q1 upstate, south carolina retail market report · retail tenant staff report gsa business...
TRANSCRIPT
Number of Buildings...........................................................9,578Market Size (SF)........................................................82,395,684Overall Vacancy Space (SF).........................................5,574,602Overall Vacancy (%).............................................................6.8%Direct Vacancy (SF).....................................................5,283,461Sublease Vacancy (SF)...................................................291,141Net Absorption...............................................................(78,346)Average Asking Rental Rate ($/SF/YR)...............................$9.57
Vacancy Rate Net Absorption Construction Asking Rents
UPSTATE, SOUTH CAROLINA RETAIL MARKET REPORT
Total Population......................................................1,375,759 Total Households.......................................................537,556 Median Age....................................................................38.3 Total Labor Force......................................................640,411 Unemployed...............................................................57,015 Unemployment Rate......................................................8.9% Source: SC Dept. of Employment & Workforce & ESRI Business Analyst
LOCAL UPSTATE ECONOMY RETAIL MARKET TRENDS
RETAIL MARKET OVERVIEWBy: Bill SimsRetail Division Broker
Spring has finally arrived in 2013 and as the temperature warms up, so does activity level in the retail sector. Downtown Greenville continues to be the hotbed for activity with Anthropologie opening its first South Carolina store in Project One. Several new restaurants opened, including Rare Steakhouse and Sip Wine Bar on Piazza Bergamo, and Roost in the newly-redesigned NOMA Square. Hotels continue to announce development plans with Embassy Suites leading the way in the Riverplace development and JHM Hotels announcing they will build a new hotel at the corner of Spring Street and E. Washington.
The Haywood Road corridor has seen the City of Greenville complete the burying of underground utilities and freshening the look of the street lighting. Crosspointe Plaza is undergoing a facelift as Joann Fabrics is under construction with DSW Designer Shoe Warehouse and TJ Maxx soon to follow.
Woodruff Road has seen its fair share of activity with Krispy Kreme opening its second Greenville location and Paul Mitchell Salon School starting construction. Magnolia Park continues grabbing newspaper headlines with numerous new restaurant and retail announcements. Construction on a new multi-tenant retail building that will be anchored by Firebirds Wood Fired Grill has commenced beside Rooms To Go.
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Upstate Market 1 / Submarket Data 2 / Activity 3 / News 4-6 / Retail Division 7 / About Us 8 / Resources 9
Q1 2013 Vacancy
6.8%
Q1 2013 Average
Rate$9.57
Q12013
6.0%
6.5%
7.0%
7.5%
8.0%
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Overall Vacancy (%)
$9.00
$9.50
$10.00
$10.50
$11.00
4Q11 1Q12 2Q12 3Q12 4Q12 1Q13
Average Asking Rental Rate
SUBMARKET DATA
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
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GREENVILLESubmarket # of Bldgs. Total RBA (SF) Vacant (%) Total Net Absorption (SF) Total Average Rate
Greenville (All Submarkets) 3,856 35,036,723 5.6 (8,380) $10.74
SELECT GREENVILLE RETAIL SUBMARKETS*
Augusta Road 248 1,731,830 6.0% 10,553 $11.41
Laurens, Haywood and Congaree Road Corridor
413 7,298,717 5.1% 39,318 $12.38
Downtown Greenville 95 675,996 5.0% (7,373) $15.91
Woodruff Road/Butler Road 367 4,606,985 3.6% (17,503) $13.44
Pelham Road 150 1,509,899 10.2% 616 $13.59
Simpsonville 390 3,481,982 4.2% (27,455) $11.02
Wade Hampton/Greer 576 4,810,668 6.4% 15,324 $8.37
*Above is a sampling of the major retail submarkets in the Upstate. For additional market data please email [email protected].
