
o All TIs –
238 last year and 171 this year (to date)
R eview times reduced from 131 to 95 calendar days ( - 27% ) o All Multi- D epartment R eviews –
2,979 last year and 1,568 this year (to date)
On- time reviews increased from 86% to 89%
9 Improve Pathways to Occupancy
Items Proposed
• Ground Floor Commercial Requirements:
o R eview recently approved Specific Plan for effectiveness Qualifying uses, applicable corridors & minimum commercial depths • E xpanded B usiness C oncierge:
o F l ag past- due plan checks
o Continue trouble shooting projects that are in the process o Work closely with City Council L iaisons and business community o Function as a hub for cross - department project coordination o D evelop business - friendly guidance materials for tenant improvements • Performance Metrics :
o U pdate and track performance standards for different departmental reviews • C A L E D Permit Streamlining A cademy:
o Participate for fall 2026
Why? - Better information helps the City understand market dynamics and proactively facilitate connections among businesses, developers, and property owners.
Continue
• Track chronically vacant properties
• Conduct Commercial District Needs Assessments
• Maintain broker and property owner relationships
Expand
• Convene a Commercial Property Owner & Broker Forum, Fall 2026 • Attend International Council of Shopping Centers conference, Sept. 2026 • Build property-level commercial inventory in Bludot
Explore
• Commercial occupancy cost analysis
• Catalytic site & market opportunity analysis
10 Strengthen Market Intelligence & Partnerships
◉
Why? - Connecting businesses with technical assistance, financing, and other resources can help make projects more feasible and support long- term investment.
Continue
• Business attraction and retention services
• Referrals to financing and 1:1 service providers
• Partnerships with business development organizations and PBIDs • Connections with owners of properties feasible for adaptive reuse Expand
• Grow programs and partnerships with Small Business Development Center, Women’s Business Center, LEEAF– e.g. Procurement Accelerator • Implement corridor-specific strategies informed by CDNA (Sep. 2026) • Expand targeted business recruitment
Explore
• Tenant improvement funding assistance
• Additional funding partnerships and grant opportunities 11 $
Support Business Investment
Market Outcomes
• Citywide retail occupancy
• Retail occupancy by PBID
• Number of chronically vacant properties (5+ years)
• Number of new business openings
Business Experience
• Average permit turnaround time for tenant improvements • Average plan check review time
• Number of businesses assisted through concierge services Business Development
• Number of broker/property owner engagements
• Number of recruitment proposals or site packages sent • Number of prospect meetings
• Number of Commercial properties inventoried in Bludot 12 Potential Performance Measures
13 Policy & Program Considerations
Potential Action Staff Direction / Funding
Improve Pathways to Occupancy
Continue with existing resources
• CALED streamlining academy, Fall
2026
Strengthen Market Intelligence &
Partnerships
Continue with existing resources
• Broker Forum, Fall 2026
• ICSC Conference, Sep. 2026
• Complete CDNA, Sep. 2026
• Build Bludot property inventory, Oct.
2026
Support Business
Investment
Continue with existing resources and
partnerships
→
◉
$
14 Potential Action Staff Direction / Funding
Commercial Occupancy Cost
Analysis Future funding required
Catalytic site & market
opportunity analysis Future funding required
Implement corridor-specific
CDNA projects & partner
programs
Future funding required
• Complete CDNA, Sep. 2026
Tenant Improvement Funding
Assistance Future funding required
Commercial Vacancy Registry Not recommended at this time Commercial Vacancy Tax Not recommended at this time
$
◉
◉
$
Policy & Program Considerations
End of Presentation
Thank you!