04 ATTACHMENT 2 - Laserfiche WebLink

Retail Mixed Use Market Study Update 1 January 6, 2010 Existing Retail in Hacienda Retail within Hacienda consists of suburban -style neighborhood strip centers with a very local orientation, and community centers with larger stores that serve the greater City, as well as drawing traffic from Interstates 580 and 680. These centers are detailed in Table 10 on page 31. Neighborhood- serving Centers The most basic retail forrnat is the neighborhood shopping center, often referred to as `strip centers,' providing convert ent daily needs shopping to a local market. Neighborhood centers are often anchored by a grocery store or a combination of grocery and drug store. Minus a grocery anchor, strip centers tend 1 0 contain less shop space and are tenanted with a variety of smaller local - serving businesses. Typically these centers range from 30,000 (with no groccry anchor) to 100,000 square feet with a grocery store or grocery/drug combination. Gateway Square (171,000 square feet), Crossroads Center (54,082 square feet), and Hacienda Plaza (31,749 square feet) are the three neighborhood strip centers within the park. The centers date from the mid- 1980s to early 1990's when residential development peaked in Hacienda, and the growing office worker population fueled the demand for ancillary retail and services. Currently, existing leases at Hacienda strip shopping ccnters range from $1.50 to $2.00 on a triple net basis. Gateway Square and Hacienda Plaza have vacancy rates of 9 and 13 percent, respectively, while Crossroads Center has a total of 13,422 square feet vacant or a 25 percent vacancy rate. These vacancy rates are higher than in 2005, when Strategic Economics previously evaluated the retail supply in the area. This increase reflects the downturn in general economic conditions, as well as the aging of the space. Strip center retail within Hacienda is predictably oriented toward the on -site office workers, with a range of eating options, from full- service sit -down restaurants to delicatessens, to fast food restaurants. Dry cleaners, personal services, and medical offices are also typical tenants. Less prevalent but also located in these centers are stores that primarily target local residents, such as Kelly -Moore Paints, Huntington Learning Center and MMM Carpets. Community- serving Centers Community centers are larger and have a greater trade area than neighborhood centers. Some community centers have grocery stores, while many focus on other retail formats, such as discount department stores and other off -price goods in the categories of sports equipment, books, home improvement, apparel, or electronics. Within Hacienda, on the northern edge adjacent to Interstate 580, Metro 580 and adjacent large format retailers has approximately 280,000 square feet of retail. This community center has national chain tenants such as Borders, Kohl's, Payless Shoe Source, Sport Chalet and Radio Shack. Adjacent to the Metro 580 Center is a free- standing WalMart store and a MacDonald's. A Red Robin Restaurant, as well as several independent restaurants, are located in Metro 580 and likely attract some office worker clientele. 30