Laserfiche WebLink
Santa Ana Redhill Development <br /> <br /> <br /> <br /> <br />Prepared for: City of Santa Ana <br /> <br />AECOM <br />18 <br /> <br /> <br />Figure 12: Retail Rent <br /> <br />Source: Costar, BLS, AECOM <br /> <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 /> <br />Table 8: Retail Inventory and Growth 2000-19 <br />Retail Inventory and Growth 2000-2019 <br /> 2-Mile Radius Orange County <br />Inventory 3,413,062 142,979,370 <br />Share of OC 2% 100% <br />Growth 2010-19 (SF) 137,016 4,594,568 <br />Growth 2010-19 (%) 4% 3% <br />Share of OC Growth 3% 100% <br />Source: Costar, AECOM <br /> <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 />$26.60 <br />$25.79 <br />$0.00 <br />$5.00 <br />$10.00 <br />$15.00 <br />$20.00 <br />$25.00 <br />$30.00 <br />$35.00 <br />$40.00 <br />$45.00 <br />2006 2008 2010 2012 2014 2016 20182019 Inlfation Adjusted DollarsRetail Rent (NNN/SF/Year <br />2-Mile Radius Orange County <br />3-245