Retailers Find New Home in Recycled Space
- The year ends strong with lower vacancy rates and higher asking rental rates.
- Vacated space is recycled by new retailers.
- Redevelopments and new developments continue.
- The market welcomes new retailers.
- Magnolia Park is sold shortly following completion.
- Grocery wars continue.
The Greenville/Spartanburg, SC retail market ended 2014 with a significant quarter full of construction, retailer announcements, declining vacancy and increasing rental rates. The total vacancy rate for the market dropped to 11.76% at the end of the year from 11.95% at the end of the third quarter of 2014. Asking rental rates increased throughout the year and averaged $10.69 NNN for shop space at year-end, up from the third quarter rate of $10.41 NNN. Average asking rental rates for shop space range from $7.00 NNN to $19.25 NNN. Asking rental rates for anchor space held steady at $5.01 NNN over the quarter and asking rental rates for junior anchor space increased to an average of $8.92 NNN from $8.68 NNN at the end of the third quarter.
Construction completed at Magnolia Park during the fourth quarter of the year. The redevelopment of the former Greenville Mall has been an entry point for several retailers to the South Carolina market. Nordstrom Rack, Toby Keith’s I Love This Bar and Grill, Dave and Buster’s, Yard House, Cheddars, Firebirds and Bad Daddy’s Burger Bar all chose Magnolia Park for their first South Carolina location. Additional retailers in the center include Cabela’s, Toys “R” Us and Babies “R” Us, DXL and Golfsmith. Shortly following completion, the 800,000 square foot mixed-use development was acquired by MetLife Core Property Fund for more than $155 million.
High retail occupancy and low interest rates motivated investors to acquire shopping centers. Big Shopping Centers USA purchased 85% interest in Crosspointe Plaza for $18.96 million as part of a venture with Realty Link LLC. The center is home to TJ Maxx, DSW, Joann Fabrics and Crafts, Burke’s Outlet, Jason’s Deli and Chipotle, among others.
The market is seeing considerable interest from regional and national retailers. Both downtown and suburban submarkets are experiencing activity as new restaurants and stores enter or expand throughout the market. Retailers looking for space in Downtown Greenville have options in several mixed-use developments while retailers seeking space in suburban submarkets are finding space in redeveloped centers.
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