04 ATTACHMENT 2 - Laserfiche WebLink

Retail Mixed Use Market Study Update 1 January 6, 2010 merchandise, apparel, home furnishings and electronics' vary widely, but a reasonable average for stores in this category is $400 per square foot. Average sales per square foot for grocery items is estimated at $500. Office Worker Buying Power Estimates Table 5 summarizes Hacienda office worker buying power and supportable square feet by retail category. At current occupancy levels, weekday expenditures of park employees support an estimated 123,000 square feet of retail and restaurants in the area. At stable occupancy, supportable square feet increases to 141,000 square feet, and stable occupancy at buildout will support 164,000 square feet of retail and restaurants space. Employee demand by retail category is aggregated with residential demand and described in more detail in the residential and employee demand summary section (p25). The park has experienced minimal office /R &D /flex employment growth (4.5 percent) since the completion of the 2005 study, despite the addition of 1,078,450 square feet of office /R &D /flex space. Demand estimates, therefore, are similar to those generated in the 2005 report. The lack of growth over the past 5 years reflects the current high rate of unemployment in California (12.2 percent as of October 2009") and the soft market for new office space both in the region and nationwide. In addition, this analysis employs a more conservative assumption about stable occupancy (92 percent vs. 95 percent in the 2005 study), based on a 13 -year average of historical occupancy rates in the park. In some cases, therefore, the supportable square feet of retail space under stable occupancy in the 2009 study is lower than estimated in the 2005 study. 'California Employment Development Department 'The historical average of occupancy rates is based on office occupancy in the years 1996 to 2008. -19-