Item 26 - Public Hearing Regarding Bristol Project

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ta www.FinanceDTA.com VI RETAIL MARKET RESEARCH SECTION VI RETAIL MARKET RESEARCH The Specific Plan includes 350,000 SF of retail space, generally located on the first floor of the residential buildings, although the Specific Plan indicates some standalone retail buildings, such as the proposed grocery store that will replace the current Vons grocery store. This planned retail space will replace the approximately 465,000 SF of existing retail space. The Specific Plan indicates construction commencing for the first phase in 2026, the second phase in 2030, and the third phase in 2033. In most cases, retail leases are less than 10 years (although some offer tenant extension), and this should allow the owner to coordinate tenant moveouts in accordance with construction phasing. If there are existing tenant leases that could impact construction timing, the owner may incur lease termination costs to entice existing tenants to abandon their existing locations. As shown in Table 10, the majority of the retail buildings in the 2-Mile Zone were built between 1970 and 1986, with some buildings undergoing restoration between 1999 and 2002. Retail space is evolving due to many factors, as listed below. Shoppers expect improved merchandising, data -driven advice, and the ability to customize product offerings. Where previous retailers were only able to offer merchandise in the store, in the current environment, customers expect that that if the merchandiser does not have the proper size or color on hand, it can be ordered from a remote location and delivered to them by Amazon (or equivalent) within 24 hours. In each retail store, sales personnel also have access to customer data, such as rewards programs and previous customer purchasers, intended to improve the buying experience. Customers expect features that enhance their shopping experience. Sales personnel will focus on brand building and improved use of data, such as mobile phone apps that inform shoppers of promotions, QR codes, and smart displays that deliver personized messages to anticipate customer needs, thereby facilitating the sales process. In some cases, the physical store is just a showroom, with the actual product shipped from a remote location. The new retail store must be connected to "Big Data." A phone app should enable the customer to identify the location of a product within a store. This becomes more important for larger stores and minimizes the time necessary to find a specific product. Also, many retailers use data collection to "follow" promotions for future visits. Related Bristol at 3600 South Bristol Street Draft Market Study Report customer throughout the facility and add this data to their customer database to offer Exhibit 10 September 2023 22