Q2-2014 Columbia Retail Market Report – Recycling Retail Space

Recycling Retail Space

 

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KEY TAKEAWAYS

• Columbia, SC draws national retailers’ attention.  Anthropologie and J. Crew announce plans to enter the market.
• Activity is on the rise despite flat vacancy rates.
• Planned student housing developments in Downtown Columbia have the potential to support more retailers.

 

CURRENT CONDITIONS

The second quarter of 2014 ended with a vacancy rate of 8.37%, slightly higher than the first quarter 2014 vacancy rate of 8.28%.  The small, yet negative, net absorption was the result of Piggly Wiggly closing its Northeast Columbia location and does not accurately depict market conditions.  The market continues to excel and attract new national retailers to the area.

The most recent announcements came from national retailers, Anthropologie and J. Crew, which will be occupying space recently vacated by Books-A-Million at Trenholm Plaza in the Forest Acres submarket.  The closure is one of three bookstores to close in Columbia throughout the past year due to heightened competition from e-books and online retailers, such as Amazon.  The vacated space paved the way for new retailers to enter the market, recycling retail space before having an adverse effect on vacancy rates.

• Nordstrom Rack will occupy the former Barnes & Noble space in Harbison Court along Harbison Boulevard.
• 2nd & Charles, a used- book retailer, occupied the former Books-A-Million space along Harbison Boulevard.

With several student housing and residential developments planned for Downtown Columbia, the residential population may increase by 3,000 in the next three to five years.  As The Hub welcomes residents for the Fall 2014 semester, the population is already growing and has the potential to support new retailers in Downtown Columbia and surrounding submarkets.  Restaurants, grocers and clothing boutiques will be in high demand as residents look for ways to dine, entertain and shop.  The Hub offers retail space for lease on the first floor and basement of the building.

• Responding to the need for more grocers, Kroger is likely to anchor the Capital City Stadium redevelopment Downtown.  Atlanta-based Bright-Meyers expects to begin the new project in early spring 2015.
• Bourbon, a Cajun-influenced restaurant and bourbon-based cocktail bar, recently opened along Main Street.
• Pitas Mediterranean restaurant recently announced plans to open its second Columbia location in the Bank of America Plaza, 1901 Main Street, providing another food option for Main Street visitors and residents.

 

RECENT ANNOUNCEMENTS

• The Target Center, an approximately 200,000 square foot shopping center along Two Notch Road in Northeast Columbia, was sold for $11.3 million.  The center is home to major tenants Target, Dick’s Sporting Goods, Michael’s and Kirkland’s.
• Academy Sports opened its second Columbia location in the Harbison/St. Andrews submarket.  The new 72,000 square foot store is located at Park Terrace Drive and Bower Parkway on the former site of a staples anchored development.
• Hickory Tavern, a Charlotte-based restaurant with a full bar and menu and focus on sports, is currently under construction and plans to open this fall in the space behind Urban Outfitters in the Vista.
• Sizzle, a bacon-themed restaurant, opened on Harden Street in Five Points next to Pawleys Front Porch.
• Black Bean Co., a Charleston-based chain serving healthy menu options, opened its first Columbia location in the  Vista at 701 Gervais Street.
• Chicken Salad Chick opened its second Columbia location along Harbison Boulevard.  The fast-casual restaurant’s first Columbia location was in Lexington.
• Palmetto Moon opened its first Columbia location in the Village at Sandhill in Northeast Columbia.
• Retail space vacated by Sears, which did not renew its lease in Columbiana Centre, will be occupied by Belk.  The department store is spending $6.1 million to expand its men’s apparel and shoe departments into the former Sears space.

 

 

 

IN THE MONTHS AHEAD

The retail market in Columbia, SC is anticipated to further improve and attract new tenants.  Any vacated space will likely be occupied quickly as vacancy rates remain low and space becomes difficult to find in prime retail corridors.  Rental rates are holding steady, but anticipated to increase as vacancy rates continue to decline.  Downtown retailers will benefit from the growing residential population.  New development and redevelopments will become necessary for growth in future quarters as existing inventory nears full occupancy.

 

 

 

AROUND THE STATE

South Carolina’s growing population and economy continue to draw new retailers to the market while providing a healthy business environment for the growth of existing retailers.

 

CHARLESTON, SC

• Tourism continues to drive the retail market.
• Expansions by companies, such as Boeing and JBE Inc., are pushing development and redevelopments of centers in the suburban submarkets.
• Gander Mountain, outdoor gear and apparel retail shop, plans to open their first South Carolina store in North Charleston.  The store will be located in a redeveloped 40,000 square foot space at the Promenade at Northwoods.
• Bass Pro Shops Outdoor World is opening a Charleston location in 2015.  The store is to be located at the intersection of Interstate 26 and Northside Drive in North Charleston.

 

GREENVILLE, SC

• Bass Pro Shops Outdoor World is opening a location between Greenville and Spartanburg on Interstate 85 at Highway 101.
• Orvis, an outdoor gear and apparel retailer, plans to open its second South Carolina at ONE Greenville.
• PDQ’s second South Carolina location is under construction at 3906 Pelham Road.  The first location is in Columbia, SC across from Cross Hill Market.
• Fresh To Order (f2o) is opening its first South Carolina location at Magnolia Park.
• Wal-Mart Neighborhood Market is growing its presence in the Upstate and announced plans to open a Spartanburg location.  The new 41,000 square foot store will anchor a planned 55,000 square foot shopping center in Cedar Springs.

 

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