Retail Market Continues to Move Forward

 

KEY TAKEAWAYS

• The Upstate, South Carolina retail market ended the first quarter of 2014 with a high occupancy rate of 88.7%.
• Cabela’s opens at Magnolia Park.
• New retailers choose the Upstate for first South Carolina locations.
• Downtown Greenville retail to be supported by new hotels and residential development.

 

CURRENT CONDITIONS

The Upstate, SC retail market ended the first quarter of 2014 with a low vacancy rate of 11.3%.  The Greenville, SC retail market continues to transform following a recent shift of focus from the Haywood Road to Woodruff Road retail corridor which attracted new retailers to the market and motivated the relocation of others.  A new mixed-use redevelopment was recently announced for Laurens Road, another transformation and advancement for Greenville.

The $100 million redevelopment announcement was made by Verdae Development and will be located on more than 100 acres stretching between Laurens and Woodruff Road.  The project is to include 30 acres if redeveloped future retail space and 70 acres of future residential and public green space.  The retail redevelopment consists of demolishing and redeveloping former Best Buy and Sam’s Club sites on Laurens Road.  The redevelopment is anticipated to benefit the area and attract new retailers to the market.

Downtown Greenville is growing and has several residential and hotel developments in the pipeline.  Additional residents and increased daytime population will support retail growth Downtown.  Multi-family growth will provide an opportunity for grocers as residents need more convenient options than those currently in the market.

RECENT ANNOUNCEMENTS

•  Cabela’s opened held its grand opening ceremony and is open to customers at Magnolia Park.  Magnolia Park, a 550,000 square foot retail center, is now 95% committed and should be complete by the end of 2014.  Magnolia Park has been an entry point for several retailers to the South Carolina market.  Nordstrom Rack, Toby Keith’s I Love This Bar and Grill, Dave and Buster’s, Yard House, Cheddars, Firebirds and Bad Daddy’s Burger Bar have all chosen Magnolia Park for their first South Carolina location.
• Five Guys is expanding into the Greer market later this year.  The fast-casual burger restaurant leased space in a new outparcel building at Suber Commons located at the intersection of Wade Hampton Boulevard and Suber Road.  This is the restaurants first Greer location, but seventh in the Upstate.
• ·         Freddy’s Frozen Custard and Steakburgers is entering the Upstate market with two locations, Woodruff Road in Greenville and along Highway 123 in Easley. 
• SC Telco Federal Credit Union purchased 1.1 acres at Verdae Boulevard and Rocky Slope and plan to locate a new branch at the site.
• Ruth’s Chris is opening a second Greenville location in the new 156-room Embassy Suites Hotel.  The hotel is to be located at the intersection of River Street and the Reedy River and is anticipated to open in 2016.
• Medcare Urgent Care Center opened its first Upstate location in Anderson at 801 North Fant Street.  The center is the company’s sixth clinic in the state with two centers in Charleston and three in Columbia.
• Zoes Kitchen opened a second Greenville store on Woodruff Road.  The restaurant’s first Greenville location was at 2123 Augusta Street.
• Copper Penny, a women’s clothing boutique, opened its first Greenville store in McDaniel Village Shopping Center at 1922 Augusta Road.  This is the Charleston-based retailer’s first franchise location.
• Kohl’s is under construction at the former K-Mart site in Greer.  The store, located at 1323 West Wade Hampton Boulevard, is anticipated to open this year.

 

IN THE MONTHS AHEAD

2014 is anticipated to bring new retailers to the Upstate market with the main focus being on Greenville.  As Magnolia Park nears completing and reaches full occupancy, more redevelopments are anticipated for the area backfilling recently vacated anchor space.  Older retail space provides opportunity for redevelopment and mix-use development.  Residential growth in Greenville’s downtown will likely attract grocers, more restaurants and clothing stores to the business district.

 

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

• Walgreens plans to anchor the new redevlopment of the former Millennium Music building at the intersection of Calhoun and King Streets.  Chipoptle is moving into 3,000 square feet adjacent to Walgreens.  The complex is anticipated to complete by year-end 2014 and may include a two-story restaurant on the second and third floors of the building along the Calhoun side.
• Harris Teeter opened in North Charleston at the Corner at Wescott Shopping Center.  The grocer is the anchor tenant of the 166,962 square foot center.  Marshalls relocated its North Charleston store to the shopping center where it occupies approximately 24,000 square feet of space.
• Five Guys Burgers and Fries expanded their Charleston footprint with a new 2,042 square foot location at the North Rivers Towne Center.  This will be the seventh Five Guys in the Charleston Market.

 

COLUMBIA, SC

• Nordstrom Rack is entering the Columbia market and opening its second South Carolina store. The retailer will backfill 34,000 square feet of space recently vacated by Barnes and Noble at Harbison Court along the Harbison Boulevard retail corridor.  Harbison Court is home to cotenants Ross Dress for Less, Pier 1 Imports, Golfsmith and Anna’s Linens.  The Columbia location and recently announced Greenville store are set to open in the fall of 2014.
• Destination XL opened its first Columbia location at 1005 Bower Parkway.  The clothing store, which caters to the fashion needs of men who wear extra large or larger, is also located in North Charleston.

 

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