Laserfiche WebLink
Figure 12: Retail Rent <br />Retail Rent (NNN/SFNear <br />$45.00 <br />$40.00 <br />000 <br />$35.00 <br />$30.00 - <br />$26-60 <br />rn <br />$25.00 <br />Q <br />$25.79 <br />C <br />$20.00 <br />0 <br />$15.00 <br />C <br />$10.00 <br />rn <br />o <br />$5.00 <br />N <br />$0.00 <br />2006 <br />2008 2010 2012 2014 2016 2018 <br />—2-Mile Radius —Orange County <br />Source: Costar, BLS, AECOM <br />The vacancy rate for retail properties in the 2-mile radius rose above 10% in 2011 but has remained very low since <br />2014. At the end of 2018, the vacancy rate for the 2-mile radius was 2%, and that of Orange County was also very <br />low at 3.4%. <br />Adjusted for inflation, retail rent decreased 8% in the 2-Mile Radius and 5% in Orange County from 2010-2018. This <br />is the only land use for which rent has declined once adjusted to the Consumer Price Index. Nominal rents increased <br />slightly but did not match the rate of inflation. Generally, this decline is indicative of national trends for retail where <br />traditional brick -and -mortar retail has found itself increasingly competing with online retail. This has led to a shift to <br />destination retail which focuses on both the redevelopment of existing retail and development of new retail that <br />focuses on experiences and entertainment in order to thrive. This is generally consistent with the orientation of retail <br />uses proposed in the Project. <br />These wider trends help explain the lack of rent growth even as vacancy rates have decreased below what is <br />considered full retail structural occupancy (5%), indicating a continued demand for retail space. Class B and C retail <br />properties in the 2-mile radius lower the average rent for the area compared to the newer Class A high -end <br />destination retail establishments. <br />Table 8: Retail Inventory and Growth 2000-19 <br />Retail Inventory <br />and Growth 2000-2019 <br />2-Mile Radius <br />Orange County <br />Inventory <br />3,413,062 <br />142,979,370 <br />Share of OC <br />2% <br />100% <br />Growth 2010-19 (SF) <br />137,016 <br />4,594,568 <br />Growth 2010-19 (%) <br />4% <br />3% <br />Share of OC Growth <br />3% <br />100% <br />Source: Costar, AECOM <br />The retail inventory in the 2-mile radius represents a relatively small percentage of both the County total and share of <br />growth and covers a wide variety of retail types including both older neighborhood -serving commercial corridors, such <br />as the Main Street Corridor, and large destination retail centers, such as the District at Tustin Legacy. <br />75C-641 <br />