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 – August 2014

Coastal Tides Retail Newsletter – August 2014

Coastal Tides Newsletter Header

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

Orr - Chubb Contact Block

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

Charleston Retail Occupancy and Rental Rates Near Record High

Image

KEY TAKEAWAYS

  • Retail activity was steady through the early months of 2014 which ended with a high occupancy rate of 92.9%.
  • Focus on Downtown Charleston results in record high occupancy rates.
  • Rental rates soar for King Street shop space.
  • Corner at Wescott Shopping Center in the Summerville submarket delivered.
  • Redevelopments underway on Upper King Street in Downtown Charleston.

CURRENT CONDITIONS

2014 is looking bright for the Charleston, South Carolina retail market despite a slight increase in the market vacancy rate to 7.14% at the end of the first quarter of 2014 from the year-end 2013 rate of 6.98%.  The increase is a result of several big box closings throughout the suburban submarkets.  The largest closure was K-Mart closing its doors at

Q4 2013 Colliers North American office report release

20140305-223009.jpg

In Q4 2013, employment in the primary office-using sectors in the U.S. surpassed the pre-recession peak set in July 2007. Canada’s private sector continues to drive job growth and office demand.

The North American office vacancy rate decreased by 12 basis points to 13.56% in Q4 2013. The U.S. vacancy rate dropped below 14% for the first time since Q3 2008. The North American vacancy rate will likely continue to drop at a modest rate due to more efficient usage of space by tenants.The Canadian vacancy rate will likely increase slightly but remain low, with some tenants vacating older Class A and B buildings for newly completed space.

70 of the 87 markets tracked by Colliers posted positive absorption in 2013. Dallas led by a wide margin, followed by Houston, Central New Jersey, Boston and Atlanta. Absorption in the main intellectual capital, education and energy (ICEE) markets totaled nearly 20 million square feet, compared with 11.4 mil. sq. ft. in the main finance, insurance and real estate (FIRE) markets, although many FIRE markets, including Midtown Manhattan, Chicago, Charlotte and Miami, posted significant positive absorption during the year.

Construction activity increased slightly in 2013, but speculative construction remains concentrated in the strongest markets and submarkets. Houston alone accounts for about 12% of construction under way in the 87 markets tracked by Colliers, followed by Toronto, Calgary, Downtown Manhattan, Washington, DC and Midtown South Manhattan.

Office transaction volume totaled nearly $107 billion in 2013, the highest annual total since 2007. Given the shortage of available assets and/or rich pricing in gateway markets, as well as the broadening economic recovery, investor demand is spreading to secondary and tertiary markets that were out of favor earlier in the cycle. Transaction volume is poised to increase further in 2014 given improving fundamentals and the large amount of capital targeting real estate, including foreign sources.

 DOWNLOAD LINK