Burbank Town Center

Burbank, CA

PinPoint Report July 26, 2018 Report Contents

• Key Findings • Implications • Burbank Town Center Findings • Visitor Origin • Shopper Profile Compared to Market • Market Penetration • The Market: Income Distribution and Visitor Origin Compared to 5, 10 15 Radii • Top ZIPs and ZIP Code Opportunities • On-Site Visitation and Brand Affinity • Competitor Centers: Overview • Key Comparisons, Distance Traveled, Dwell Time, Visit Frequency • Competitor Centers: Captured Markets, Shopper Origin and Shared Markets • Shopper Demographics • Top States • Appendix • How to Use This Report • Study Goals and Methodology • Definitions • Population Density Map

• Burbank Town Center’s core market has a growing population of more than 2.2 million, with the vast majority (72%) of shoppers residing within 10 miles of the property. • The core market extends to the northwest along I-5, beyond Santa Clarita. The market is nearly contiguous between the 5 and the 405 stretching north approximately 10 miles. To the south, west and southwest, the market truncates due to competitive locations and natural boundaries. • More than half (58%) of all shopper visits to Burbank Town Center originate within 25 shopper ZIP Codes which represent a combined population of 1,030,023. • The core market (includes Burbank, North Hollywood, Glendale, Sun Valley and Pacoima): 46% of shoppers/542,994 population • Sylmar, Sunland, Panorama City, Tujunga, Valley Village, San Fernando: 8% of shoppers/281,191 population • Van Nuys and Los Angeles: 4% of shoppers/205,838 population • Remainder of California: 31% of shoppers + 11% from outside California • Burbank Town Center draws double-digit percentages of shoppers from all 18+ age segments, with a particularly solid draw among those between the ages of 25-44 (39% of all shoppers) • There is a nearly even representation of Caucasian shoppers (40%) and Hispanic or Latino shoppers (39%). Asian shoppers represent another 13% of visits. • The average household income of Burbank Town Center’s shoppers is slightly higher than Glendale Galleria’s ($84,444 vs. $82,176) with a higher percentage earning $100K+ (29% vs. 27%). • Current visitation patterns to Burbank Town Center are clustered near the food court and also near Barnes & Noble and In-N-Out Burger, with 49% of all visitors seen only at the mall portion of the project. • The Burbank Town Center shopper has a strong affinity for grocery, “healthy” fast food, fitness and an array of youth-oriented retail brands. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. PinPoint powered by Alexander Babbage® 3 Implications

1. Among all studied locations Burbank Town Center’s shoppers have the second lowest average household income ($84,444). Only Glendale Galleria attracts a shopper whose income is lower ($82,176). With an average household income of $90,776 within a 10-mile radius, there is clearly an opportunity to capture a better consumer at Burbank Town Center.

2. There are areas of higher income in proximity to Burbank Town Center, but the market as a whole is characterized by more moderate incomes. As Burbank Town Center’s redevelopment progresses, attention should be given to creating a vibrant, attractive experience that appeals to a broad cross-section of incomes, ethnicities and life-stages.

3. Price point guidance should be informed by the brands for which shoppers have an affinity – as well as “stretch” brands that would appeal to higher income households that current leave the market for shopping, dining and entertainment.

4. The strong cross-shopping patterns from the Burbank area to The Paseo, The Grove and Americana at Brand, are evidence that Burbank consumers are leaving the market to access goods and experiences not found closer to home – and an indication that given the appropriately tailored merchandise mix, Burbank Town Center can re-capture these visits.

5. If a geo-targeted communication strategy (either digital or traditional) is viable, the most viable shopper opportunity outside the core market is ZIP Code 91607 (29,807 population and $81,556 average household income).

Time period of the data: June 2017 - May 2018. For this analysis, a total of 1,659,672 trips to the tested shopping locations were analyzed.

Burbank Town Center Key Metrics: Shopper Origin Population: 2,204,853 Average Distance Traveled: 7.6 miles (within a 50-mile radius) Average Dwell Time: 80.1 Legend Monthly Visit Frequency: 1.8 - - - - 15-miles Top 75% of Trips Shopper Origin represents home block group location of visitors seen at the center.

