second quarter 2017 | retail greenville second quarter 2017 | retail greenville the second quarter...
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Second Quarter 2017 | Retail
Greenville
The second quarter of 2017 boasted three key retail trends: the rapid rise in rent rates on Downtown Greenville’s Main Street, an all-time high in restaurant competition within Downtown Greenville, and continued growth of suburban retail development.
Downtown Greenville’s Main Street is in the spotlight, thus furthering the rise in rental rates. The competition between restaurants and retail shops for prime retail space will continue to increase throughout 2017. This is attributed to the recent national accolades Downtown Greenville has received combined with the delivery of several new hotels, multifamily housing facilities, office buildings and retail developments.
Restaurant competition in Downtown is especially high due to skyrocketing rental rates combined with high food prices. At the end of the second quarter, two prominent West End restaurants announced that they will be closing their doors permanently. New restaurants willing to pay higher rental rates are already lined up to take their places. Further, Greenville will be receiving several new-to-market concepts including an IV bar, a bar-cade and several bowling alleys.
Downtown Spartanburg is also in the Upstate spotlight with a wide variety of new restaurant concepts coming to market combined with mill revitalization. Rick Erwin announced plans for a “Level 10”
restaurant concept to open at the new AC Hotel. A first-to-market Hawaiian cuisine restaurant, Pokenori plans to open Downtown along with additional breweries and restaurant concepts. Mill revitalization, a trend that started in Greenville, has now carried over to the Spartanburg market. The Arcadia Mill is set to receive rehabilitation with the addition of 80 loft apartments and a portion of the building for an art school.
Suburban retail development is on the rise with the addition of several new-to-market grocers. Lidl and Aldi grocers continue to open new stores throughout Greenville and Spartanburg. Sprouts also announced its plans for a new development on the Woodruff Road corridor. In addition to grocery chain growth, other national retailers including Tropical Smoothie have announced plans for new Upstate locations. Area restaurant Staple, Saskatoon, announced that it will be vacating its Haywood Road location after 23 years after purchasing 9 acres for an expansion. Another area restaurant/bar staple, Local Cue, applied for expansion plans to include an event venue.
These retail trends can be expected to continue throughout the remainder of 2017 and trickling into 2018 as both Downtown Greenville and Downtown Spartanburg receive national attention from both media publications and developers alike.
Downtown Greenville in the Spotlight Creating High Competition
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Greenville Second Quarter 2017 | Retail
Anderson CountyInventory
Vacancy Rate
Available Rate
Asking Rent
Laurens CountyInventory
Vacancy Rate
Available Rate
Asking Rent
Greenville CountyInventory
Vacancy Rate
Available Rate
Asking Rent
Cherokee CountyInventory
Vacancy Rate
Available Rate
Asking Rent
Pickens CountyInventory
Vacancy Rate
Available Rate
Asking Rent
Spartanburg CountyInventory
Vacancy Rate
Available Rate
Asking Rent
4Q165,131,548
6.6%
12.3%
$6.11
4Q16797,549
6.2%
8.0%
$5.62
4Q1613,615,218
6.7%
8.1%
$11.68
4Q161,063,506
3.6%
5.4%
$7.54
4Q162,828,283
8.0%
8.4%
$10.05
4Q166,902,310
8.4%
10.5%
$6.92
3Q165,131,548
6.4%
9.2%
$6.45
3Q16797,549
6.9%
9.8%
$5.62
3Q1613,595,218
6.9%
8.7%
$11.48
3Q161,063,506
4.4%
5.7%
$7.54
3Q162,828,283
7.1%
7.5%
$9.95
3Q166,902,310
10.0%
11.9%
$7.05
2Q165,131,548
6.5%
8.9%
$6.28
2Q16797,549
9.1%
10.7%
$5.28
2Q1613,590,218
8.3%
9.0%
$11.64
2Q161,063,506
4.1%
5.4%
$5.94
2Q162,828,283
8.8%
9.8%
$9.71
2Q166,902,310
9.1%
12.3%
$7.23
Submarket Indicators
Market Facts
7.2%Vacancy Rate
9.6%Available Rate
$8.64 psfAsking Rent
30,346,614 sfInventory
1Q175,131,548
9.5%
11.7%
$6.84
1Q17797,549
5.8%
8.0%
$5.62
1Q1713,623,418
6.6%
8.7%
$11.76
1Q171,063,506
3.6%
5.7%
$7.54
1Q172,828,283
5.3%
5.6%
$9.61
1Q176,902,310
8.3%
9.9%
$6.99
2Q175,131,548
10.0%
13.6%
$6.64
2Q17797,549
5.6%
7.4%
$5.62
2Q1713,623,418
6.6%
8.6%
$11.64
2Q171,063,506
2.9%
3.5%
$6.58
2Q172,828,283
5.8%
6.5%
$9.53
2Q176,902,310
7.8%
10.8%
$6.92
Partnership. Performance. avisonyoung.com
Greenville Second Quarter 2017 | Retail
All SubmarketsInventory
Vacancy Rate
Available Rate
Asking Rent
Net Absorption
4Q1630,338,414
7.1%
9.3%
$8.62
133,970
3Q1630,318,414
7.4%
9.3%
$8.79
193,951
2Q1630,313,414
8.1%
9.7%
$8.73
709,867
Market Overview
Submarket Map
