The retail market in Pleasanton, California saw positive absorption and declining vacancy rates in the 4th quarter of 2010. The overall vacancy rate fell to 10.67% from 11.28% the previous quarter. Activity increased in grocery-anchored centers and downtown retail, while vacancy rates remained highest for grocery-anchored properties at 11.75%. Several new developments are planned or under construction, including a 130,000 square foot project called Pleasanton Gateway anchored by Safeway. With new projects launching in surrounding areas, the retail market in Pleasanton is expected to continue improving through mid-2011.

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Retail Market Report
Market Snapshot
Grocery Anchored Inventory: 1,295,686
Grocery Anchored Availability: 152,301
Grocery Anchored Vacancy Rate: 11.75%
Retail Strip Inventory: 585,821
Retail Strip Availability: 63,649
Retail Strip Vacancy Rate: 10.86%
Downtown Retail Inventory: 402,860
Downtown Retail Availability: 27,786
Downtown Retail Vacancy Rate: 6.90%
Activity is Up, Vacancy Declines Pleasanton Retail Inventory: 2,284,367
Pleasanton Retail Availability: 243,736
Pleasanton Retail Absorption: + 13,984
Pleasanton Continues to See Healthy Growth Pleasanton Retail Vacancy Rate: 10.67%
Throughout the year an obvious trend emerged: slow and steady growth. Another
quarter of positive absorption brought the Pleasanton market back to around pre-
Vacancy Rate by Product Type
recession levels. Lease rates continue to be depressed but we expect that to be the
new “normal”. Further signs of improvement include the development of Gateway Vancancy Rate by Product Type
Pleasanton on Bernal Road at I-680.
Main Street continued to be the center of activity. 234 Main Street was sold to the
Downtown 6.90%
group of developers behind the Tully’s and Stacey’s redevelopment. Construction
will begin on the dilapidated building in early February. Fleet Feet Sports has signed
a lease to occupy half of the 5,000 square foot building upon the completion of
construction. The Domus building continues to sit vacant with no serious suitors but Retail Strip Center 10.86%
a whirlwind of rumors continues. A sushi restaurant has signed a lease for the very
hidden space on Division Street across from Downtown Yoga and next to Yolatea.
Pleasanton Gateway will be anchored by a flagship Safeway store. In total the new Grocery Anchored 11.75%
project will offer about 130,000 square feet of prime retail space. This project is about
the same size as Waterford shopping center in Dublin. Neighboring this develop-
ment site will be an office plaza consisting of 600,000 square feet of new space.
With Dublin moving forward on the Fallon Gateway project and Livermore sched- Key Terms & Definitions
uled to break ground at the Prime Outlet site as of April 1, 2011, what about Staples Inventory: Total square footage of retail space in the market
Ranch? Hendrick’s has no plans to start construction until the Auto Industry levels
out. Stoneridge Creek, a retirement community consisting of 637 units, will break Availability: Square footage that is marketed for lease which is available within 90
ground before summer. days. This also includes sublease space.
The activity barometer suggests a continued resurge of the market. With a couple Absorption: The change in availability from the previous quarter.
large vacancies still awaiting tenants, chances are we will see further improvement Vacancy: The percent of available space based on the total inventory.
in overall vacancy through Q1 and Q2 of 2011.
Grocery Anchored: Shopping centers characterized by a grocery anchor such as
Safeway, Trader Joe’s, Lucky, or Nob Hill. These centers are often more sought after
and fetch a higher lease rate.
Recent Transactions
Retail Strip Center: Shopping centers, strip retail centers, and buildings over
Tenant/Buyer Location Square Feet
10,000± square feet that do not have a grocery anchor.
Pet Food Express 1737 Santa Rita Rd. 5,500
Fleet Feet Sports 234 Main Street 2,400 Downtown Retail: Storefront buildings & centers located along Main Street and the
Parrot Cellular 4555 Hopyard Rd. 1,800 downtown core.
Maui Wowi 4833 Hopyard Rd. 1,400
Triple Net Expenses (NNN): A lease agreement where the Tenant is responsible for
Lee & Associates maintains an up-to-date database of all available their proportionate share of taxes, insurance, maintenance and building repairs.
Triple Net Expenses are in addition to base rent.
properties and sold/leased properties.
For local commercial real estate news, insight, and gossip visit my blog! www.thestorefront.wordpress.com

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Pleasanton Retail Vacancy and Rental Rates
Vacancy Rate vs. Average Asking Rate Tri-Valley Vacancy Report
$3.00 12.50%
12.20%
21.00%
$2.50 12.00% 19.00%
17.00%
$2.00 11.28% 11.50% 15.00%
Vacancy 13.00%
$1.50 11.00% 4Q10
10.67% 11.00%
Average Asking Rate 9.00% 3Q10
$1.00 10.50% (NNN) 7.00% 2Q10
5.00%
5 00%
$0.50 10.00%
$0.00 9.50%
2Q10 3Q10
Exclusive Lee Listings
Available For Lease Available For Lease Available For Lease
2,240± Square Feet 13,516± Square Feet 3,000± Square Feet
511 Main Street Bernal Retail Center 3724 Stanley Blvd.
Lee & Associates - Your Commercial Real Estate Connection
Since 1979, our seasoned, motivated shareholders and professionals have been offering comprehensive quality service nationally and locally in a pro-active manner.
We develop customized solutions for all of your real estates needs through our market-to-market knowledge in all property types. Our unique business model and
extensive experience has helped us become one of the largest commercial real estate providers in the United States.
Services Offered:
Market Value Analysis Building Optimization Investment Sales
Site Search Landlord Representation Tenant Representation
RETAIL OFFICE INDUSTRIAL
Jessica is experienced in both Tenant and Landlord
representation and has been active in the Easy Bay
commercial real estate market since 2006. Prior to joining
Lee & Associates in 2009, Jessica worked for Aegis Realty
5890 Stoneridge Drive, Suite 210 Partners in Oakland. As a retail specialist, she has worked
Pleasanton, CA 94588 with a number or local restaurants, retailers, and landlords in
(925) 460-6200 sales and leasing of shopping centers and storefronts.
(925) 460-6210 Jessica Stewart For the most up to date market information follow Jessica on
www.lee-associates.com Retail Specialist her blog www.TheStrorefront.wordpress.com.
* The property information/detail contained herein has been provided by the seller/lessor or has been obtained from other sources believed to be reliable,
and Lee & Associates - East Bay, Inc. has not independently verified such information’s accuracy. Lee & Associates - East Bay, Inc. makes no representations,
guarantees, or express or implied warranties of any kind regarding the accuracy or completeness of the information provided herein nor the condition of the
property and expressly disclaims all such warranties, including but not limited to the implied warranty of suitability and fitness for a particular purpose. Buyer/
Lessee should perform its own due diligence regarding the accuracy of the information upon which buyer/lessee relies when entering into any transaction
with seller/lessor herein. Further, the information provided herein, including any sale/lease terms, are being provided subject to errors, omissions, changes of
price or conditions, prior sale or lease, and withdrawal without notice.
* CoStar sourced for portion of market data 2