Long Beach's retail real estate market benefits from a combination that few Southern California cities can replicate: a walkable coastal lifestyle, neighborhood corridors with strong local identity, a population of approximately 466,000, and tourism traffic driven by the waterfront, the Queen Mary, and the Long Beach Convention Center. From the premium shops and restaurants along 2nd Street in Belmont Shore to the eclectic boutiques on 4th Street in Retro Row and the growing dining scene on Atlantic Avenue in Bixby Knolls, Long Beach offers retail investors a diverse range of opportunities across established and emerging corridors.
Clear House Lending provides retail property financing throughout Long Beach, including conventional commercial mortgages, SBA loans for owner-occupied retail, bridge financing for repositioning projects, and DSCR loans for investment properties. This guide covers the retail lending landscape, current rates, corridor-level analysis, and strategies for financing retail real estate in Long Beach in 2026.
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What Does the Long Beach Retail Market Look Like in 2026?
Long Beach's retail market entered 2026 in a position of stability, supported by neighborhood-level demand and limited new construction. Unlike the office sector, which faces structural headwinds from remote work, Long Beach retail has benefited from the consumer shift toward experiential spending, dining, and service-based businesses that require physical locations.
Neighborhood retail corridors remain the backbone of the market. The 2nd Street corridor in Belmont Shore features walkable retail and dining with average household incomes exceeding $158,000 within a one-mile radius and more than 24,000 people in that same radius. A newly renovated two-tenant retail property on 2nd Street closed for $9.9 million in late 2025, reflecting the premium investors are willing to pay for established coastal retail.
Retail lease rates in Long Beach vary significantly by corridor. Belmont Shore commands approximately $5.10 per square foot monthly (NNN), while emerging corridors and inland locations range from $2.00 to $3.50 per square foot. Overall retail vacancy across Long Beach sits at roughly 5.2%, well below the national average, though this varies by submarket.
The tenant mix has evolved in response to post-pandemic consumer preferences. Food and beverage operators, health and wellness businesses, personal services, and experience-driven retailers have expanded, while discretionary goods retailers and traditional national chains have contracted. This shift favors Long Beach's neighborhood-oriented retail format, where local restaurants, specialty shops, and service providers thrive on community patronage rather than pass-through traffic.
The downtown retail environment faces more complexity. While the $150 million Portico development and the 12,000-seat Long Beach Bowl amphitheater near the Queen Mary will bring new foot traffic, the elevated downtown office vacancy of approximately 31.6% has reduced the daytime population that traditionally supports downtown retail. Retail in the Pine Avenue corridor and along the Promenade has experienced higher turnover, though the residential pipeline downtown is expected to gradually rebuild the customer base.
What Types of Retail Loans Are Available in Long Beach?
Retail property financing in Long Beach spans the full spectrum of commercial lending products, with the optimal choice depending on property location, tenant quality, occupancy, and investment strategy.
Conventional Commercial Mortgages serve stabilized retail properties with 85%+ occupancy and established tenant bases. Rates range from 5.18% to 7.25% with 5 to 10 year terms and 25 to 30 year amortization. These loans work best for neighborhood strip centers with strong local tenants, NNN-leased properties with national credit tenants, and established corridor properties in Belmont Shore, Bixby Knolls, and Retro Row.
SBA Loans are an outstanding option for business owners purchasing their retail location. The SBA 504 program offers up to 90% financing with below-market fixed rates, while the SBA 7(a) program provides flexible terms for smaller acquisitions. Long Beach's vibrant restaurant, wellness, and specialty retail scene makes SBA lending an active segment of the retail market.
Bridge Loans provide transitional financing for retail properties that need repositioning, re-tenanting, or renovation. Bridge financing at rates of 7.50% to 10.50% allows investors to acquire underperforming retail centers, upgrade the tenant mix, complete renovations, and refinance once the property is stabilized.
DSCR Loans qualify based on the retail property's income rather than the borrower's personal income. DSCR programs work well for stabilized retail investments with reliable NNN lease income and adequate debt service coverage. Use our DSCR calculator to evaluate whether your target property qualifies.
Hard Money Loans offer fast closing for competitive retail acquisitions or distressed properties. Hard money financing at 9.00% to 12.75% can close in days, providing an advantage in multiple-offer situations.
What Are Current Retail Loan Rates in Long Beach?
Retail loan rates in Long Beach reflect property quality, tenant credit, lease structure, and location within the city.
As of February 2026, conventional commercial mortgage rates for stabilized retail properties range from approximately 5.18% to 7.25%. The most competitive rates are available for NNN-leased properties with national or regional credit tenants on long-term leases. A Belmont Shore retail property with a 10-year NNN lease to a strong tenant might qualify for rates at the lower end of this range.
SBA 504 loans offer fixed rates starting around 5.64% through the CDC debenture portion, making them attractive for restaurant owners, salon operators, and other retail business owners purchasing their space. SBA 7(a) rates range from 6.50% to 8.00%.