SPARTANBURGSubmarket # of Bldgs. Total RBA (SF) Vacant (%) Total Net Absorption (SF) Total Average Rate
Spartanburg (All Submarkets) 2,975 23,071,578 7.8% (71,750) $8.91
SELECT SPARTANBURG RETAIL SUBMARKETS*
East Side/Downtown 539 5,287,636 9.8% (23,071) $9.95
West Side 443 6,012,410 6.4% 9,077 $10.25
Boiling Springs/Hwy 9 585 3,796,956 5.3% (23,671) $8.25
ANDERSONSubmarket # of Bldgs. Total RBA (SF) Vacant (%) Total Net Absorption (SF) Total Average Rate
Anderson (All Submarkets) 1,481 13,057,940 7.1% 29,366 $8.09
SELECT ANDERSON RETAIL SUBMARKETS*
Hwy 81 & Clemson Blvd. 366 5,279,974 4.8% 3,616 $11.61
Pickens 663 5,665,659 7.6% 45,877 $10.16
SAMPLING OF TOP SALE TRANSACTIONS
SAMPLING OF TOP LEASE TRANSACTIONS
*NAI Earle Furman Transaction
UPSTATE RETAIL ACTIVITY
NEW TO THE MARKET
Downtown GreenvilleSully’s Steamers Café Rare Steakhouse on the Piazza
Woodruff Road, GreenvilleChuy’s Tex-Mex (coming soon)
AndersonMen’s WearhouseAspen Dental
Downtown SpartanburgWild Ace Pizza & Pub
Graph Source: CoStar Property
ABSORPTION & DELIVERIESPast 7 Quarters
VACANCY & RENTPast 7 Quarters
Vaca
ncy
Rat
e P
erce
ntag
e$10
$10
$10
$10
$9
$9
$9
Pric
e in
Dol
lars
per
Uni
t 7.0%
6.9%
6.8%
6.7%
6.6%
6.5%
6.4%
6.3%
6.2%
6.1%
2011 2011 2012 2012 2012 2012 20133Q 4Q 1Q 2Q 3Q 4Q 1Q
Average Rental Rate Vacancy Rate
‘11 3Q ‘11 4Q ‘12 1Q ‘12 2Q ‘12 3Q ‘124Q ‘131Q
0.4
0.3
0.2
0.1
0.0
(0.1)
(0.2)
(0.3)
(0.4
(0.5)
Milli
ons
SF
Net Absorption Deliveries
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
Buyer: Size (SF): Submarket: Address/Building: Price:
Investor 57,130 SF Greer Pelham Place $3,750,000
*Investor 10,607 SF Clemson Clemson Station $1,700,794
*Investor 6,080 SF Anderson 3435 Clemson Blvd. $700,000
Tenant: Size (SF): Submarket: Address/Building:
*O’Reilly Automotive 7,000 SF Fountain Inn 321 S. Main St.
*R3 Motorcars 6,000 SF Easley 1011 S. Pendleton St.
Compadres Mex Mex Grill 4,857 SF Spartanburg/West Side 8161 Warren H Abernathy Hwy.
*A+ Rentals 3,800 SF Fountain Inn 1122 N. Main St.
*Hollipops Toy Store 2,800 SF Simpsonville 2531 Woodruff Rd.
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RETAIL MARKET OVERVIEW continued from page 1
Wal-Mart opened a new location in Powdersville on Hwy. 153 and recently started construction for a new store in Pickens. They also have their smaller neighborhood concept under construction across from Wade Hampton High School in Greenville.
The convenience store sector received big news at the end of the first quarter when the nation’s largest operator, 7-Eleven, announced it had acquired Hickory Point and all of their Upstate locations. The Hickory Point stores will be rebranded during the coming months. QuikTrip continues expanding their footprint in the Upstate by starting construction on their latest store to be located at the intersection of S. Pleasantburg and I-385.
Summer is just around the corner and it appears the second quarter of 2013 will see continuous progress in the retail sector.
UPSTATE IN THE NEWS
NOMA SQUARE NABS FIRST RETAIL TENANT
Staff Report
GSA Business
Published March 12, 2013
JHM Hotels Inc. announced Tuesday
Kilwins Chocolates and Ice Cream will be
its first retail tenant in Noma Square.
Noma Square, or the North end of
Main Street, is undergoing a major
renovation in conjunction with the Hyatt
Regency Greenville’s renovations. The
Hyatt Regency Greenville is owned by
Greenville-based JHM Hotels.
DJ Rama, president of JHM Hotels,
announced plans last year for three retail
tenants and a restaurant to open in
Noma Square as part of efforts to recruit
visitors, pedestrians and activity to North
Main in downtown Greenville.
Roost, a new farm-to-table restaurant,
opened there in January.
Kilwins plans to open a franchise in Noma
Square this summer. Kilwins makes and
distributes chocolate, fudge, caramel,
ice cream and other homemade items
through a network of franchised retail
stores.
“Kilwins is a great addition to Noma
Square and will be a destination retailer
for residents and visitors,” said Greenville
Mayor Knox White in a news release.
“They will serve as another anchor to
the continued growth of the North Main
area.”
Ashley Adams and her parents own the
local Kilwins Chocolates & Ice Cream
franchise, which will be managed by
Ashley Adams. CBRE — The Furman
Co. represented the landlord in this
transaction.
“Having graduated from Clemson, I know
Greenville well and I am thrilled to be
opening a business in such a dynamic
downtown area,” Adams said in a news
release. “Local residents and visitors alike
won’t soon forget the truffles, candy,
fudge, caramel and ice cream, especially
the ice cream. Kilwins and Greenville will
be a perfect match.”
