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Retail Mixed Use Market Study Update 1 January 6, 2010
<br /> Table 17: Net Retail Supply and Demand in Hacienda, by Type
<br /> Supply Demand Net Demand tow Net High Net
<br /> Growth Demand Growth Demand
<br /> Food Away from Home 73,121 61,762 - 11,359 71,339 -1,782 81,729 8,608
<br /> Food at Home 8,600 54,739 46,139 63,901 55,301 71,339 62,739
<br /> Medical hest. as 3,000 15,097 12,097 17,843 14,843 19,673 16,673
<br /> component of Walmart)
<br /> Various Merchandise 281.819 129,775 - 152,044 150,400 - 131,419 170,616 - 111,203
<br /> Source: Strategic Economics, 2009.
<br /> The results of these analyses should be considered alongside of the demographic profile of
<br /> households in Hacienda's Primary Trade Area, the types of retail site opportunities in Hacienda,
<br /> and the currently evolving nature of retail development. As discussed in Section II, households in
<br /> Hacienda's Primary Trade Arca are largely affluent and educated. The current range of restaurant
<br /> types in Hacienda likely does not capture many of the higher end meals eaten out by PTA
<br /> households, who go elsewhere for those types of dining experiences. New restaurants that
<br /> provide different eating opportunities, especially gourmet or locally produced /organic /natural
<br /> foods, should thrive given the right ambience and physical setting. Furthermore, new restaurants
<br /> such as these should not negatively affect the existing restaurants in Hacienda, given their
<br /> different orientations.
<br /> The same is true of the general merchandise shopping opportunities in Hacienda: Walmart does
<br /> not serve all of the daily /weekly shopping needs of the affluent households in Hacienda's Primary
<br /> Trade Area. It derives many of its customers from traffic on I -580 and does not cater to the
<br /> particular needs of local households. Retailers who target wealthier, more educated households,
<br /> like those in the Primary Trade Area, should find a niche in Hacienda.
<br /> It should also be noted that the demand estimates used in this report are conservative. Due to
<br /> limitations in data, these estimates do not include demand generated by transit users, non -office
<br /> employees in the park and future residential growth outside of the Primary Trade Area. Each of
<br /> these sources can be expected to produce demand for additional retail development in the park.
<br /> The next section, Opportunity Sites in Hacienda, discusses the types of development
<br /> opportunities in Hacienda n detail. Even though the demand/supply analysis shows support for a
<br /> full- service grocery and conventional drugstore in Hacienda, it is unlikely that the sites available
<br /> could attract such retailers.. given that chain supermarkets and drugstores usually require frontage
<br /> on roads with at least 30,000 average daily trips. The pent -up demand for groceries and drugstore
<br /> goods is substantial, however, and points to a market opportunity for smaller specialty groceries
<br /> and pharmacies /natural health centers that appeal to select customers based more on differentiated
<br /> goods, higher quality and service, rather than strict convenience.
<br /> Finally, the existing retail centers in Hacienda are 14 to 23 years old, and all are strip or stand-
<br /> alone large format centers. None of them have a physical environment that creates a shopping
<br /> experience. As the retail development supply for the area shows (see Pipeline Supply, pg 39),
<br /> households with the demographic characteristics of Hacienda's PTA want opportunities to do
<br /> daily /weekly needs shoppi ig in places with ambiance and character.
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