Bridge loans for retail repositioning range from 7.50% to 10.50%, with terms of 12 to 36 months. DSCR loans for retail investment properties range from 6.25% to 8.50%. Hard money loans command 9.00% to 12.75% for speed and flexibility.
Retail properties with short-term leases, below-market occupancy, or high tenant concentration risk may face rate premiums of 0.50% to 1.50% above standard pricing. Lenders view retail tenant risk differently than multifamily or industrial, where demand fundamentals are currently stronger in Long Beach.
Use our commercial mortgage calculator to estimate monthly payments for your Long Beach retail property.
Which Long Beach Retail Corridors Offer the Best Investment Opportunities?
Long Beach's retail corridors each carry distinct characteristics that drive investor returns and financing outcomes.
2nd Street, Belmont Shore is Long Beach's premier retail corridor and one of the most sought-after neighborhood shopping streets in Southern California. The walkable, coastal setting attracts both residents and visitors, with average household incomes exceeding $158,000 and a captive market of over 24,000 people within one mile. The corridor is fully built out with zero new supply, creating scarcity that supports premium rents and extremely low vacancy. A renovated retail property sold for $9.9 million in late 2025, underscoring investor demand. Financing for Belmont Shore retail is the most straightforward in Long Beach, with lenders viewing these properties as premium coastal assets.
4th Street, Retro Row has established itself as Long Beach's cultural and independent retail destination. Vintage shops, independent restaurants, creative office tenants, and specialty retailers give the corridor a distinctive character that drives strong foot traffic. Properties along Retro Row offer slightly lower entry points than Belmont Shore while benefiting from a loyal customer base and growing regional reputation.
Atlantic Avenue, Bixby Knolls is experiencing a dining and retail renaissance. The corridor has attracted acclaimed restaurants, craft breweries, boutique fitness studios, and specialty shops that serve the affluent surrounding residential neighborhood. The Bixby Knolls Business Improvement Association actively promotes the area, supporting a growing regional draw. Retail cap rates in Bixby Knolls range from approximately 5.5% to 6.5%, offering higher yields than Belmont Shore with strong growth potential.
Broadway, Downtown serves the downtown residential and worker population. The corridor faces challenges from the elevated office vacancy but benefits from the growing residential population downtown and the city's investment in streetscape improvements. Retail properties along Broadway offer value-add opportunities for investors willing to curate a tenant mix that serves the evolving downtown demographic.
Pine Avenue and The Promenade anchor downtown Long Beach's entertainment and dining scene. The Long Beach Convention Center, the Aquarium of the Pacific, and waterfront attractions drive tourism traffic. The planned 12,000-seat Long Beach Bowl amphitheater near the Queen Mary will add a significant new foot traffic driver. Retail properties in this area are positioned to benefit from the downtown waterfront transformation.
PCH and East Long Beach provide neighborhood strip retail serving the suburban residential communities of east Long Beach. These properties, typically grocery-anchored or featuring essential service tenants, offer steady cash flow with lower volatility than destination retail corridors. Cap rates tend to be slightly higher, in the 6.0% to 7.0% range.
How Does Tenant Mix Affect Retail Financing in Long Beach?
The composition of a retail property's tenant base directly impacts its financing terms, rates, and leverage availability.
Lenders evaluate retail tenants along several dimensions: credit quality, lease term, business type, and market resilience. National credit tenants on long-term NNN leases receive the most favorable treatment. Local tenants with shorter leases and less financial transparency face more scrutiny.
In Long Beach's current market, certain tenant categories are viewed most favorably by lenders. Food and beverage operators, which dominate corridors like Belmont Shore, Bixby Knolls, and Retro Row, are considered resilient because dining is experiential and resistant to e-commerce competition. Healthcare and wellness tenants (dental offices, urgent care, physical therapy, fitness studios) provide essential services that require physical presence. Service-based tenants (salons, barbershops, auto services, pet care) similarly resist online displacement.
Tenants facing more lender scrutiny include discretionary goods retailers competing with e-commerce, specialty apparel, and traditional bookstores or gift shops without strong online presence. Properties with heavy concentration in these categories may receive lower LTV ratios or higher rate premiums.
The strongest Long Beach retail portfolios blend service-based tenants, food and beverage operators, and neighborhood-essential businesses. This diversified mix creates stable cash flow that lenders value and supports favorable DSCR ratios for income-based financing.
What Should Borrowers Know About Retail Loan Underwriting in Long Beach?
Retail loan underwriting in Long Beach requires attention to several factors beyond standard commercial real estate analysis.
Lease structure and term are paramount. NNN (triple net) leases, where tenants pay property taxes, insurance, and maintenance, produce the cleanest cash flow for loan qualification. Gross or modified gross leases require the lender to evaluate the landlord's expense obligations more carefully. Lenders generally prefer weighted average lease terms (WALT) of at least three to five years, meaning the average remaining lease term across all tenants should be substantial enough to provide income security through the loan term.