The Paseo

Burbank Town Center Los Angeles, CA Metropolitan Statistical Area

50%

40% Average age College degree 30% or higher 21%20% 44.6 18%18% 17%18% 16% 20% 14%14% 14%15% 16% 44.9 34.6% Age 10% 32.0% – 0.3 yrs 0% versus MSA 18-24 25-34 35-44 45-54 55-64 65+

50% 43% 42% 40% Average +2.6 pts 29% 28% household income 30% versus MSA

$84,444 20% 15% 14% 14% 15% $87,778 Income 10% - 3.8% 0% Less than $50,000 $50,000-$99,999 $100,000-$149,999 $150,000 or more versus MSA 50% 46% Children <18 in 40% 39% 40% household 30% 30% 32.9% 36.9% 20% 13% 15% 10% 6% 4% 3% 3% -4.0 pts Ethnicity 0% versus MSA White Hispanic Asian Black Other

Legend - - - - 15 miles Strongest Penetration 9 8 7 6 5 Burbank Town Center’s strongest 4 contiguous penetration is from the 3 areas closest to the center, as 2 well as to the north along I-5 Weakest Penetration toward Santa Clarita.

The Paseo

Legend - - - - 15 miles Strongest Penetration 9 8 7 Burbank Town Center’s strongest 6 contiguous penetration spans to the 5 east to the 210, to the west to the 4 Hollywood Freeway and to the north into 3 Sylmar, but is truncated to the south by 2 Glendale Galleria and The Americana at Weakest Penetration Brand

Income Distribution

- - - - 15 miles $150,000 or more $100,000-$149,999 $50,000-$99,999 $25,000-$49,000 Less than $25,000

2017 Estimated Demographics 5-mile 10-mile 15-mile PinPoint

Population 480,220 2,307,346 4,516,485 2,204,853

Number of Households 182,830 852,630 1,585,864 848,020

Age 18-24 11% 12% 13% 14%

25-34 20% 22% 21% 21%

35-44 18% 19% 18% 18%

45-54 17% 17% 16% 17%

55-64 16% 14% 14% 14%

65+ 18% 16% 17% 16%

Average Age 45.8 44.7 44.6 44.6

HH Income Less than $50,000 39% 44% 44% 43%

$50,000 - $74,999 17% 16% 16% 16%

$75,000 - $99,000 12% 11% 11% 12%

$100,000 - $149,999 15% 13% 14% 15%

$150,000 or more 17% 16% 16% 14%

Average Household Income $94,338 $90,776 $91,969 $84,444

Children in Household 30% 31% 33% 33%

Education Less than College 35% 39% 41% 38%

Some College 26% 23% 23% 28%

College Degree 26% 25% 23% 23%

Post-Graduate Degree 13% 13% 13% 11%

Ethnicity Caucasian/White 49% 37% 33% 40%

African-American/Black 2% 3% 5% 4%

Hispanic/Latino 25% 31% 32% 39%

Asian 9% 11% 11% 13%

Other 15% 19% 19% 3%

2016-2021 Average Percent of Cumulative Total Total ZIP City State Market Share Population Household Visits Percent Visits Households Population Growth Income

91504 Burbank CA 31.5% 6.5% 6.5% 9,694 26,666 2.6% $97,484 91501 Burbank CA 35.2% 5.0% 11.5% 8,447 21,522 3.3% $85,770 91505 Burbank CA 27.2% 4.2% 15.7% 13,166 31,028 1.7% $88,284 91352 Sun Valley CA 24.8% 4.2% 19.9% 12,401 49,325 1.9% $66,289 91606 North Hollywood CA 19.7% 3.5% 23.4% 14,700 44,796 1.7% $55,490 91506 Burbank CA 32.6% 3.5% 26.9% 7,353 18,377 1.1% $96,033 91605 North Hollywood CA 17.2% 3.0% 29.9% 15,280 55,806 2.8% $56,715 91331 Pacoima CA 14.8% 3.0% 32.8% 22,811 105,748 3.0% $59,824 91601 North Hollywood CA 19.2% 2.9% 35.8% 17,346 40,131 4.2% $61,616 91201 Glendale CA 24.3% 2.8% 38.5% 7,956 22,265 0.1% $74,820 91502 Burbank CA 33.9% 2.7% 41.2% 5,236 11,924 2.9% $52,690 91342 Sylmar CA 12.4% 2.6% 43.8% 23,775 92,966 3.6% $76,198 91202 Glendale CA 12.8% 1.5% 45.3% 9,895 25,874 0.8% $105,586 91040 Sunland CA 18.5% 1.4% 46.7% 7,548 21,128 2.3% $87,453 91206 Glendale CA 7.3% 1.3% 48.0% 13,616 34,122 2.6% $89,403 91402 Panorama City CA 8.6% 1.3% 49.2% 18,890 72,878 2.4% $53,747 91205 Glendale CA 7.1% 1.2% 50.4% 14,335 38,525 2.3% $49,026 91042 Tujunga CA 14.1% 1.2% 51.6% 9,939 27,625 2.3% $77,647 91602 North Hollywood CA 12.9% 1.1% 52.6% 8,886 16,885 3.6% $96,659 91405 Van Nuys CA 7.7% 1.1% 53.7% 15,878 50,337 2.2% $54,461 91607 Valley Village CA 9.5% 1.0% 54.7% 13,793 29,807 3.1% $81,556 90026 Los Angeles CA 6.6% 0.9% 55.6% 25,105 68,238 2.7% $61,180 91401 Van Nuys CA 7.3% 0.9% 56.4% 15,616 41,873 1.8% $73,612 90027 Los Angeles CA 6.6% 0.8% 57.3% 22,027 45,390 1.6% $76,632 91340 San Fernando CA 13.1% 0.8% 58.0% 8,775 36,787 2.2% $59,304 58.0% 342,468 1,030,023 2.4% $87,778

