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Retail Mixed Use Market Study Update 1 January 6, 2010 <br /> Residential Buying Power <br /> This section estimates the retail demand generated by residents of Hacienda and the Primary <br /> Trade Area separately, and predicts demand generated under additional residential growth <br /> scenarios for the business park. Although future residential growth of the Primary Trade Area is <br /> not included in the analysis, it can be assumed that residential growth outside of Hacienda would <br /> generate additional future demand. This analysis focuses on residential growth in the business <br /> park only, in order to better assess the potential impact of new residential development in <br /> Hacienda. <br /> Methodology <br /> Current and future Hacienda household retail spending is an important source of support for park <br /> retail. Dual office employee /residents were omitted from the preceding office worker buying <br /> power analysis to avoid double- counting their expenditures and are therefore included in this <br /> section. Those residents who also work in the park spend a greater share of their total <br /> expenditures in Hacienda and are assigned a higher capture rate of total expenditures. <br /> Annual household consumer expenditures in Hacienda and the Primary Trade Area, provided by <br /> Claritas, Inc., are shown in Tables 6 and 7. Although most of the expenditures shown are for the <br /> same spending categories used in the office worker buying power analysis, there are two notable <br /> exceptions: <br /> • The residential buying power analysis includes data about Medical spending as a proxy <br /> for the potential demand for a pharmacy. This level of spending data was not available <br /> for office workers. Consequently an estimate of Medical spending was not included in <br /> the employee buying power analysis. <br /> • The Food Away from Home category includes spending on breakfast, in addition to lunch <br /> and dinner outside the home. The inclusion of breakfast reflects the availability of more <br /> detailed data regarding residential buying patterns. <br /> As in the employee buying power analysis, "Food at Horne" expenditures refer to purchased <br /> grocery items. "Various Merchandise" includes apparel, convenience items, electronics, reading, <br /> household equipment /furniture, and appliances. <br /> Unlike the office worker expenditure analysis, which provides estimates of spending near the <br /> workplace, Claritas data gives the total amount of spending by category, irrespective of location. <br /> Therefore (as shown in Tables 6 and 7) a capture rate is assigned to approximate the share of <br /> total expenditures that would likely occur within the park if a desirable range of consumer <br /> choices were present. Capture rates vary significantly by retail category and the model assumes <br /> higher capture rates for residents within Hacienda, compared to those living in the Primary Trade <br /> Area. <br /> As with the employee buying power analysis, supportable retail square feet are calculated by <br /> dividing expenditures by typical sales per square foot. Sales per square foot assumptions are as <br /> follows: $400 per square foot for Food Away from Home and Various Merchandise, and $500 per <br /> square foot for Food at Home (Grocery) and Medical products.' <br /> Like the Employee Buying Power Analysis, assumptions regarding sales per square foot by type of retail <br /> establishment and overall square footage per establishment are based on information from several sources: <br /> 2009 -2010 Retail Store Taxable Sales Estimates, prepared for the City of Pleasanton by the HDL Companies; <br /> 21 <br />