Demand Exceeds Supply, Drives Development of New Retail Space

2014 Colliers Charleston SC Retail Report

Demand Exceeds Supply, Drives Development of New Retail Space

COLLIERS INTERNATIONAL | SOUTH CAROLINA
Q4-2014 CHARLESTON RETAIL MARKET REPORT

KEY TAKEAWAYS
· Downward trending vacancy rate. Rental rates steadily increasing.
· New construction and redevelopments are strong throughout the market.
· Grocery wars continue.
· Grocery stores and outdoors sporting goods stores anchor new suburban developments.
· Tourism drives downtown growth. Suburban growth is driven by job creation and population growth.
· 2015 likely to bring new retailers and continued success.

CURRENT CONDITIONS
2014 was a significant year for the Charleston, SC retail market, full of new construction, redevelopments and new tenants opening or announcing plans to enter the market. Vacancy rates declined and rental rates climbed, especially along downtown’s King Street, throughout the year. The fourth quarter ended with an overall vacancy rate of 5.02% for the market, down from the third quarter vacancy rate of 5.44% and year-end 2013 vacancy rate of 6.91%.

Shop space asking rental rates averaged $19.51 NNN at year-end 2014, up 3.5% from the third quarter, largely due to spikes in rental rates along King Street. Tenants along King Street are seeing rates vary from $30 to $70 NNN, with the lowest rates along Upper King Street and highest rates along Middle King Street. Asking rental rates for suburban shop space averaged $16.70 NNN, holding steady over the third quarter average, but increasing from $16.34 NNN a year ago.

Top 10 steps to prepare for an ICSC Conference

Free How-To ICSC Guide

Here we are, two weeks out from the ICSC show and it’s time to “prepare”.  The bad news is you’re late already. The good news is you can do better next time if you follow these simple steps.

1.) Prepare your calendar a year in advance. Block the time off now. This is especially important if you attend multiple shows each year. One year I scheduled a spring break trip out of the country and the worst part was I had committed to moderate a panel. Many thanks to @Vinzani, @ElyseChubb, @JAugustan, @BooneCRE, and @ColliersIntlSC for saving me.

2,) Decide why you should go. Should you meet with landlords or should you meet with tenants or a combination of both. If you don’t have a good reason to go such as a project or site, then don’t go because its a waste of everyone’s time.

3.) Create a list of people you want to meet and why. Don’t expect to walk away with an approved deal or a signed lease. Set realistic expectations.

Coastal Tides Retail Newsletter | October 2014

Coastal Tides Retail Newsletter | October 2014

Coastal Tides Newsletter Header

Charleston City Council approves one-year moratorium on new bars in the peninsula’s entertainment district

A standing-room-only crowd packed City Council Chambers, where the group voted 9-3 to approve the moratorium along King Street, parts of Meeting and East Bay streets, and the Market area.
Charleston City Council has approved a one-year moratorium on the opening of new bars in the city’s entertainment district that can stay open past midnight.

Midnight Closing

 

 

 

 

 

 

 

 

 

 

 

 Nordstrom Rack to open in old East Cooper Kmart center

Nordstrom Rack, a popular off-price apparel chain owned by Seattle-based Nordstrom Inc., confirmed plans Wednesday to open a store in the former Kmart shopping center in Mount Pleasant.

Nordstrom Rack

 

 

 

 

 

 

Office Depot is downsizing at Westwood Plaza

Westwood Plaza at Sam Rittenberg Boulevard and Ashley River Road soon will have two big holes to fill when its anchor tenant Office Depot moves into a smaller space in the retail center next month.

Coastal Tides Retail Newsletter – September 2014

Coastal Tides Retail Newsletter – September 2014

New shopping centers planned in Mount Pleasant, Summerville will draw big retailers

Horizon Square

New retail centers planned in Mount Pleasant and Summerville are expected to bring major big chains to the Charleston market for the first time.

Ashley Landing owner buys Northbridge Piggly Wiggly

Ashely Landing Ar

The last time Ashley Landing saw any major updates was just after Hurricane Hugo, when its name was changed from Ashley Plaza Mall.

Chipotle opening downtown location by year’s end

Top 10 steps to being a GREAT Tenant

Tenant with Checklist

In order to be a great Tenant keep these 10 things in mind.  We all know human nature is this:  As soon as you decide to open the store or purchase the franchise the first thing to do – and the only thing you really can do – is drive around and call all the numbers on all the signs in all the windows. WHOA there.  Cool your jets turbo.  You need a strategy, a plan of action.  Ready, Shoot, Aim, gets really expensive and just won’t work in the long term.  If you look at the great tenants out there like WalMart, Korger, AutoZone, they all have teams of professionals and experts.  Sure, most of their people are employees, but you can get the same expertise without a real estate department.  You will need a team and this list will get you headed in the right direction.

Top 10 steps to being a GREAT Tenant Rep broker.

In this weeks installment of the Tenant Tips will discuss how to be a great Tenant broker.

Top 10 Steps

Image courtesy of Master isolated images at FreeDigitalPhotos.net

This is my Top 10 list to discuss how to be a great Tenant representative broker. On a macro level the Tenant Rep always looks out for the best interests of the Tenant. Remember the Tenant comes first, not your listings, not just the easy sites, and never the fee. Ask yourself “what would I want done if I was the Tenant”? Every tenant has a specific set of criteria for a location. While the criteria may vary from tenant to tenant the process of being a great Tenant Broker does not.

Top 10 steps to being a great Tenant Rep broker.