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09-11-2018 CC Rpt 22City of Chino Hills CITY COUNCIL MEETING September 11, 2018 DISCUSSION CALENDAR ITEM NO. 22 THIS ITEM IS A PRESENTATION ONLY 123/131 Updated to reflect correct Item No. 9/10/18 @ 2:30 p.m. Retail Briefing Erik Westedt & Blake Kaplan September, 2018Erik Westedt & Blake Kaplan September, 2018 Retail Briefing Retail Overview Erik Westedt Blake Kaplan Senior Vice President Associate Retail Advisory Services Retail Advisory Services 735 600 500 400 379 268 252 250 200 200 200 170 150 132 124 111 110 101 100 100 100 100 100 # of announced closings Source: PNC, Creditntell, JLL Research Top Retail Closures Toys “R” Us and Walgreens top the list of 2018 closures 2018 Closures on the Map AK HI # of stores closing in 2018 0-10 11-25 26-50 51-75 76-100 100-300 Over 300 Source: Creditntell, JLL Research California tops the states with the most expected closures in 2018 to date Frontrunners in the Expansion Game Clicks-to-bricks retailers like Warby Parker, Untuckit and Indochino continue their aggressive expansion plans 1000 900 320 300 290 200 180 125 100 90 80 75 69 60 60 60 50 50 40 36 35 # of announced openings Source: PNC, Coresight Research, JLL Research *worldwide The Real News: Retail Apoca-NOT! •U.S. Sales are up! Pure retail (excluding food service, auto and gas) is up 4.2% •Amazon controls 49% of all online retail sales (5% of all retail spend) •Investors increase appetite for grocery-anchored assets Things to Watch •Bankruptcy Trends •Legacy retailers continued stress •Flight to quality •Grocery anchor center vs power center •Emphasis on gateway cities Food Halls on the Rise 2017 118 2020 300Number of Food Halls in U.S.: Eataly has 6 U.S. locations Lucky Food Hall, Miami Dekalb Market Hall, NY Asian Capital Focused on Gateway Markets Source: JLL Research, Real Capital Analytics; Includes markets with greater than $1.0 billion of investment General Retail 64% Malls 13% Power centers 2% Shopping Center 18% Specialty Center 3% SF Under Construction Source: CoStar, JLL General/freestanding retail dominates construction Consumers want more F&B & Entertainment Tenants 17% 19% 20% 33% 34% Gyms/fitness centers Medical/health clinics Personal care services Entertainment Food & beverage Non -retail tenants consumers want to see more of Source: ICSC, JLL Service tenants entice shoppers to visit more often and stay longer 45% 38% Non-retail tenants increase the amount of time I spend at shopping centers I visit shopping centers more often as a result of non-retail tenants being there Non -retail tenants impact % of US adults Source: ICSC, JLL State of the Retail Market Average retail rents still rising Shopping center vacancy is inching upward Rent has increased by 1.7% Holiday retail sales soared last year Source: JLL Research, CoStar Inland Empire Q2 Statistics Inland Empire Q2 Statistics City of Chino Hills Retail Shopping Centers Overview Soquel Canyon Pkwy. & Pomona Rincon Rd. Intersection Soquel Canyon Pkwy.P om o n a R i n c o n R d . Soquel Canyon Square Soquel Canyon Square 71 Freeway & Soquel Canyon Pkwy. DENTIST Burgerim, Sadanas, Inchin Bamboo & Sharetea The Rincon The Rincon 15881 Pomona Rincon Rd. DENTIST Luchador Brewing Company & The Loop The Santa Barbara at Chino Hills The Santa Barbara at Chino Hills Soquel Canyon Pkwy. & Pomona Rincon Rd. Optometrist (In Negotiations) Squeeze In & Nekter Juice Bar Big Lots Center NWC Chino Hills Pkwy. & Pipeline Ave. Fitness 19 The Shoppes at Chino Hills N TheRefinedMan Tryst Med Spa #2025 #2030 #4000 #5057#5070#5085 VACANT#2010714 SF #3020 #3010 #3015 #3025 #3030 #3035 #3042 #3097 #3095 #3093 #5050 #4020 #4030 #4040 Mail Room 377 SF Suites 200 to 290 2nd Floor 2nd Floor #4060 2028998 SF Interactive Fountain 2028#2035 #2043 4045 867 SF #4025 #4005 #4010 #4015 #3050 #3065#3060 VACANT#50102,283 SF VACANT#20157,139 SF Available SHOPPES DRIVE BOYS REPUBLIC DRIVECITY CENTER DRIVEPEYTON DRIVEGRAND AVENUE BUILDING 4 BUILDING 5 BUILDING 2 BUILDING 3 #3085 7 Leaves CafeSHOPPES AT CHINO HILLS MAIN STREET Mano a ManoDr. Quinn Yu Baby Shoppe #2040 #2045 #2050 #2055 #2060 #2065#2075 #3005 #3040 #3045 #3052 #3055 #3090 #3075#3070 #3080 #4003 #5040 #5045 #5055 #5035 #5030 #5020#5015 #5013 #5005 #5065 #4035 #4050 #4055 #4075 VACANT#5015 1,334 SF 3095PacificFish Grill2,012 SF #2005 #2020 The Shoppes at Chino Hills 13920 City Center Dr. The Commons The Commons SEC Chino Hills Pkwy. & Ramona Ave. Crossroads Marketplace 12945-13225 Peyton Dr. Erik Westedt Blake Kaplan Lic. #01372758 Lic. #02001158 213 545 4500 909 702 3367 erik.westedt@am.jll.com blake.kaplan@am.jll.com Jones Lang LaSalle Brokerage, Inc. Real Estate License #01856260 @2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.