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.

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

Orr - Chubb Contact Block

Coastal Tides Newsletter July 2014

Coastal Tides Newsletter Header

Coastal Tides Retail Newsletter, July 2014

Tuesday Morning Logo

Tuesday Morning opens new store in Mount Pleasant

The Dallas-based retailer of closeout housewares and decor relocated to 680 Long Point Road, adjacent to PetSmart, after leaving its store on Coleman Boulevard about a year ago to make way for the Southern Seasons outlet.

Dick's Sporting GoodsNordstrom Rack

Nodstrom Rack, Dick’s Sporting Goods plan to replace former Kmart in Mount Pleasant

Design plans submitted to the town of Mount Pleasant reveal a new facade and a restructuring of the shopping center’s five parcels. The former Kmart superstore, which closed in January, will be split into two storefronts designed for Nordstrom Rack and Dick’s Sporting Goods.

Ruth's Chris

Ruth’s Chris Steak House to open in hotel near Charleston City Market

After an exhaustive search, Ruth’s Chris Steak House has selected

Coastal Tides Retail Newsletter – June 2014

Coastal Tides Newsletter Header

 

Retail Market is Back in Business as RECon 2014 Wraps Up

By the end of the day Tuesday it was clear that the industry’s expectations for the 2014 RECon show had been fulfilled-the retail real estate market is once again vibrant, with tenants signing new leases, lenders clamoring to offer debt for new acquisitions and multiple investor classes looking to buy retail assets, wherever they may find them.

Read More

More From ICSC RECon 2014

The Changing Dynamic Between Retail Landlords and Tenants

Read More

How to Turn Around a Challenged Center Around

Read More

Don’t Overthink It; Do the Retail Deal

Read More

Large Box Shifts to Smaller Formats

Read More

 Outdoor retailer Gander Mountain picks

COLLIERS INTERNATIONAL | SOUTH CAROLINA YE-2013 CHARLESTON RETAIL MARKET REPORT

Bluffton Commons Publix

COLLIERS INTERNATIONAL | SOUTH CAROLINA YE-2013 CHARLESTON RETAIL MARKET REPORT

Below is a download link to my Year End 2013 Market Report.  If you have any questions or want to dig deeper on any topic please Call Me, 843-608-8677, or email me John@JohnOrr.com

COLLIERS INTERNATIONAL | SOUTH CAROLINA
YE-2013 CHARLESTON RETAIL MARKET REPORT

High Occupancy Rates Spur New Construction

Key Takeaways
·         King Street continued to excel with new retail tenants including C Wonder, H&M and Madewell opening stores in downtown Charleston.
·         Increased demand for retail space spurred new construction and redevelopments throughout the Charleston region.
·         Average asking rental rates continued to rise for shop space on King Street and in high growth suburban areas.
·         Suburban submarkets encountered the “Grocery Wars” as Piggly Wiggly stores sold and reopened as Bi-Lo or Harris Teeter.

Fourth Quarter 2013 Recap
The Charleston retail market continued to improve since mid-year 2013 with increased occupancy rates and