Retail Commercial Real Estate Report - 3rd Quarter 2010, Livermore CA

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Retail Market Report
MARKET SNAPSHOT
Grocery Anchored Inventory: 1,232,658
Grocery Anchored Availability: 201,325
Grocery Anchored Vacancy Rate: 16.33%
Non-Grocery Retail Inventory: 681,664
Non-Grocery Retail Availability: 89,419
Non-Grocery Vacancy Rate: 13.12%
Downtown Retail Inventory: 432,758
Downtown Retail Availability: 66,424
Downtown Retail Vacancy Rate: 15.34%
Livermore Retail Inventory: 2,347,080
Livermore Retail Availability: 357,168
No News Is Good News Livermore Retail Absorption:
Livermore Retail Vacancy Rate:
- 4,623
15.22%
Livermore Retail Market Remains Flat Vacancy Rate by Product Type
The 3rd quarter of 2010 showed no real signs of a further weakening market, nor shifts
to indicate a strengthening of the market. We did notice an increase in tour activity
and a confidence in Tri-Valley Market that we have not seen in a long time. August
proved to be a troubling month and seemed to take away some of the recently gained
confidence. We are far from being out of the woods and the question still remains of
whether commercial foreclosures will begin to trouble the retail market.
The stale market has created opportunity for existing businesses to upgrade their loca-
tion. This quarter saw the relocation of Classic Images, Up Town Girls, and Tri-Valley
Bank all of which have found more visible locations along First Street. Large vacancies
such as the former Mervyn’s space and PW Market have yet to find a suitor. It is rumored
that Chipotle is in the market and seeking a Livermore location. We saw one building
sale in downtown this past quarter and I expect that will be the trend over the next
quarter.
At this time we anticipate the trend outlined above to continue. While we will likely
have few bumps in the road, I anticipate vacancy numbers and lease rates will con- KEY TERMS & DEFINITIONS
tinue to show slight improvement over the fourth quarter. I do not expect a complete
Inventory: Total square footage of retail space in the market
stabiliztion until mid 2011 in the retail sector. Job growth will be paramount of getting
this started, and if we are able to get job growth moving in the Tri-valley, the Livermore Availability: Square footage that is marketed for lease which is available within 90
market will improve at a faster rate. Our retailers need consumers to begin spending days. This also includes sublease space.
again and until that happens, look for our market to remain stagnant. For now be
encouraged by the small improvements the market is making. Absorption: The change in availability from the previous quarter.
Vacancy: The percent of available space based on the total inventory.
Grocery Anchored: Shopping centers characterized by a grocery anchor such as
Recent Transactions Safeway, Trader Joe’s, Lucky, or Nob Hill. These centers are often more sought after
Tenant Location Square Feet and fetch a higher lease rate.
Classic Images 1986 2nd Street 2,100
Non-Grocery Anchored: Shopping centers, strip retail centers, and buildings over
Up Town Girls* 2145 1st Street 2,100
10,000 square feet that do not have a grocery anchor.
Subway Piazza Robino 1,400
Caratti Jewlers** 2056 1st Street 1,982 Downtown Retail: Storefront buildings & centers located along 1st Street and the
* - Lee & Associates represented transaction downtown core.
** - Building purchase
Triple Net Expenses (NNN): A lease agreement where the Tenant is responsible for
their proportionate share of taxes, insurance, maintenance and building repairs.
Lee & Associates maintains an up-to-date database of all available properties and sold/leased properties. Triple Net Expenses are in addition to base rent.
For more local commercial real estate news, insight, and gossip visit me at www.thestorefront.wordpress.com

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QUARTER IN REVIEW
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Livermore Retail Vacancy and Rental Rates
Vacancy Rate vs. Average Asking Rate Tri-Valley Vacancy Report
Exclusive Lee Listings
FOR SALE FOR LEASE FOR LEASE
3,000± Square Feet Available 2,290± Square Feet Available 600± Square Feet Available
260 N. “L” Street 39 S. Livermore Ave. 2074 1st Street
Lee & Associates - Your Retail 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
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
Partners in Oakland. As a retail specialist, she has worked
with a number of local restaurants, retailers, and landlords in
5890 Stoneridge Drive, Suite 210
sales and leasing of shopping centers and storefronts.
Pleasanton, CA 94588
(925) 460-2600 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, includ-
ing any sale/lease terms, are being provided subject to errors, omissions, changes of price or conditions, prior sale or lease, and withdrawal
without notice. 2
* CoStar sourced for portion of market data