Rental Rates Reach Record-High Levels as Retailers Grow

Colliers International | Charleston, SC Q2 2015 Retail Research & Forecast Report

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Rental Rates Reach Record-High Levels as Retailers Grow

Key Takeaways

  • Retailer interest remains strong, supporting new construction throughout the market.
  • Declining vacancy and increasing development costs are driving rental rates to historically-high levels.
  • Demand for retail space exceeds existing inventory.
  • Residential growth and recent job announcements are driving suburban growth while tourism remains beneficial for downtown retailers.
  • Gross retail sales are up over the previous year in Charleston and Dorchester counties.

Market Conditions

A growing residential population, improving economy, favorable demographics and tourism are supporting significant growth throughout the Charleston, South Carolina retail market. The second quarter of 2015 ended with a vacancy rate of 5.1% for the market, down from 5.5% the previous quarter.  Absorption has been limited in recent quarters given the few options for space.  Retailers want to locate along prime retail corridors with high-traffic and visibility.  As space at these desirable locations becomes increasingly difficult to find, many retailers are backfilling vacant space or signing leases for new centers, which remain under construction.  New construction coupled with increasing land and development costs are yielding higher rental rates than those seen in the past.

Why Should Brokers #Mocial?

Mocial 101

This is a presentation @ElyseChubb and I gave to the @ColleirsIntl Retail Services Group in Denver at the #AmCon2015. What you will take away are three important points.

  1. First, this is not a fad and your clients and customers are ALL using it.  It is difficult to measure the ROI, however, we firmly believe it is more important to not be absent than it is to be present.  Decisions are made in #Mocial Land.  More about #Mocial Here.    Ever used Yelp, Urban Spoon, Open Table, Amazon, Pinterest, or Instagram to research a purchasing decision?
  2. How to build and protect your Brand.  First step is to Google yourself – what’s there? You Google your prospects and competitors.  Know hey Google you.  Get your digital house in order using the Checklist.  It’s hard to know where people will find you so you need to make sure it’s all clean – especially your Facebook Profile.
  3. Tips to help you engage.  I’m constantly asked how I find the time to post so much.  The reality is all the posts are posts that I’ve read first.  It only takes a fraction of a second to post it and with a couple tools I outlined.

Remember, if it is not Current, Relevant, and Interesting to you, it won’t be to others either.

You can download a copy here, or if you just want the slides they are here and please feel free to share it.  As Always we welcome your feedback and comments to let us know what you do.

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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.

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

#MOCIAL 2014 Why would a Broker go?

MOCIAL 2014

The excuses are so easy. I don’t have time for this social media crap because I’m a deal maker! MOCIAL is for those marketing types whose full time job is to run a twitter account or Facebook page. I’m just not nerdy enough to go. I’ve never needed it before.

If I’m completely honest, I wasn’t really sure what I was getting into when I registered for the conference other than a little work and a few days vacation in Austin, Texas. My good friend @Vinzani had been and said it was eye opening and I trust him. Austin is the live music capital of the world and y’all know how I feel about that!

Coastal Tides Retail Newsletter – August 2014

Coastal Tides Retail Newsletter – August 2014

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NewImage.png Charleston Once Again Named Top City in U.S.

The Holy City has done it again! For the second consecutive year, Charleston has been chosen as the “Top City in the United States and Canada” by Travel + Leisure’s readers. Just as impressive, the city was also picked as the second best in the world. Read More TINA stephens

TINA Stephens opens at 278 King Street

TINA Stephens™ announced the opening of its newest retail location

2014 Mid-Year Charleston Retail Market Report

National Tenants Compete for Limited Retail Space!

Q2-2014 CHS RETAIL Report TN

Key Takeaways:

  • Market vacancy rate is down to 6.32%. Downtown vacancy rate is just 3.56%. Rental rates averaged $17.72 per square foot for shop space with some tenants seeing rates as high as $77 per square foot in the Downtown submarket.
  • The retail market is becoming a landlord’s market as available retail space runs scarce.
  • The trend of recycling retail space continues. New development activity is picking up.
  • New restaurants make Charleston debut.
  • Job creation is driving the suburban retail market attracting grocers, restaurants and sporting goods stores.

DOWNLOAD LINK – Q2-2014 CHS Retail Market Report

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