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Market Analysis
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<br />CBRE VALUATION & ADVISORY SERVICES 15 © 2025 CBRE, INC
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<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.
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<br />Important characteristics of the Santa Ana retail market are summarized below:
<br />SANTA ANA RETAIL SUBMARKET
<br />Year Ending Inventory
<br />(SF)
<br />Completions
<br />(SF)
<br />Occupied Stock
<br />(SF)Occupancy Asking Rent
<br />($/SF NNN)
<br />Asking Rent
<br />Change
<br />Net Absorption
<br />(SF)
<br />2020 7,051,940 -1,759 6,810,592 96.6% $28.63 2.36% -30,160
<br />2021 7,051,940 0 6,911,261 98.0% $29.70 3.76% 100,669
<br />2022 7,044,989 -6,951 6,883,509 97.7% $31.07 4.59% -27,752
<br />2023 7,055,421 10,432 6,789,068 96.2% $32.16 3.53% -94,441
<br />Q1 2024 7,055,421 0 6,766,996 95.9% $32.54 1.18% -22,072
<br />Q2 2024 7,057,921 2,500 6,734,708 95.4% $32.80 0.79% -32,288
<br />Q3 2024 7,057,921 0 6,716,671 95.2% $33.15 1.06% -18,037
<br />Q4 2024 7,057,921 0 6,707,206 95.0% $33.36 0.65% -9,465
<br />2024 7,057,921 2,500 6,707,206 95.0% $33.36 3.73% -81,862
<br />Q1 2025 7,060,921 3,000 6,749,179 95.6% $33.71 1.04% 41,973
<br />Q2 2025 7,060,921 0 6,676,035 94.5% $33.69 -0.05% -73,144
<br />Q3 2025* 7,059,458 -1,463 6,708,831 95.0% $33.88 0.56% 32,847
<br />Q4 2025* 7,057,073 -2,385 6,704,049 95.0% $34.11 0.67% -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.
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<br />City Council 17 – 31 2/17/2026
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