1Q1730,346,614
7.2%
9.1%
$8.84
(37,465)
2Q1730,346,614
7.2%
9.6%
$8.64
79
Partnership. Performance. avisonyoung.com
Greenville Second Quarter 2017 | Retail
Trends to Watch
RentsRents continue to rise on Main Street in Downtown Greenville
CompetitionRestaurant competition at all-time high in downtown areas
DevelopmentSuburban retail development continues to grow
Vacancy Rates Asking Rent Net Absorption
Notable Lease Transactions
American Freight
JC Hair Land Beauty Supply
Absolute Fitness
Liquor & Wine World
Bee Healthy
Tenant
Original
Original
Original
Original
Original
Type
Hidden Hill Center, 473-477 E Blackstock Rd
Westowne Shopping Center, 5-9 Farrs Bridge Rd
Wade Hampton Gallery, 5115 Wade Hampton Blvd
Peachtree Shopping Ctr, 1301 W Wade Hampton Blvd
Anderson Central, 629-651 Hwy 28 Bypass
Address
Spartanburg County
Greenville County
Anderson County
Greenville County
Anderson County
Market
29,781
6,950
4,000
3,471
3,200
SF
Notable Sales Transactions
B.M. Smith & Associates, Inc.
Lakeside Vista, LLC
Greer Rite Air, LLC
15 Garlington, LLC
Prep Fast Food-piedmont, LLC
Buyer
$5,530,000
$3,250,000
$3,050,000
$2,295,483
$2,200,000
Sale Price
Camelot Center, 1600 John B White Sr Blvd
Carolina Ale House, 1115 Woodruff Rd
1100 W Wade Hampton Blvd
15 Garlington Road
Bojangles', 2 Kalyns Way
Address
Spartanburg County
Greenville County
Greenvile County
Greenville County
Anderson County
Market
64,519
6,478
14,481
5,565
3,400
SF
7.2%
6%
7%
8%
9%
10%
YE12 YE13 YE14 YE15 YE16 YTD17
$8.64
$7.50
$8.00
$8.50
$9.00
$9.50
YE12 YE13 YE14 YE15 YE16 YTD17
79
-200,000
-100,000
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17
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E. & O.E.: The information contained herein was obtained from sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.
Greenville Second Quarter 2017 | Retail
Charlene Aydelotte MasseyBusiness Operations Manager, Researcher [email protected]
GreenvilleContact Information
For more information on this report, please contact:
511 Rhett StreetSuite Two-BGreenville, South Carolina 29601United States
Researcher CommentsMarket research data and transaction information provided by CoStar.
John OdomSenior Associate [email protected]
Rakan DrazAssociate [email protected]
Total Square FootageRetail inventory includes all multi-tenant and single tenant centers and properties at least 20,000 square feet.
Retail Buildings ClassificationsSuper Regional Centers are properties with greater than two million square feet of space, drawing from a trade area encompassing multiple smaller submarkets. Sub Regional centers include centers of 500,000 square feet or greater that service one main submarket exclusively. Single Tenant retail includes power center tenants in free-standing centers as well as stand-alone retailers. Large Strip Centers are car oriented strip retail centers of 150,000 square feet or greater. Small Strip Centers are centers of 50,000 to 150,000 square feet, and include many local and grocery anchored centers.
Vacancy and AvailabilityThe vacancy rate is the amount of physically vacant space divided by the inventory and includes direct and sublease vacant. The availability rate is the amount of space available for lease divided by the inventory.
Net AbsorptionThe net change in physically occupied space over a period of time.
Asking RentThe dollar amount asked by landlords for available space expressed in dollars per square foot per year in most parts of the country. Retail rents are reported on a triple net basis where all costs including, but not limited to, real estate taxes, insurance and common area maintenance are borne by the tenant on a pro rata basis. The asking rent for each building in the market is weighted by the amount of available space in the building. This has the effect of causing rental rates on larger spaces to affect the average more than that of smaller spaces. The weighted average asking rental rate is calculated by taking the ratio of the square footage associated with the rental rate on each individual available space to the square footage associated with rental rates on all available spaces, multiplying the rental rate by that ratio, and then adding together all the resulting numbers. Asking rental rate averages only includes Direct Space that is being offered for lease directly from the landlord or owner of a building and does not include Sublet Space that is being offered by another tenant trying to sublet a space that has already been leased.
Retail Terms and Definitions
SubmarketsSubmarkets are non-overlapping, contiguous geographic designations having a cumulative sum that matches the boundaries of the Market they are located within.
Meghan McDuffAdministrative Coordiantor [email protected]