q2 vacancy rates reach lowest level in 12 months ......offers laser hair removal, laser tattoo...
TRANSCRIPT
Walnut Creek Downtown
Retail Market OverviewSecond Quarter 2018
Q2 Vacancy Rates Reach Lowest Level in 12 Months
Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018
Retail Area Total SF Vacant SF Vacancy Rate
Broadway Plaza 942,653 3,742 0.4%
Historic Downtown 574,950 62,380 10.8%
West of California 200,710 11,886 5.9%
Plaza Escuela/Talbots 170,835 16,528 9.7%
Target 141,558 0 0.0%
East of Broadway 118,595 0 0.0%
Olympia Place 105,332 0 0.0%
The Corners 96,354 0 0.0%
North of Civic 99,668 0 0.0%
Main Street Plaza 79,378 17,735 22.3%
South of Newell 62,319 0 0.0%
Newell Promenade 75,457 9,219 12.2%
2,667,809 121,490 4.6%
1
5
9
2
3
10
4
8
7
11
12
6
Retail Trade Areas5
9
2
3
10
4
1
87
11
6
12680680
Q1 2018: Downtown Walnut Creek Ends Q2 with Lowest Vacancy Rates in 12 MonthsIn the second quarter of 2018, Downtown Walnut Creek vacancy rates decreased once again. Overall vacancy reached 4.6% during Q2 – the lowest level in twelve months.
Retailers such as Bonobos, Tempurpedic, Laser Away, and, Sweetwater’s Coffee & Tea have signed leases in Q2 2018.
Bonobos, a men’s clothing store equipped with personal stylists, moved into the old location of Skin17, in Broadway Plaza.
Tempurpedic, a popular mattress stores, signed a lease at N California Blvd. Tempurpedic has expanded all over the country, but this is the store’s only location in Walnut Creek.
LaserAway relocated from Locust St. to the new mixed-use Lyric. LaserAway offers laser hair removal, laser tattoo removal, facials, and more.
Additionally at Lyric is Sweetwater’s Coffee & Tea, collectively absorbing 2,500 SF of retail space. This is the first California location, and will add to the diverse choice of cafes available in the area.
Mangosteen, a new Vietnamese restaurant will also be highlighting Walnut Creek’s diverse choices, taking over the location of Kanishka’s Gastropub on Bonanza. Also new is Roll House, a new Japanese restaurant moving in to the former Main Street Deli on Main Street.
Downtown Walnut Creek retail occupancy rates remain healthy, although additional retail inventory is constantly coming to market. Underutilized retail assets are being repurposed in the Historic Downtown, such as the former N. California McDonald’s. As projects such as 1380 N. California and The Lyric continue to break ground, the Historic Downtown will continue to adapt to the evolving Downtown Walnut Creek market.
Net absorption ended Q2 2018 at 11,663 SF, and vacancy in Historic Downtown north of Mt. Diablo Blvd decreased from 11.4% to 10.8%. The Historic Downtown’s share of overall vacancy remained stable in Q2 2018, carrying over 51% of the overall market from Q1 into Q2. Vacancy rates in the Historical Downtown have continued to rise since Q3 2016, primarily due to an increase in retail shops moving into either smaller or larger locations to support their store.
0%
1%
2%
3%
4%
5%
6%
0
20,000
40,000
60,000
80,000
100,000
3.3 3.3 3.4 3.1 3.1 3.8 4.8 5.2 4.6 4.6 5.4 5.1 4.8 4.6
Overall WC Downtown Vacancy Rate
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2015 2016 2017 2018
Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018
Walnut Creek’s Retail Market
The Walnut Creek retail market is the
premier shopping destination in the
East Bay and home to a wide variety of
premium branded retailers. Tiffany & Co.,
Neiman Marcus, Nordstrom, Coach, Crate
& Barrel, Banana Republic, Talbots, Apple
and numerous other best-of-class retailers
serve the entire East Bay market from stores
located in this unique, open air retail landscape
that mixes successful restaurant, retail and
entertainment destinations.
Downtown Walnut Creek offers a rare mixture
of newer retail centers and an historic shopping
district that blend seamlessly.
$140
$120
$100
$80
$60
$40
$20
$0
Broa
dway
Pla
za
Hist
oric
Dow
ntow
n
Subu
rban
Wal
nut C
reek
Rental RatesKey Findings from the Retail Sector
� Overall vacancy decreased from 4.8% to 4.6% during Q2, the lowest
vacancy in one year.
� Upscale thrift store, ThredUp, has relocated from the former H&M
space to a smaller location on Main Street.
� The popular clothing store Free People moved from its old location
on Olympic Boulevard to a larger space near Broadway Plaza.
