Walnut Creek Downtown

Retail Market OverviewSecond Quarter 2018

Q2 Vacancy Rates Reach Lowest Level in 12 Months

Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018

Retail Area Total SF Vacant SF Vacancy Rate

Broadway Plaza 942,653 3,742 0.4%

Historic Downtown 574,950 62,380 10.8%

West of California 200,710 11,886 5.9%

Plaza Escuela/Talbots 170,835 16,528 9.7%

Target 141,558 0 0.0%

East of Broadway 118,595 0 0.0%

Olympia Place 105,332 0 0.0%

The Corners 96,354 0 0.0%

North of Civic 99,668 0 0.0%

Main Street Plaza 79,378 17,735 22.3%

South of Newell 62,319 0 0.0%

Newell Promenade 75,457 9,219 12.2%

2,667,809 121,490 4.6%

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Q1 2018: Downtown Walnut Creek Ends Q2 with Lowest Vacancy Rates in 12 MonthsIn the second quarter of 2018, Downtown Walnut Creek vacancy rates decreased once again. Overall vacancy reached 4.6% during Q2 – the lowest level in twelve months.

Retailers such as Bonobos, Tempurpedic, Laser Away, and, Sweetwater’s Coffee & Tea have signed leases in Q2 2018.

Bonobos, a men’s clothing store equipped with personal stylists, moved into the old location of Skin17, in Broadway Plaza.

Tempurpedic, a popular mattress stores, signed a lease at N California Blvd. Tempurpedic has expanded all over the country, but this is the store’s only location in Walnut Creek.

LaserAway relocated from Locust St. to the new mixed-use Lyric. LaserAway offers laser hair removal, laser tattoo removal, facials, and more.

Additionally at Lyric is Sweetwater’s Coffee & Tea, collectively absorbing 2,500 SF of retail space. This is the first California location, and will add to the diverse choice of cafes available in the area.

Mangosteen, a new Vietnamese restaurant will also be highlighting Walnut Creek’s diverse choices, taking over the location of Kanishka’s Gastropub on Bonanza. Also new is Roll House, a new Japanese restaurant moving in to the former Main Street Deli on Main Street.

Downtown Walnut Creek retail occupancy rates remain healthy, although additional retail inventory is constantly coming to market. Underutilized retail assets are being repurposed in the Historic Downtown, such as the former N. California McDonald’s. As projects such as 1380 N. California and The Lyric continue to break ground, the Historic Downtown will continue to adapt to the evolving Downtown Walnut Creek market.

Net absorption ended Q2 2018 at 11,663 SF, and vacancy in Historic Downtown north of Mt. Diablo Blvd decreased from 11.4% to 10.8%. The Historic Downtown’s share of overall vacancy remained stable in Q2 2018, carrying over 51% of the overall market from Q1 into Q2. Vacancy rates in the Historical Downtown have continued to rise since Q3 2016, primarily due to an increase in retail shops moving into either smaller or larger locations to support their store.

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Overall WC Downtown Vacancy Rate

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2015 2016 2017 2018

Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018

Walnut Creek’s Retail Market

The Walnut Creek retail market is the

premier shopping destination in the

East Bay and home to a wide variety of

premium branded retailers. Tiffany & Co.,

Neiman Marcus, Nordstrom, Coach, Crate

& Barrel, Banana Republic, Talbots, Apple

and numerous other best-of-class retailers

serve the entire East Bay market from stores

located in this unique, open air retail landscape

that mixes successful restaurant, retail and

entertainment destinations.

Downtown Walnut Creek offers a rare mixture

of newer retail centers and an historic shopping

district that blend seamlessly.

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Rental RatesKey Findings from the Retail Sector

� Overall vacancy decreased from 4.8% to 4.6% during Q2, the lowest

vacancy in one year.

� Upscale thrift store, ThredUp, has relocated from the former H&M

space to a smaller location on Main Street.

� The popular clothing store Free People moved from its old location

on Olympic Boulevard to a larger space near Broadway Plaza.

� Footwear store Vans has taken the place of the old Free People on

Olympic Blvd.

� The first California opening of Sweetwater’s Coffee & Tea has under-

gone construction at the Lyric mixed use project.

� Large casual dining vacancies continue to plague the Historic Down-

town market.

Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018

Vacancy Rate vs Available (SF)Vacancy Rate vs Absorption (SF)

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2015 2016 2017 2018

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Vacancy Rate Excluding Spaces 10k+ SF

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20162015 2017 201820162015 2017 2018

Vacancy Rate Excluding Anchors 30k+ SF

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Gross Absorption (SF)

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Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018

Neighborhood Center Summary

� The 13 shopping centers comprising Walnut Creek’s neigh-

borhood shopping center inventory reported at an overall

occupancy of 99.03%, slightly increasing from Q1 2018’s

99.01%

� Ten out of the thirteen neighborhood shopping centers are

over 99% occupancy.

� Nine out of the thirteen neighborhood shopping centers are

at 100% occupancy.

� Rent levels remain at all-time highs both in the suburban

Walnut Creek market and neighboring communities.

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Rossmoor Town Center

Citrus Marketplace

Encina Grande

Ygnacio Plaza

Geary Marketplace

Countrywood

Walgreens/BevMo Center

Trader Joes Newell Center

Palos Verdes Mall

Downtown CVS

Downtown Safeway

Downtown Whole Foods

The Orchards at Walnut Creek

Center Name

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2015 2016 2017 2018

Neighborhood Center Occupancy Rate

98.0

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Walnut Creek Downtown | Retail Market OverviewSecond Quarter 2018

PARTNER

1525 LOCUST STREETWALNUT CREEK, CA

Retail Space for Lease

(1,765 SF Ground Floor +

462 SF Mezzanine)

The subject is a located in

the heart of Walnut Creek’s

historic downtown district.

View Brochure

Contact Brandon Norton

Featured Listing

Recent Transactions

Featured Retailer

Dunkin’ Donuts consummated a2,000 SF, 10 year lease at

4383 Clayton RoadConcord, CA

Mangosteen consummated a1,492 SF, five year lease at

1518 Bonanza AvenueWalnut Creek, CA

Made to order sandwiches stuffed with the

freshest ingredients!

1,200 - 1,800 SFEast Bay

Contact Chris Micco

MANGOSTEENPHO. VIETNAMESE FLAVORS.

ABOUT THE FIRM

John Cumbelich & Associates is a San Francisco Bay Area firm that provides

commercial real estate services to Fortune 500 retailers and select owners

and developers of retail commercial properties. The firm’s expertise is in developing store networks for retailers seeking to penetrate the

Northern California marketplace, and the representation of premier power

center and lifestyle developments.

John CumbelichChief Executive Officerjohn@cumbelich.com

CA BRE #01006249

Tim SeilerPartner

tim@cumbelich.com CA BRE #01076263

Joe Kuvetakisjoe@cumbelich.com

CA BRE #01854159

Chris Miccochris@cumbelich.com

CA BRE #01393600

Brandon Nortonbrandon@cumbelich.com

CA BRE #01985777

JOHN CUMBELICH & ASSOCIATES1330 North Broadway, Suite 200A

Walnut Creek, CA 94596

TELEPHONE 925.935.5400WWW.CUMBELICH.COM