04 ATTACHMENT 2 - Laserfiche WebLink

Retail Mixed Use Market Study Update 1 January 6, 2010 1. INTRODUCTION Originally envisioned as a campus -style business park, Hacienda contains over 7 million square feet of office space. Since its construction in 1984, the vision for the park has shifted to include a mix of land uses, brought on by natural fluctuations in the real estate market and the presence of suitable infill parcels. Although office remains the primary land use, today Hacienda is also home to more than 1,500 residential units and roughly 900,000 square feet of retail space. In addition, the park gained access to the regional transit network in 1997, with the opening of the Dublin/Pleasanton BART station. As interest in sustainable, mixed -use development around transit grows, the presence of the Dublin/Pleasanton BART station has emerged as a unique asset, which could be leveraged to bring new business, development and employment opportunities to the park. In an effort to better understand the market potential in Hacienda, Strategic Economics was retained by the Hacienda Business Park Owners Association to examine the opportunities for local - serving mixed use retail in Hacienda. Strategic Economics first addressed this issue in a 2005 report, which compared retail demand generated by park residents and workers to retail supply, and made recommendations regarding tenanting mix and project design. The current study provides an update of the 2005 report, incorporating current economic and demographic data and reassessing the opportunities for mixed -use retail in the park. In both the 2005 and 2009 reports, Strategic Economics worked closely with Main Street Property Services, Inc, a real estate services firm specializing in retail development and tenanting, to develop recommendations that go beyond traditional supply and demand to reflect "real world" retail conditions. In addition, Strategic Economics met regularly with a Steering Committee composed of Hacienda property owners and site representatives, to ensure a full understanding of the opportunity sites and economic conditions in Hacienda. The first section of the current report examines the retail demand generated by Hacienda employees, residents and BART commuters. This section also includes a demographic and psychographic profile of residents in the Primary Trade Area. In the following section — the retail supply analysis — an inventory of existing and planned retail in Dublin and Pleasanton is provided, to better understand the competitive environment for new retail in Hacienda. Next, the retail opportunities section compares the results of the demand and supply sections, provides a parcel -by- parcel analysis of opportunity sites, and offers brief case studies of comparable mixed -use retail developments in Dublin and Pleasanton. Finally, based on these findings, it recommends the best location, format and tenant mix for mixed use retail in Hacienda. The final section summarizes the key findings from each section and reiterates these recommendations. -6-