� Footwear store Vans has taken the place of the old Free People on
Olympic Blvd.
� The first California opening of Sweetwater’s Coffee & Tea has under-
gone construction at the Lyric mixed use project.
� Large casual dining vacancies continue to plague the Historic Down-
town market.
Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018
Vacancy Rate vs Available (SF)Vacancy Rate vs Absorption (SF)
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
0%
1%
2%
3%
4%
5%
6%2015 2016 2017 2018
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
0%
1%
2%
3%
4%
5%
6%2015 2016 2017 2018
2015 2016 2017 2018
-20000
0
20000
40000
60000
80000
100000
120000
Net Absorption (SF)Q
1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Vacancy Rate Excluding Spaces 10k+ SF
0%
1%
2%
3%
4%
5%
6%
7%
8%
5.0 5.0 7.3 6.1 6.0 6.5 6.5 7.1 5.8 5.8 6.6 5.5 5.0 4.4
20162015 2017 201820162015 2017 2018
Vacancy Rate Excluding Anchors 30k+ SF
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
10%
5.1 5.1 5.3 4.8 4.7 5.8 8.9 7.8 6.8 6.8 8.4 7.6 7.1 6.7
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
0
30000
60000
90000
120000
150000
Gross Absorption (SF)
20162015 2017 2018
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
0
30000
60000
90000
120000
150000
40000
80000
120000
160000
3.3 3.3 3.4 3.1 3.1 3.8 4.8 5.2 4.6 4.6 5.8 5.1 4.8 4.6
3.3 3.3 3.4 3.1 3.1 3.8 4.8 5.2 4.6 4.6 5.8 5.1 4.8 4.6
Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018
Neighborhood Center Summary
� The 13 shopping centers comprising Walnut Creek’s neigh-
borhood shopping center inventory reported at an overall
occupancy of 99.03%, slightly increasing from Q1 2018’s
99.01%
� Ten out of the thirteen neighborhood shopping centers are
over 99% occupancy.
� Nine out of the thirteen neighborhood shopping centers are
at 100% occupancy.
� Rent levels remain at all-time highs both in the suburban
Walnut Creek market and neighboring communities.
9
10
12
11
1
5
2
3
4
8
76
13
1
5
2
3
4
8
9
10
11
12
13
7
6
Rossmoor Town Center
Citrus Marketplace
Encina Grande
Ygnacio Plaza
Geary Marketplace
Countrywood
Walgreens/BevMo Center
Trader Joes Newell Center
Palos Verdes Mall
Downtown CVS
Downtown Safeway
Downtown Whole Foods
The Orchards at Walnut Creek
Center Name
75%
80%
85%
90%
95%
100%
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
Q1
Q2
Q3
Q4
2015 2016 2017 2018
Neighborhood Center Occupancy Rate
98.0
6
98.7
6
98.8
7
96.9
7
97.1
3
97.1
3
99.3
2
99.3
2
95.3
5
96.0
0
95.9
2
98.7
5
99.0
1
99.0
3
Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018
PARTNER
1525 LOCUST STREETWALNUT CREEK, CA
Retail Space for Lease
(1,765 SF Ground Floor +
462 SF Mezzanine)
The subject is a located in
the heart of Walnut Creek’s
historic downtown district.
View Brochure
Contact Brandon Norton
Featured Listing
Recent Transactions
Featured Retailer
Dunkin’ Donuts consummated a2,000 SF, 10 year lease at
4383 Clayton RoadConcord, CA
Mangosteen consummated a1,492 SF, five year lease at
1518 Bonanza AvenueWalnut Creek, CA
Made to order sandwiches stuffed with the
freshest ingredients!
1,200 - 1,800 SFEast Bay
Contact Chris Micco
MANGOSTEENPHO. VIETNAMESE FLAVORS.
ABOUT THE FIRM
John Cumbelich & Associates is a San Francisco Bay Area firm that provides
commercial real estate services to Fortune 500 retailers and select owners
and developers of retail commercial properties. The firm’s expertise is in developing store networks for retailers seeking to penetrate the
Northern California marketplace, and the representation of premier power
center and lifestyle developments.
John CumbelichChief Executive [email protected]
CA BRE #01006249
Tim SeilerPartner
[email protected] CA BRE #01076263
CA BRE #01854159
Chris [email protected]
CA BRE #01393600
Brandon [email protected]
CA BRE #01985777
JOHN CUMBELICH & ASSOCIATES1330 North Broadway, Suite 200A
Walnut Creek, CA 94596
TELEPHONE 925.935.5400WWW.CUMBELICH.COM