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Market Analysis
<br />Market Analysis
<br />The subject property can support development of various retail uses and service uses. We have provided
<br />a brief overview of the improved retail market in the subject area. We recognize that this analysis is for the
<br />improved markets; however, land tends to follow the trends of the improved markets.
<br />The subject property is located within the Santa Ana submarket, which is part of the greater Orange County
<br />Metro market as defined by Costar. The following data is for the Santa Ana submarket as of 2nd Quarter
<br />2025.
<br />Santa Ana Submarket
<br />Important characteristics of the Santa Ana retail market are summarized below:
<br />SANTA ANA RETAIL SUBMARKET
<br />Inventory Completions Occupied Stock Asking Rent Asking Rent Net Absorption
<br />Year Ending (SF) (SF) (SF) Occupancy ($/SF NNN) Change (SF)
<br />2020
<br />7,051,940
<br />-1,759
<br />6,810,592
<br />96.6%
<br />$28.63
<br />2.36%
<br />-30,160
<br />2021
<br />7,051,940
<br />0
<br />6,911,261
<br />98.0%
<br />$29.70
<br />3.76%
<br />100,669
<br />2022
<br />7,044,989
<br />-6,951
<br />6,883,509
<br />97.7%
<br />$31.07
<br />4.59%
<br />-27,752
<br />2023
<br />7,055,421
<br />10,432
<br />6,789,068
<br />96.2%
<br />$32.16
<br />3.53%
<br />-94,441
<br />Q12024
<br />7,055,421
<br />0
<br />6,766,996
<br />95.9%
<br />$32.54
<br />1.18%
<br />-22,072
<br />Q2 2024
<br />7,057,921
<br />2,500
<br />6,734,708
<br />95.4%
<br />$32.80
<br />0.79%
<br />-32,288
<br />Q3 2024
<br />7,057,921
<br />0
<br />6,716,671
<br />95.2%
<br />$33.15
<br />1.06%
<br />-18,037
<br />Q4 2024
<br />--------------------------------------------------------------------------------------------------------------------------------
<br />7,057,921
<br />0
<br />---6,707,206 -----------
<br />95.0%
<br />--------
<br />$33.36
<br />0.65%
<br />-9,465
<br />2024
<br />------------------------------------------------------------------------------------------------------------------------------------------------------
<br />7,057,921
<br />2,500
<br />6,707,206
<br />95.0%
<br />$33.36
<br />3.73%
<br />-81,862
<br />Q12025
<br />7,060,921
<br />3,000
<br />6,749,179
<br />95.6%
<br />$33.71
<br />1.04%
<br />41,973
<br />Q2 2025
<br />7,060,921
<br />0
<br />6,676,035
<br />94.5%
<br />$33.69
<br />-0.05%
<br />-73,144
<br />Q3 2025*
<br />7,059,458
<br />-1,463
<br />6,708,831
<br />95.0%
<br />$33.88
<br />0.56%
<br />32,847
<br />Q4 2025*
<br />7,057,073
<br />-2,385
<br />6,704,049
<br />95.0%
<br />$34.11
<br />0.67%
<br />-4,323
<br />*Future Projected Data according to Costar
<br />Source: Costar, 2nd Quarter 2025
<br />The Santa Ana retail submarket consists of approximately 7,060,921 square feet of retail space. The current
<br />submarket inventory represents approximately 4.9% of the overall market inventory. The following
<br />observations were noted from the table above:
<br />• As of 2nd Quarter 2025, there was approximately 6,676,035 square feet of occupied retail space
<br />(including sublet space), resulting in an occupancy rate of 94.5% for the submarket. This reflects a
<br />decrease from the previous quarter's occupancy of 95.6%, and a small decrease from an
<br />occupancy rate of 95.0% from last year. The submarket occupancy is below the 96.0% market
<br />occupancy.
<br />• The submarket experienced negative 73,144 square feet of net absorption for the current quarter.
<br />This indicates a decline from the previous quarter's positive 41,973 square feet of net absorption,
<br />and an improvement from the negative 81,862 square feet of net absorption from a year ago.
<br />Overall, the submarket has experienced negative 31,171 square feet of net absorption for the
<br />current year-to-date period. The submarket's current net absorption of negative 73,144 square feet
<br />compares favorably with the overall market net absorption of negative 163,090 square feet.
<br />• The submarket had zero completions for the current quarter, which indicates a decrease from the
<br />previous quarter's completions of positive 3,000 square feet, and a decrease from the completions
<br />of positive 2,500 square feet from last year.
<br />CBRE VALUATION & ADVISORY SER/ICES 15 © 2025 CBRE, INC
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