Research & Forecast Report
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Q3 2014 | RETAIL GREENVILLE, SOUTH CAROLINA RESEARCH & FORECAST REPORT Retail Development Heats Up KEY TAKEAWAYS > The vacancy rate for the Greenville/Spartanburg, SC retail market was down to 11.98% at the end of the third quarter of 2014. Rental rates averaged $10.74 NNN for shop space in the market. > Redevelopments of old shopping centers and the development of new centers are on the rise. > Downtown residential and daytime population growth is driving the retail market in the MARKET INDICATORS Central Business District and surrounding areas. Q3 2014 Forecast > Retailers continue to choose the Upstate for their first South Carolina location. > Magnolia Park prepares for new openings. VACANCY > New retailers backfill vacant big boxes. NET ABSORPTION CURRENT CONDITIONS RENTAL RATES The Greenville/Spartanburg, SC retail market ended the third quarter of 2014 with a vacancy rate of 11.98%, down from 12.40% at mid-year 2014. The market is receiving significant CONSTRUCTION attention from national retailers, many of which are new to the Upstate and South Carolina. Gabriel Brothers and Tijuana Flats, among others, have chosen Greenville for their first South DOWNTOWN RESIDENTIAL Carolina location. Retailers are backfilling vacant big boxes attributing to the decline in vacancy. 1 UPDATE Gabriel Brothers and Conn’s have backfilled vacant big box spaces at The Gallery located at Downtown Greenville has 583 Haywood Road that were formerly occupied by Steve and Barry’s and Babies “R” Us. several multifamily residential Redevelopments of older, less desirable suburban shopping centers are gaining momentum developments in the works. as more retailers show interest in the market. Magnolia Park, a redevelopment of the former 1. Stone + Main will offer Greenville Mall, is nearing completion and has brought several new retailers to the market 241 apartments and 21,175 including Nordstrom Rack, Dave & Busters and Toby Keith’s I Love This Bar. square feet of retail space. 2 Construction is to begin by Q3 2014 MARKET STATISTICS year-end 2014 and complete by mid-year 2016. VACANCY RATES 18.3% AVERAGE ASKING RENT SHOP SPACE 2. South Ridge, at Church Street $19.00 12.0% and University Ridge, will offer $16.28 10.7% $16.05 $15.45 360 apartments and 16,000 3 square feet of retail space. $10.74 3. Fountains Greenville will be 1.9% located at 210 E. Broad Street. 1.1% The project will offer 210 DOWNTOWN HAYWOOD WOODRUFF PELHAM MARKET apartments and construction is HAYWOOD PELHAM WOODRUFF set to begin in the first quarter DOWNTOWN MARKET of 2015. Photo credit: Upstate Business Journal via The Beach Company and Proffitt Dixon Partners www.colliers.com/southcarolina RESEARCH & FORECAST REPORT | Q3 2014 | RETAIL | GREENVILLE Downtown Greenville is experiencing heightened retail activity ONE GREENVILLE | 1 N. Main Street following improvements in the office market and an increase in planned residential developments. Downtown Greenville is transforming into a live, work and play environment, appealing to a mix of retailers. > Within the past year national retailers Anthropologie and Brooks Brothers have opened stores at ONE in Downtown Greenville. Orvis and Vann and Liv have planned their grand openings at ONE for November 1st. > Bevello, a Raleigh-based women’s clothing boutique is open at 123 N. Main Street. Source: 4240 Architecture > Responding to the growing daytime and residential population, MAGNOLIA PARK | 1025 Woodruff Road Cianciolas, a deli-convenience store offering sandwiches, hot food, produce and grocery staples, plans to open on College Street near N. Main Street. > Universal Joint, a Georgia-based neighborhood bar and restaurant is open at 300 Stone Avenue, the site of a former gas station. The restaurant offers outdoor patio seating and items such as craft beers, tacos, burgers and salads. > Methodical Coffee will open by year-end at the Bank of America Plaza. The coffee shop, which aims to bring a city vibe, will occupy 875 square feet on the ground floor and include a 400 square foot mezzanine balcony. Source: Menin Development Rental rates are up for all types of retail space, anchor, junior anchor and shop space. Anchor space asking rental rates averaged $4.36 GARLINGTON STATION | 1143 Woodruff Road NNN at the end of the third quarter, up from $4.14 NNN at mid-year 2014. Asking rental rates for junior anchor space averaged $7.98 NNN, up from $7.84 NNN at mid-year 2014. Shop space asking rental rates averaged $10.74 NNN at the end of the third quarter, up