VIEWPOINT

Restaurants are among the most active retail segments

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VIEWPOINT

AMERICA’S FAVORITE PAST-TIME: EATING

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Ashley Hill

Senior Research Analyst, Retail

SOUTHERN CALIFORNIA RETAIL

Source: U.S. Census Bureau, January 2016.

Figure 1: U.S. Retail Sales for Grocery Stores vs. Restaurants and Bars

0

10

20

30

40

50

60

Jan

1992

Oct 1

992

Jul 1

993

Apr 1

994

Jan

1995

Oct 1

995

Jul 1

996

Apr 1

997

Jan

1998

Oct 1

998

Jul 1

999

Apr 2

000

Jan

2001

Oct 2

001

Jul 2

002

Apr 2

003

Jan

2004

Oct 2

004

Jul 2

005

Apr 2

006

Jan

2007

Oct 2

007

Jul 2

008

Apr 2

009

Jan

2010

Oct 2

010

Jul 2

011

Apr 2

012

Jan

2013

Oct 2

013

Jul 2

014

Apr 2

015

(Millions) Grocery Stores Restaurants and Bars

VIEWPOINT

RESTAURANT SALES ON THE RISE SPURRING GROWTH EXPANSION

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Figure 2: Consumers who dined out at least once in a weeklong period (%)

Source: Hartman Group, May 2015.

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Figure 3: What consumers look for in their food choices (%)

Source: Business Insider, 2015.

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10

20

30

40

50

60

Fresh LessProcessed

FewerArtificial

Ingredients

NaturalFoods

Low Calorie Organic Fat Free LocallyGrown

SmallPortions

Sugar Free Eco Friendly

Total Millennials Gen X Baby Boomers

VIEWPOINT

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GROCER TENANTS ILLUSTRATE HOURGLASS ECONOMY

Figure 4: Grocery store sales ($)

$0

$100

$200

$300

$400

$500

$600

$700

$800

2002 2004 2006 2008 2010 2012 2014 2016 2018

(Billions)

Source: BI Intelligence, E-Commerce and the Future of Retail 2015.

Forecast

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WHY THIS MATTERS TO SOUTHERN CALIFORNIA REAL ESTATE

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Disclaimer: Information contained herein, including projections, has been obtained from sources believed to be reliable. While we do not doubt its accuracy, we have not verified it and make no guarantee, warranty or representation about it. It is your responsibility to confirm independently its accuracy and completeness. This information is presented exclusively for use by CBRE clients and professionals and all rights to the material are reserved and cannot be reproduced without prior written permission of CBRE.

AMERICAS RESEARCH

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