Founded in 1947, Kilwins Chocolates
Franchise Inc. is headquartered in
Petoskey, Mich.
The Hyatt Regency Greenville opened
on North Main Street in 1982. It was
previously owned by Hyatt Hotels Corp.
before JHM purchased it in 2011. Owned
by the Rama family, JHM was founded
by H.P. Rama in 1973. The privately held,
owner-operator has more than 40 hotels
across brands such as Marriott, Hilton,
Hyatt and Starwood.
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
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UPSTATE IN THE NEWS
DEVELOPMENT CONTINUES AT MAGNOLIA PARK
By Liz Segrist
Published March 4, 2013
GSA Business
More tenants plan construction within
the re-emerging restaurant and retail hub
at Magnolia Park, the site of the former
Greenville Mall on Woodruff Road.
Two new restaurants, Firebirds Wood
Fired Grill and Toby Keith’s I Love This
Bar and Grill, have recently announced
plans to build at the site near interstates
385 and 85, said Matt Bloomfield, the
development vice president of Menin
Development Inc.
Firebirds plans to open in November. Site
work on the 6,500-square-foot restaurant
is under way on the space off Woodruff
Road next to Rooms to Go. Construction
is slated to begin within the next 30 days
with a projected June completion.
Firebirds opened its first restaurant in
Charlotte in 2000. Today the restaurant
has 23 locations in Alabama, Arizona,
Delaware, North Carolina, Ohio,
Tennessee, Nebraska, Pennsylvania and
Virginia, with plans to open six more
locations nationwide in 2013. This will be
its first in South Carolina, according to its
website.
Toby Keith’s bar and grill is set to open in
the middle of 2014. The restaurant will be
built in front of Regal Cinemas.
Construction has not started yet.
Country music singer Toby Keith named
the restaurant after his hit single, I Love
This Bar. The restaurant, which offers
food and live music, has locations around
the country, according to its website.
Magnolia Park, which is being developed
by Palm Beach, Fla.-based Menin
Development, already includes Costco,
Regal Cinemas, Rooms to Go, Cheddar’s
and other retailers and restaurants.
Three companies recently announced
plans to locate at Magnolia Park as
well — Dave & Buster’s restaurant and
entertainment complex, Bad Daddy’s
Burger Bar and Cabela’s Inc., a hunting,
fishing and outdoor gear retailer.
Magnolia Park has around 550,000
square feet of existing retail space.
Development plans call for an additional
520,000 square feet of retail and 375,000
feet of office, hotel and residential uses,
according to Menin Development’s
website.
Menin Development is a privately held
owner, developer and manager of
commercial real estate properties.
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
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UPSTATE IN THE NEWS
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
58 APPLY FOR 3 DOWNTOWN BUSINESS SPOTS
By Lynne Shackleford
Published February 20, 2013
Spartanburg Herald Journal
Fifty-eight people are vying for three prime
downtown Spartanburg retail spots.
Those applications for the city’s first Main
Street Challenge will be narrowed to a
dozen semi-finalists next week. Then the
semi-finalists will submit comprehensive
business plans before they’re trimmed
to six finalists, who will try to convince a
selection committee that their business is
a good fit for downtown.
Will Rothschild, city communications
manager, said there were a wide range
of applications for retail clothiers, home
decor shops, hiking and camping supplier,
specialty shoe stores, restaurants, health
food store and adult night spots, among
others.
The city will award three winners $1,000
a month for one year to supplement rent
payments or other new business costs.
In addition, they’ll receive in-kind services
such as accounting, website design,
signage and office supplies.
Rothschild said interest in the competition
exceeded the city’s expectations.
“There will be three eventual winners,
so we had about 20 applications for the
winning spots,” Rothschild said. “The
ultimate outcome of the Main Street
Challenge is that three storefronts will be
filled with new businesses, but the benefit
to the city is much more than that.”
The city’s economic development staff
now has 58 new leads on businesses,
Rothschild said.
“These are all very good leads,” he said.
“These applicants have taken the time to
complete an application and some have
already submitted business plans. So,
we now have something in writing from
58 aspiring entrepreneurs all at the same
time.”
Rothschild said the selection committee is
comprised of business owners, bankers,
and higher education professionals who
know what it takes to make a business in
Spartanburg successful.
The three winners will be announced
on May 26 and will open sometime this
summer.
