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Retail Mixed Use Market Study Update 1 January 6, 2010 Existing Retail Outsiide Hacienda that Serves Hacienda's Primary Trade Area As described in the retail demand section, retailers located in Hacienda will serve residents and workers in Hacienda, but also the surrounding neighborhoods & beyond, depending on the specialty of the retail. This section describes existing retail in areas surrounding Hacienda that serves this same trade area and could compete with Hacienda retailers. Neighborhood and community retail centers are shown on Map B and detailed in Tables 11, 12 & 13. The description of supply includes both Pleasanton and Dublin centers, given Dublin's immediate proximity to Hacienda and the trade area's reach into Dublin .' Most of the more recent (i.e. 1999 and later) local- serving retail development is located in Dublin, as Dublin has received the lion's share of population growth in the area and had numerous development opportunity sites near 1 -580, spurring new retail development. From 2000 to 2009, the city's population grew by approximately 60 percent'. to over 43,000 residents. With this level of' growth, retail developers will continue to pursue new projects along the I -580 corridor to serve anticipated growth (see Pipeline Projects, pg 39). Neighborhood - serving Centers This section describes neighborhood retail centers outside Hacienda that also serve households within the PTA. Centers are divided into those with a traditional supermarket anchor, and those without. In addition to the centers discussed below, there is a cluster of free - standing retail around the intersection of Hopyard Road and Owens Drive, bordering the northern west -side entrance to Hacienda. As detailed in Table 10, the majority of the approximately 13 outlets in this area are restaurants, both quick service and sit -down, with a mass market orientation. Non Grocery- Anchored Centers Neighborhood retail centers without grocery anchors include Santa Rita Square, Hopyard Village, Mission Plaza, Valley Plaza, Almond Center, Dublin Crossroads, Shamrock Village, Dublin Corners, and the ground floor retail in the new Tralee mixed use project. Non grocery- anchored centers are detailed in Tables 11, on pg 34. With the exception of Dublin Crossroads and Tralee, these centers date from the 1980s and prior. Rents and vacancy rates at these older centers vary widely, from $1.65 -$1.70 triple net per square foot and 8 percent vacancy at Mission Plaza to $2.50 -$2.75 triple net per square foot and 40 percent vacancy at Almond Center. Generally, higher rents correlate with higher vacancy rates. Given the high vacancy rote at those centers asking higher rents, it appears the true market rate for older strip center retail is below $2.00 per square foot. Just across I -580 from the Hacienda's northwestern corner are two recent projects including neighborhood- oriented retail. Built in 2006, Dublin Corners is a 46,000 square foot neighborhood shopping center with chain restaurants, services, retail and a coffee shop. In September, 2009, when this market research was performed, the triple net rental rate per square foot was $3.00 and the project had 5,493 vacant square feet, or 12 percent vacancy. Adjacent to While the 1 -580 limits access, households living off of the major north /south arterials (i.e. Tassajara Road, Hacienda Drive & Hopyard Road) may find stores on the opposite of 1 -580 more convenient. 'California Department of Finance website; October 29, 2009 32