Average Population ZIP City State Distance (miles) Market Share Total Population Household Opportunity Growth Income 91602 North Hollywood CA 3.9 12.9% 16,885 $96,659 3.6% 49

91607 Valley Village CA 5.1 9.5% 29,807 $81,556 3.1% 51

91206 Glendale CA 6.0 7.3% 34,122 $89,403 2.6% 51

90026 Los Angeles CA 7.8 6.6% 68,238 $61,180 2.7% 51

91342 Sylmar CA 10.5 12.4% 92,966 $76,198 3.6% 51

91601 North Hollywood CA 3.5 19.2% 40,131 $61,616 4.2% 53

90027 Los Angeles CA 4.1 6.6% 45,390 $76,632 1.6% 53

91504 Burbank CA 1.6 31.5% 26,666 $97,484 2.6% 55

91202 Glendale CA 2.9 12.8% 25,874 $105,586 0.8% 61

91501 Burbank CA 2.0 35.2% 21,522 $85,770 3.3% 63

Opportunity Matrix

What is an opportunity matrix?

This opportunity matrix is designed to help identify ZIP codes within the local/regional market for targeting and additional outreach efforts. It is meant to be used as a guide – not as a definitive solution. The JLL team should use this as a starting point in combination with local market knowledge and additional insights gained from the Pinpoint system.

How are the calculations performed?

This opportunity matrix uses simple rank calculations for five key variables: 1. distance to property; 2. market share; 3. total population; 4. average household income, and 5. the population growth of the ZIP code. Total population, average household income, and population growth are in descending order (e.g. the highest number gets a value of 1 and the lowest a value of 25). Distance is ranked in ascending order (e.g. the closest ZIP gets a value of 1 and the furthest a value of 25). Market share also is ranked in ascending order, under the assumption that geographies with lower market share represent better opportunities for growth. These ranks are then summed together with the lowest value representing the best opportunity for JLL.

Other considerations to keep in mind

This is a method to identify opportunity areas but it is not the only method. JLL should use all available data sources in conjunction with local knowledge to plan and target certain geographies. This matrix can be adapted and changed as needed (e.g. assigning a relative "weight" to the variables in the calculation) depending on the given situation.

91342

91504 91501

91607 91601 91202

91206 91602

90027

When specifically considering proximity, the most viable shopper opportunity for Burbank Town Center, outside of its core market, is in ZIP Code 91202 (25,874 pop/$105,586 avg. HH income). Given the topography and traffic conditions, ZIPs 90026 90026 and 91342 are likely “stretch” ZIPs.