Tenant rollover risk receives close scrutiny. If more than 25% to 30% of the property's rental income comes from leases expiring within two years, lenders may apply additional reserves or more conservative rent assumptions. In Long Beach's stronger corridors like Belmont Shore and Bixby Knolls, re-leasing risk is moderated by high demand and low vacancy, but downtown properties may face more challenging rollover dynamics.
Parking and accessibility matter for Long Beach retail properties. Belmont Shore and Retro Row properties often have limited parking, which is acceptable for walkable, transit-accessible corridors. Suburban strip centers along PCH or in east Long Beach are expected to meet standard parking ratios. Lenders evaluate whether parking is adequate for the tenant mix and customer base.
California's Proposition 13 affects retail property underwriting in the same way it affects all commercial assets: property taxes reset to market value upon sale. Investors acquiring long-held retail properties should model the post-acquisition tax increase, which can significantly impact NOI and debt service coverage.
How Does Long Beach Retail Compare to Other Southern California Markets?
Long Beach retail occupies a distinctive niche in the Southern California landscape, offering premium neighborhood retail at prices below many Westside and Orange County markets.
Belmont Shore's retail rents of approximately $5.10 per square foot monthly are well below Montana Avenue in Santa Monica ($8.00+), Abbott Kinney in Venice ($10.00+), or Fashion Island in Newport Beach ($7.00+), yet the corridor delivers comparable walkability, affluent demographics, and coastal lifestyle appeal. This value differential makes Long Beach retail attractive to investors seeking premium coastal retail exposure at more accessible entry points.
Bixby Knolls and Retro Row offer emerging corridor dynamics similar to what Silver Lake and Los Feliz experienced a decade ago in Los Angeles proper. The combination of independent retailers, acclaimed restaurants, and community investment creates a growth trajectory that can deliver strong appreciation alongside current yields.
Overall Long Beach retail vacancy of approximately 5.2% compares favorably to the national average and is in line with the strongest Southern California submarkets. The limited new retail supply, combined with strong neighborhood demand, positions Long Beach retail for continued stability.
Frequently Asked Questions
What is the minimum down payment for a retail loan in Long Beach?
Down payment requirements depend on the loan program. SBA loans for owner-occupied retail properties allow as little as 10% down, making them the most accessible option for restaurant owners, salon operators, and other retail business owners. Conventional commercial mortgages require 25% to 35% down. DSCR loans for investment properties typically require 20% to 35%. Properties in premium corridors like Belmont Shore may qualify for slightly more favorable leverage due to lower perceived risk.
How long does it take to close a retail loan in Long Beach?
Conventional commercial mortgages close in 45 to 60 days. SBA loans take 60 to 90 days. Bridge loans can close in 14 to 21 days for competitive acquisitions. In Long Beach's desirable retail corridors, particularly Belmont Shore where listings are rare, the ability to close quickly can determine whether an investor secures a property. Having documentation prepared in advance significantly accelerates the process.
Can I get an SBA loan to open a restaurant in Long Beach?
Yes, SBA loans are one of the most popular financing tools for restaurant owners in Long Beach. The SBA 7(a) program provides financing for both property acquisition and business equipment, while the SBA 504 program offers below-market fixed rates for property purchases. Long Beach's thriving dining scene, with strong corridors in Belmont Shore, Bixby Knolls, and Retro Row, makes the city an active SBA lending market for food and beverage businesses.
What cap rates should I expect for retail properties in Long Beach?
Retail cap rates in Long Beach vary by corridor and property quality. Premium locations like Belmont Shore trade at approximately 4.5% to 5.5%, reflecting the scarcity of available properties and the strength of the tenant base. Bixby Knolls and Retro Row properties trade at 5.5% to 6.5%. Downtown retail, which faces more uncertainty, trades at 6.5% to 8.0% or higher. Suburban strip centers in east Long Beach offer cap rates of 6.0% to 7.0% with more predictable cash flow.
How does e-commerce risk affect retail lending in Long Beach?
Lenders are highly attuned to e-commerce risk in retail lending. However, Long Beach's retail market is well positioned because its strongest corridors are dominated by food and beverage, personal services, and experiential retailers that are largely immune to online competition. A Belmont Shore property leased to restaurants and salons faces minimal e-commerce risk. A suburban strip center leased primarily to goods-based retailers would face more scrutiny. The tenant mix is the critical factor in how lenders assess e-commerce exposure.
Are there retail development opportunities in Long Beach?
New retail development in Long Beach is limited by high construction costs, lengthy permitting timelines, and the built-out nature of most desirable corridors. The most significant new retail will come as part of mixed-use developments like the Portico project downtown and the broader Downtown Shoreline Vision Plan. For investors, this supply constraint is a positive: limited new competition supports existing retail values and rents across the city's established corridors.
Contact Clear House Lending today to discuss financing options for your Long Beach retail property. Our team understands the nuances of Long Beach's diverse retail corridors and can help you structure the optimal loan for your investment.