Nordstrom Rack has long been looking for the perfect Tri-Valley location. It was rumored they had been negotiating for space at both Fallon Gateway and potentially the second phase of Livermore Premium Outlets. But alas, they have found their new location, one that does not exist yet! They will be part of the opening phase of The Village at Dublin located on the corner of Dublin Blvd and Hacienda Drive.
The Transit oriented center was planned pre-recession days. Of course the look, size, feel, and tenant line-up has completed changed. You might remember Ikea was planning a store in this area before downturn, as was Whole Foods. Whole Foods has stood that stand of time and will be the grocery anchor to the center but the Ikea deal blew up about the time the market hit rock bottom.
With Whole Foods as an anchor and Nordstrom rack as a shadow anchor, I would expect this to be a very busy retail center with many national retailers and restaurants. Regency Centers is the developer who will be developing the center and own other assets in the East Bay including Tassajara Crossings in Danville (Safeway anchored center near Blackhawk) and a portion of the Diablo Plaza (also Safeway anchored) on Crow Canyon in San Ramon. In addition, Regency owns retail centers in Walnut Creek, Clayton, Pleasant Hill, and Emeryville.
There is no doubt the new center will command the highest rents in town. We have seen the high water marks created by Fallon Gateway (@ Fallon and I-580) and Gateway Pleasanton (@ Bernal Ave. and I-680) in excess of $4.00 per square foot, monthly ($48.00 psf annually). I would very much expect to see small shop space at or near $5.00 per square foot, monthly ($60.00 psf annually).
My guess as to who will be the next big box tenants to announce new stores? Home Goods and Buybuy Baby are strong candidates, watch for either of these stores to pop up in the new Village center or Fallon Gateway.