Citing changes in the retail industry, and the economic downturn that begin in 2008, Catellus has reworked it’s tenant leasing strategy for Alameda Landing. The Economic Development Commission will have a chance to weigh-in on it next Thursday evening.
Under the newly prepared leasing strategy document, Target would remain the anchor tenant, occupying 140,000 square feet of space, and the second largest tenant, taking in 30,000 to 50,000 square feet of space, would ideally be a grocery store. The grocery store was not considered in the original 2006 leasing strategy for Alameda Landing.
A third general retailer – sporting goods, office supplies, pet supplies – would take another 30,000 to 50,000 square feet of space.
A building materials retailer, apparel stores, restaurants, furniture/home furnishing stores and service retail would round out the balance of the occupancy.
Catellus’ consultants also updated a study on the retail demand in Alameda. According to the report, in 2010, Alameda had roughly 32,351 households, spending about $17,000 per household on retail, or roughly $540 million per year. With the average household income in Alameda almost $95,000 per year, retail sales in Alameda were capturing 18 percent of household incomes.Typically, however, for households with incomes in the ballpark of $95,000 per year, retail spending is closer to 30 percent, or around $30,000 per year. The numbers suggest that Alameda households are spending a lot of money outside of Alameda.
The leasing strategy aims to improve the “capture rate” for local dollars with the Target store, restaurants and food specialty stores such as La Boulange, PF Chang and Panera Bread and home furnishing stores like Restoration Hardware and HomeGoods.
A store such as REI, Papyrus, Bath & Body Works, as the third general retailer, would capture retail spending in excess of local Alameda dollars, by bringing in Oakland residents who live near Alameda Landing.
The report says that Alameda retail spending leakage to other jurisdictions amounts to over $206 million per year for the General Merchandise and Building Materials & Garden Equipment categories, the two largest categories Catellus will target at Alameda landing.
The Economic Development Commission meeting starts at 7:00 p.m., next Thursday, September 27th, in City Council chambers.