©2018, Jones Lang LaSalle IP All Rights Reserved PinPoint powered by Alexander Babbage® Visitors to Burbank Town Center tend to be most heavily clustered near the food court and also near Barnes & Noble and In-N-Out Burger

Areas 1 & 2 15% (Z-2)

Burbank Food Town Center AMC, B&N, Court 67% In-N-Out (Z-1) 43% (Z-3)

Percentages sum to more than 100% due to cross shopping in the center. (20.4% of shoppers visit more than one zone.) Legend one dot = 100 devices seen

Percentage of Percentage of Specific Areas Visited Specific Areas Visited All Shoppers All Shoppers

One Zone Only 79.6% Zone 1 (Burbank Town Center Only) 48.9%

Two Zones 15.9% Zone 3 (AMC, B&N, In-N-Out) 25.0%

Three Zones 4.4% Zone 1 & Zone 3 11.2%

Percentage of All Shoppers 100.0% Zone 2 (Area 1 & 2) 5.8%

All 3 Zones 4.4%

Zone 1 & Zone 2 2.9%

Zone 2 & Zone 3 1.9%

Percentage of All Shoppers 100.0%

Percent of Percent of Percent of Specific Areas Visited Zone 1 Shoppers Zone 2 Shoppers Zone 3 Shoppers

Zone 1 (Burbank Town Center Only) 72.6%

Zone 2 (Area 1 & 2) 38.7%

Zone 3 (AMC, B&N, In-N-Out) 58.8%

Zone 1 & Zone 2 4.2% 19.1%

Zone 1 & Zone 3 16.6% 26.3%

Zone 2 & Zone 3 12.8% 4.5%

All 3 Zones 6.6% 29.5% 10.4%

Percentage of Area Shoppers 100.0% 100.0% 100.0%

©2018, Jones Lang LaSalle IP All Rights Reserved PinPoint powered by Alexander Babbage® 19 The Burbank Town Center shopper has a strong affinity for grocery, “healthy” fast food, fitness and an array of youth-oriented retail brands

Retail Food & Beverage Grocery Automotive

Index 284 589 647 293 151 256 551 426 254 524 132 424 243 355 118 423 236 324 384 115 208 280 102 272 185 252 Fitness 178 246 239 305 172 245 158 270 168 229 219

Affinity Index shows locations visited by Burbank Town Center shoppers compared to general visitation patterns. An index of 200 means a shopper is twice as likely as the general population, that we see in the network, to shop or visit that location. It is important to note that affinity indices may be positively impacted by the proximity of the brand to the study location.

Shopper Average Age of Penetration % Shopper % College Shopper Origin Average % Shoppers Head of Center Name Index Households Degree or Population Household >$100,000 HHI Shopper Description with Children Higher Income Household Los Angeles-Long Beach- Anaheim, CA Metro Area 13,146,389 Average $87,778 29.1% 44.9 36.9% 32.0%

Burbank Town Center 2,204,853 Average $84,444 28.5% 44.6 32.9% 34.6%

Empire Center 2,285,368 Above Average $85,108 28.6% 44.5 32.0% 35.4%

Glendale Galleria 3,231,845 Average $82,176 26.9% 44.6 31.7% 35.6%

Northridge Fashion Center 1,201,583 Above Average $91,484 31.8% 44.6 38.1% 33.2%

The Americana at Brand 3,805,680 Average $90,544 30.8% 44.9 30.8% 39.2%

The Grove 9,547,864 Below Average $99,480 34.0% 43.9 25.9% 46.6%

The Paseo 5,033,945 Below Average $102,326 36.2% 45.4 31.5% 43.1%

Westfield Fashion Square 1,353,305 Average $104,081 34.8% 45.4 29.1% 43.6%

Westfield Santa Anita 2,521,124 Average $93,312 32.8% 45.2 35.7% 36.8%

Westfield Topanga 1,546,806 Above Average $114,764 39.8% 46.0 32.9% 44.5%

Average of Tested Centers 3,273,237 Average $94,772 32.4% 44.9 32.1% 39.3% Burbank Town Center has a healthy regional draw, but with the exception of Glendale Galleria, Burbank’s shoppers have a lower average household income than all other studied locations – and the average household income of Burbank’s shoppers are lower than that of the Metro area.

Time period of the data: June 2017 – May 2018. For this analysis, a total of 1,659,672 trips to the tested shopping locations were analyzed.