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RETAIL DIVISION
For more information on the Upstate Retail market please contact one of our specialists:
Jimmy Wright Principal and Broker
Ted Lyerly, CCIMBroker
Renee DunlapBroker
Bill SimsBroker
Jake Van GiesonBroker
Rob SchmidtBroker
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
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Tim RollerBroker
Uptown15.3 million SF vacant4.13% vacancy rate$54.14 SF/YR avg. rental
Midtown4.88 million SF vacant4.7% vacancy rate$37.53 SF/YR avg. rental
Downtown11.3 million SF vacant4.o% vacancy rate$42.03 SF/YR avg. rental
ABOUT NAI EARLE FURMAN
A SOLID FOUNDATION AND PROVEN RESULTS
Founded by J. Earle Furman in 1986, NAI Earle Furman is the leading full service commercial real estate brokerage firm in the Upstate of South Carolina specializing in the office, industrial, investment, healthcare, land, multifamily and retail sectors. NAI Earle Furman offers a wide range of services including sales, leasing, development, site selection, consulting and property management. A partnership with NAI Global allows NAI Earle Furman to access a network of worldwide real estate connections and offer international commercial real estate services to Upstate clients, while retaining local personality and knowledge.
NAI Earle Furman offers a full service property management program that encompasses a unique hands-on approach to real estate management. Formal monthly property inspections with face-to-face contact with each tenant provide the foundation of the management program. Each property is evaluated on an individual basis with the end result being a management program that will suit the needs of each property. Monthly operational reports are tailored to accommodate each property and include an executive summary page unlike any in the industry.
STRONG LEADERSHIP AND A TEAM APPROACH
The firm has over 60 team members and in 2012 completed over 600 transactions. The Property Management team has also grown exponentially in recent years and manages over 5 million square feet of commercial space in North and South Carolina.
NAI GLOBAL
As the world’s only managed network of commercial real estate firms, New America International (NAI) works together to help clients strategically optimize their assets throughout the world. As a member of this network, NAI Earle Furman, LLC, is able to provide commercial real estate services to our local Upstate clients, as well as national and international clients. We have immediate access to over 5,000 professionals working out of 350 offices in 55 countries throughout the world. The NAI Global Network has annual sales and leasing transactions of $45 billion and manages 300 million square feet of property.
In addition to NAI Global, our brokers are also members of ICSC, Urban Land Institute, CCIM and SIOR, giving them access to a wealth of knowledge and networking. NAI Earle Furman has more SIOR and CCIM designees than any other firm in South Carolina.
101 East Washington Street, Suite 400Greenville SC 29601864 232 9040www.naiearlefurman.com
NAI Earle Furman principals
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
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www.naiearlefurman.com – Complete listings of NAI Earle Furman’s available properties
www.greenvilleeconomicdevelopment.com – The Greenville Area Development Corporation (GADC) is dedicated to the growth and prosperity of Greenville County, SC. Since its founding in 2001, GADC efforts have resulted in the creation of nearly 10,000 new jobs and more than $2 billion in capital investment in Greenville County. The organization’s continued successes are demonstrated by the innovative, dynamic, and inviting nature of our community.
www.upstatealliance.com – Formed in 2000, the Upstate South Carolina Alliance is a public/private regional economic development organization designed to market the dynamic 10-county Upstate region to the world. The 10 counties of the Alliance represent the commerce-rich northwestern corner of South Carolina
www.greenvillechamber.org - The Greater Greenville Chamber at its core is dedicated to promoting quality development of Upstate South Carolina through managed growth, service to members and the public, and a community-wide approach to issues shaping the region's future.
www.sccommerce.com - Provides information on trade, grants, rural development, and recycling. Includes databases of community profiles, labor market information, etc.
www.sciway.net - South Carolina's Information Highway is the largest directory of South Carolina information on the Internet.
www.southcarolinapowerteam.com - The South Carolina Power Team promotes industrial sites & industrial buildings in South Carolina and the state's unique advantages for industry.
www.greenvillesc.gov - Official website of the City of Greenville
www.spartanburgcounty.org – Official website of Spartanburg County government
www.greenvillecounty.org – Official website of Greenville County government
www.andersonsccounty.org - Official website of Anderson county government
www.cherokeecountysc.com - Official website of Cherokee county government
ADDITIONAL RESOURCES
Some of the data in this report has been gathered from third party sources including CoStar Group, Inc. and has not been independently verified by NAI Earle Furman, LLC. NAI Earle Furman, LLC makes no warranties or representations as to the completeness or accuracy thereof.
The Upstate Market is defined by: Greenville, Anderson, Spartanburg, Cherokee and Pickens counties.
Q1 2013 RETAIL ADVISORY BOARD
NAI EARLE FURMAN RETAIL MARKET REPORT Q1 2013
Bill SimsBroker
Jimmy WrightPrincipal & [email protected]
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