from $10.03 NNN at mid-year 2014. The increased rental rates are the result of declining availability of retail space and have the potential to support future development in the market. SUBURBAN REDEVELOPMENTS Source: Avison Young Redevelopments of dated shopping centers and dark big boxes are gaining momentum throughout the Greenville suburbs. As the Upstate HAYWOOD ROAD RETAIL | 586 Haywood Road population grows and job creation continues, retailers are being drawn to the region in hopes of meeting the growing demand for retail services. The recent shift of retailers from Haywood Road to Woodruff Road left shopping centers and big box spaces available, providing redevelopment opportunities. > Magnolia Park continues to take shape along Woodruff Road and is nearing completion. Nordstrom Rack, Pier 1 Imports and Yard House are open to customers. Tuscanos Brazilian Grill, Fresh 2 Order and Dave & Busters remain under construction and expect Source: Carolina Holdings, Inc. to complete by year-end 2014. Toby Keith’s I Love This Bar is under construction and plans to open early in 2015. CVS | 2102 Augusta Street > Freddy’s is under construction across the street from Magnolia Park and plans to open early in 2015. > Several other Woodruff Road redevelopments are in the works. Garlington Station at 1143 Woodruff Road is being redeveloped. The 23,197 square foot center is adjacent to the Shops at Greenridge. An outparcel development is 100% preleased to Tijuana Flats and Stanton Optical. Across the street from the center is 25 Garlington, a new 5,565 square foot center under construction with space preleased to Chicken Salad Chick. Source: www.magnoliapark.com www.colliers.com/southcarolina RESEARCH & FORECAST REPORT | Q3 2014 | RETAIL | GREENVILLE Anchor Space Junior Anchor Space Shop Space Building Count Market Size Vacancy Rate Available Asking Rent Available Asking Rent Available Asking Rent Belton/Honea Path 5 260,281 22.78% 35,000 $3.95 0 - 24,300 $4.18 Boiling Springs 8 605,386 32.78% 129,000 $4.00 0 - 69,452 $9.14 Cherrydale/TR 5 453,054 13.94% 0 - 22,600 $12.00 40,556 $12.00 Clemson Boulevard 13 942,340 15.12% 118,749 - 0 - 23,772 $8.76 Clemson/Pendleton 7 292,637 29.41% 34,928 - 0 $7.00 29,890 $9.59 Downtown 3 169,726 1.13% 0 - 0 - 1,915 $19.00 Duncan/Lyman 4 219,302 27.43% 44,000 $4.00 0 - 16,161 $10.11 Easley 4 355,859 2.25% 0 - 0 - 8,000 $11.00 East Side 14 950,264 19.06% 82,960 - 26,142 - 71,976 $11.82 East Spartanburg 14 635,341 18.08% 34,928 - 15,400 - 64,566 $9.37 Greer 9 729,617 10.04% 0 - 28,158 - 45,125 $12.06 Haywood/Pleasantburg 16 1,392,071 10.68% 69,068 - 29,300 $9.00 50,238 $16.28 Highway 81 Corridor 3 175,362 1.73% 0 - 0 - 3,025 $7.00 Inman/Lyman 4 222,836 24.07% 34,928 - 17,500 $5.25 1,200 $11.00 Mauldin 7 467,788 3.35% 0 - 0 - 15,669 $13.31 Oconee County 8 741,796 4.50% 0 - 22,400 $5.00 11,000 $9.22 Pelham Road 9 326,825 18.33% 38,003 - 0 - 21,890 $15.45 Pickens/Liberty 5 205,758 4.80% 0 - 0 - 9,880 $12.00 Powdersville 2 142,584 0.00% 0 - 0 - 0 - Simpsonville 11 740,745 4.65% 0 - 0 - 34,425 $13.36 South Side 4 159,418 2.82% 0 - 0 - 4,500 $9.00 West Anderson 20 736,392 18.68% 64,396 $3.00 18,081 $8.50 55,070 $6.93 West Spartanburg 16 1,030,187 17.97% 97,857 $5.84 11,588 $13.50 75,646 $12.63 White Horse Road/Berea 10 777,987 3.99% 0 - 0 - 31,057 $8.82 Woodruff Road 35 1,622,032 1.94% 0 - 0 - 31,458 $16.05 Woodruff/Moore 3 145,400 0.00% 0 - 0 - 0 - Market 239 14,500,988 11.98% 783,817 $4.36 212,422 $7.98 740,771 $10.74 > The former Wendy’s site at 586 Haywood Road is being redeveloped. RECENT ANNOUNCEMENTS Construction is underway on the 6,000 square foot strip center, Greenville is booming with existing retailer expansions and new retailers which can accommodate two tenants, and is anticipated to complete entering the market. by early 2015. > Marco’s Pizza is expanding its presence through the Carolinas. > A shopping center along Augusta Street is undergoing renovations. Recently, the pizza chain opened its location at 1120 N. Pleasantburg Upon completion, the renovated center at the northeast corner of Drive and plans to open another Greenville location in by year-end Augusta Street and East Faris Road will be home to Radio Shack and 2014. AT&T and have room for another tenant. Radio Shack will be > QuikTrip is expanding its Carolina division and is currently under relocating from its former location across the street, which is being construction at Woodruff Road and Prado Way. The 5,700 square redeveloped into CVS. The pharmacy will be located on the site of a foot store is expected to open by year-end 2014.