04 ATTACHMENT 2 - Laserfiche WebLink

Retail Mixed Use Market Study Update 1 January 6, 2010 for price or product variety, and therefore would need to focus on offering a full service grocery experience, including a butcher, deli, fishmonger etc. Catering would also be an important component of the grocery anchor tenant. Similar markcts report that 40 percent of their sales are generated by catering services, primarily to local businesses. The Hacienda location, with nearly 7 million square of office space, would provide a strong competitive advantage to the catering side of the business. One example of this grocery type is the Skyhawk Market in Santa Rosa. In addition to a butcher, deli, bakery and produce department, the 10,000 square foot store includes a full - service kitchen with a wood -fired pizza oven. Seating for 70 is provided within the store, with seating for an additional 90 customers in the plaza outside. Skyhawk also has a liquor license, and offers beer and wine tastings at night and on the weekends. The market is part of a mixed -use development which includes additional retail, office space and residential units. It is also located next to Highway 12, which averages 35,000 vehicle trips per day. The owner of Skyhawk Market reports that visibility and access were among the most important factors when selecting the current location. High - end Specialty Pharmacy 3,500 —10,000 square feet A pharmacy also has the capacity to serve as a co- anchor at this location, in conjunction with the small grocer. A high -end pharmacy such as Phannaca or the Medicine Shoppe would be a good fit for the income and education levels in the surrounding trade area. These businesses, however, have been hit hard by the economic downturn and are not currently expanding. It is difficult to predict when and where expansion will continue in the future. Locating a specialty pharmacy in Hacienda, therefore, would require an extremely proactive tenanting strategy and is better suited for a later phase of the project. Most major pharmacies, such as CVS or Walgreens require a larger retail space and potentially a drive- through window, which would not be a good fit for the transit - oriented nature of the site. Restaurants 10,000 square feet Small cafes or quick - service restaurants would also be successful tenants for mixed -use retail in Hacienda. A coffee shop or juice bar would have the potential to serve BART commuters, while lunch - oriented restaurants specializing in soups, sandwiches or ethnic cuisine could draw employees from the surrounding business park. Care should be taken, however, to ensure that restaurant offerings do not compete with prepared foods served at the grocery anchor tenant. Specialty Retail 5,000 —10,000 square feet Small, nontraditional specialty retailers, such as a bicycle store, walking shoe store, travel book store, or an optical store would be a good fit for Hacienda. These stores typically serve affluent and educated residential areas, and do not compete directly with larger, budget- oriented retailers that may not carry a full range of such specialized products. Services 5,000 —10,000 square feet Small service businesses such as hair or nail salons, day spas or a green dry cleaner would serve the daily needs of local residents and workers 62