Montana Avenue Remains Retail Hub Amid City Vacancies
Local residents benefit from a thriving, walkable mix of boutiques that keeps vacancy rates lower than other city districts.
Updated on Oct. 29, 2026 in Commercial
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As of October 2026, Montana Avenue remains a retail bright spot in Santa Monica with low vacancy rates, contrasting sharply with the struggles at the Third Street Promenade. The district has become a destination for businesses displaced by the January 2025 Pacific Palisades fires.
Why it matters
Montana Avenue maintains stability by catering to local, affluent foot traffic while offering more accessible rental rates than nearby high-end shopping corridors. This neighborhood-first model provides a resilient alternative to the vacancy issues impacting larger, traditional retail zones in the city.
Montana Avenue storefronts command monthly rents of $8 to $12 per square foot, significantly lower than the $20 seen on Abbot Kinney Boulevard or the $25 to $30 range in Beverly Hills. Four of the seven currently vacant spaces on Montana are already under lease.
The players
Keetan
An independent boutique that relocated from Pacific Palisades to Santa Monica following the 2025 fires.
Community Goods
A growing brand slated to open a new tea-concept outpost on Montana Avenue.
The details
Retailers on Montana Avenue succeed by integrating independent boutiques and specialized local services designed for walkable, affluent residential access. This boutique-centric model stands in contrast to larger districts like the Third Street Promenade, which currently struggles with nearly 27% vacancy. Businesses displaced by recent regional fires, such as the Keetan boutique, have leveraged these lower entry costs and neighborhood-focused foot traffic to re-establish operations.
Timeline
January 2025: Fires impact retail districts in Pacific Palisades.
September 2025: Keetan boutique completes its relocation to Montana Avenue.
October 2026: Montana Avenue maintains a low vacancy rate relative to broader city trends.
The Home Front
Montana Avenue's retail stability marks a departure from the high vacancy rates seen at larger hubs like the Third Street Promenade. This neighborhood-centric model offers a resilient blueprint for local shopping districts facing broader commercial property market pressures.
Residents should track how new arrivals like the planned tea outpost affect neighborhood traffic and street-level accessibility. Property owners and renters in the area may notice that this focus on boutique, neighborhood-first services helps maintain the distinct property value of the local corridor.
The takeaway
Montana Avenue offers a stable, boutique-focused alternative to larger commercial centers through lower rent requirements and strong local patronage. Shoppers and neighbors can observe how this mix of services evolves as new businesses continue to fill the few remaining vacancies.
Further reading
For more on the local retail landscape, visit the Commercial section.
Source note: This article includes information reported by New York Post.
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