A retail study conducted in September 2008, revealed that Anchored Shopping Centers within four miles of the 1-215/Clinton Keith Road interchange in the Murrieta trade area experienced a vacancy rate of approximately 5% for existing standing product. Anchored Shopping Centers are defined as those centers having at least one retail anchor larger than 15,000 SF and excludes furniture space and strip centers. According to the study, the Murrieta trade area is bounded by the I-15/I-215 interchange on the south, Clinton Keith Road and Palomar on the west, one mile north of I-215/Scott Road on the north and one mile east of the future Clinton Keith Road/Winchester Road intersection on the east. This area includes most of Murrieta and portions of Temecula, French Valley, Menifee and Wildomar. Within this area, there is 3,113,416 SF of anchored retail space. 5% represents a normal vacancy rate.

Furniture stores have been excluded from the analysis because they typically are not part of a tenant mix for a competitive retail center, nor do they generally draw customers to other stores within a shopping center. In addition, the study indicates that due to the infrequency of visits for furniture purchases , such a use does not generally contribute to the success of a well-anchored center.

There were approximately 925,000 SF of leased space which was absorbed in the trade area during the past year in six centers. During that time, six stores closed (five of which were furniture stores) in three centers, which equaled 145,000 SF. With regard to future proposed retail projects, approximately 625,000 SF was committed through land purchases or leases to anchor three proposed centers. Combining these numbers, it is estimated that the Murrieta trade area is experiencing a net absorption of approximately 1,400,000 SF of space during the past year.

This absorption is occurring despite the difficult national economic conditions.

Please contact Bruce Coleman at (951) 461-6021 or Kim Davidson at (951) 461-6003 for a copy of the study.

MURREITA RETAIL VACANCY RATE IN 2009 at 6.5%

A recent study completed by the large retail developer, Opus West, indicates that Murrieta and Southwest Riverside County currently experiences a 6.5% retail vacancy rate. This compares very favorably to the West End communities of the Inland Empire such as Chino Hills and Rancho Cucamonga which are experiencing a 6.0% vacancy rate. Murrieta's vacancy levels are dramatically lower than the East End of the Inland Empire which includes communities such as Moreno Valley, Riverside and San Bernardino. The East End is experiencing an overall retail vacancy rate of 14.8%. The Inland Empire as a whole has a retail vacancy rate of 9.6%.

Although national reports have indicated that the "Inland Empire’ is experiencing very high retail vacancies, a closer look at the numbers shows that the Southwest Riverside County submarket which includes Murrieta - is experiencing better retail occupancy levels than the Inland Empire to the north.

For additional information about development opportunities in Murrieta, please contact Bruce Coleman, Economic Development Director at (951) 461 6021 or Kim Davidson, Business Development Manager at the City of Murrieta at (951) 461-6003