The document summarizes the retail market in Livermore, California in the 4th quarter of 2010. It finds mixed signals, with a small amount of positive absorption but little activity for large spaces. Vacancy rates improved slightly but large vacancies remain. Optimism remains that planned construction starting in 2011 could boost the market, but Livermore needs more large employers to attract retailers to fill vacant spaces and continue development. Recent retail leasing transactions in Livermore are also listed.

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Retail Market Report
MARKET SNAPSHOT
Grocery Anchored Inventory: 1,232,658
Grocery Anchored Availability: 202,564
Grocery Anchored Vacancy Rate: 16.43%
Non-Grocery Retail Inventory: 681,664
Non-Grocery Retail Availability: 84,267
Non-Grocery Vacancy Rate: 12.36%
Downtown Retail Inventory: 432,758
Downtown Retail Availability: 54,646
Downtown Retail Vacancy Rate: 12.63%
Livermore Retail Inventory: 2,347,080
Livermore Retail Availability: 341,477
Treading Water or Moving Forward? Livermore Retail Absorption:
Livermore Retail Vacancy Rate:
+ 15,691
14.55%
Livermore’s Retail Market Shows Mixed Signals VACANCY RATE BY PRODUCT TYPE
The fourth quarter marked another period of positive absorption, albeit minimal.
Vacancy Rate by Product Type
Despite a few new leases signed, there seems to be little to no activity for space over
three thousand square feet. The lack of any large retailers having interest, despite dis-
counted lease rates is concerning. Livermore has yet to gain the momentum that our
Downtown 12.63%
neighboring cities have. In spite of this, Livermore continues to slowly chug along.
Is this stale pattern going to continue? The optimistic side of me says no. Developers
are back out in the market, drawing plans, and pushing forward with stalled projects.
Retail Strip Center 12.36%
The Prime Outlet was supposed to break ground April of last year. The 550,000 square
foot high-end outlet center is once again scheduled for an April ground breaking.
The city of Livermore began looking for a developer for the high density residential
project to accompany the Regional Theater project. As for the 2,000-seat performing Grocery Anchored 16.34%
arts theater, financing options have come available and the group behind the project
is proactively looking for donors.
As predicted, the fourth quarter vacancy rates did show slight improvement. That
said, there are no hard indicators pointing towards an upswing of activity in the near KEY TERMS & DEFINITIONS
future. In order to capture the retailers to back-fill the large spaces left open (i.e. the
Inventory: Total square footage of retail space in the market
former Mervyn’s, PW Market, and Prestige Furniture) and to push continued develop-
ment (i.e. Groth Bros. site), Livermore will need to attract additional large employers. Availability: Square footage that is marketed for lease which is available within 90
Without local jobs and local consumers spending money at the local level, the confi- days. This also includes sublease space.
dence for larger retailers to open shop will not exist. I remain optimistic, the summer
of 2011 could be the turning point. Perhaps the construction scheduled to begin Absorption: The change in availability from the previous quarter.
early this year will cause a domino effect in retail development and leasing. 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
and fetch a higher lease rate.
Tenant Location Square Feet Non-Grocery Anchored: Shopping centers, strip retail centers, and buildings over
Denny’s Cafe 2259 Las Positas Road 3,600 10,000 square feet that do not have a grocery anchor.
Downtown Dental 2300 1st Street 1,500
Casbah Cafe* 1717 1st Street 1,400 Downtown Retail: Storefront buildings & centers located along 1st Street and the
OrgHipChick 2075 1st Street 600 downtown core.
* - Jessica Stewart of Lee & Associates represented Lessee in transaction 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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Livermore Retail Vacancy and Rental Rates
Vacancy Rate vs. Average Asking Rate Tri-Valley Vacancy Report
$3.00 15.40%
15.22% 21.00%
$2.50 15.20% 19.00%
15.00% 17.00%
$2.00 15.00% 15.00%
Vacancy 13.00%
$1.50 14.80% 4Q10
11.00%
9.00% 3Q10
14.55% Average Asking Rate
$1.00 14.60%
(NNN) 7.00% 2Q10
5.00%
5 00%
$0.50 14.40%
$0.00 14.20%
2Q10 3Q10 4Q10
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 Avenue 2074 1st Street
LE ASEd!
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
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
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