Average Less than 5 More than 50 Average 5 to 10 miles 11 to 20 miles 21 to 50 miles Distance miles miles Distance (mi) (<50mi)

Burbank Town Center 39.8% 32.3% 12.6% 7.1% 8.2% 74.0 7.6

Empire Center 36.1% 36.7% 12.5% 5.9% 8.8% 81.4 7.6

Glendale Galleria 31.5% 38.2% 14.6% 7.7% 8.0% 78.0 8.3

Northridge Fashion Center 41.2% 37.4% 10.9% 5.8% 4.7% 37.4 7.5

The Americana at Brand 31.5% 33.7% 15.3% 9.7% 9.9% 93.4 9.0

The Grove 35.0% 20.8% 10.6% 10.5% 23.1% 259.4 9.3

The Paseo 33.8% 22.3% 16.9% 14.9% 12.1% 109.9 10.6

Westfield Fashion Square 52.2% 27.9% 10.1% 4.2% 5.6% 61.9 6.3

Westfield Santa Anita 31.5% 33.9% 16.5% 11.2% 6.9% 57.8 9.5

Westfield Topanga 38.8% 28.2% 18.2% 6.9% 7.8% 72.4 8.3

Average of Tested Centers 37.1% 31.1% 13.8% 8.4% 9.5% 92.6 8.4

* Shopper Distance Traveled is measured as the distance from the center of the block group to the center, used to compare between centers and compute a weighted average distance. Note, this will not compare to traditional methods as it includes the distance traveled for people who have flown to the market (perhaps on business, or for leisure) and who are shopping the center. Can be used to see who is the biggest regional or national draw.

Average Duration Less than 15 minutes 15 to 60 minutes More than 60 minutes (minutes)

Burbank Town Center 16.3% 41.8% 41.9% 80.1

Empire Center 12.9% 47.8% 39.3% 77.1

Glendale Galleria 13.0% 41.3% 45.7% 85.1

Northridge Fashion Center 7.8% 34.9% 57.4% 99.5

The Americana at Brand 11.2% 37.1% 51.7% 92.7

The Grove 9.5% 35.7% 54.9% 96.8

The Paseo 15.0% 32.9% 52.2% 94.8

Westfield Fashion Square 10.7% 41.9% 47.4% 86.0

Westfield Santa Anita 5.9% 27.2% 66.9% 114.4

Westfield Topanga 8.1% 36.6% 55.3% 97.0

Average of Tested Centers 11.0% 37.7% 51.3% 92.4

* Visit duration as measured using mobile trips may be compared between centers, but will not compare to stated duration when captured using other sampling techniques, i.e. Shopper Intercepts, due to the frequency with which the device “pings” the towers; the number of times the same device was seen at a given center during the tested month.

Visited once Visited 2-4 times Visited 5+ times Average Number of Visits

Burbank Town Center 70.0% 25.2% 4.8% 1.8

Empire Center 68.8% 26.6% 4.6% 1.9

Glendale Galleria 67.3% 27.7% 4.9% 1.9

Northridge Fashion Center 66.0% 29.6% 4.4% 1.9

The Americana at Brand 71.1% 25.4% 3.5% 1.8

The Grove 76.6% 21.1% 2.3% 1.6

The Paseo 74.8% 21.9% 3.3% 1.7

Westfield Fashion Square 69.1% 26.5% 4.4% 1.8

Westfield Santa Anita 67.6% 27.7% 4.7% 1.9

Westfield Topanga 58.4% 31.6% 10.0% 2.3

Average of Tested Centers 69.0% 26.3% 4.7% 1.9

* Frequency is the number of times the same device was seen at a given center during the tested month. Note, this typically understates frequency given privacy and device refresh rates but can be used to consistently compare between centers.

Northridge, The Grove and the Westfield properties – are the only tested locations dominating (51%+ share) any specific block Captured Market Share groups, with Westfield Topanga and Westfield Santa Anita being - - - - 15 miles the dominate players in the market. Burbank Town Center Empire Center The lack of “owned” market in proximity to Burbank Town Center Glendale Galleria indicates significant cross shopping among the tested locations Northridge Fashion Center – but also the potential for Burbank Town Center to distinguish The Americana at Brand The Grove itself from its competitive set in order to retain its core market. The Paseo Westfield Fashion Square Westfield Santa Anita Westfield Topanga

Captured Market Share – if a block group delivers 51% or more of shopping trips to one center, that block group is said to be “captured” by that shopping center

No tested location, including Burbank Town Center, Captured Market Share “owns” any significant portion of Burbank Town Center’s core market area – an indication of the - - - - 15 miles potential for Burbank Town Center to fill an unmet Burbank Town Center need in the market. Empire Center Glendale Galleria Northridge Fashion Center The Americana at Brand The Grove The Paseo Westfield Fashion Square Westfield Santa Anita Westfield Topanga

The Paseo

Captured Market Share – if a block group delivers 51% or more of shopping trips to one center, that block group is said to be “captured” by that shopping center

Legend Top 75% of Trips