8.0% 7.5% 7.0% 6.5% 6.0% $11.00 $10.50 $10.00 $9.50 $9.00. continued on page 3

Transcription

1 Q UPSTATE, SOUTH CAROLINA RETAIL MARKET REPORT LOCAL UPSTATE ECONOMY Total Population...1,375,759 Total Households...537,556 Median Age Total Labor Force...640,411 Unemployed...57,015 Unemployment Rate...8.9% Source: SC Dept. of Employment & Workforce & ESRI Business Analyst RETAIL MARKET OVERVIEW By: Bill Sims Retail Division 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. RETAIL MARKET TRENDS Vacancy Rate Net Absorption Construction Asking Rents Number of Buildings...9,578 Market Size (SF)...82,395,684 Overall Vacancy Space (SF)...5,574,602 Overall Vacancy (%)...6.8% Direct Vacancy (SF)...5,283,461 Sublease Vacancy (SF)...291,141 Net Absorption...(78,346) Average Asking Rental Rate ($/SF/YR)...$ % 7.5% 7.0% 6.5% 6.0% $11.00 $10.50 $10.00 $9.50 $9.00 Overall Vacancy (%) 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Average Asking Rental Rate 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Vacancy 6.8% Average Rate $9.57 continued on page 3 Upstate Market 1 / Submarket Data 2 / Activity 3 / News 4-6 / Retail Division 7 / About Us 8 / Resources 9

2 SUBMARKET DATA GREENVILLE Submarket # of Bldgs. Total RBA (SF) Vacant (%) Total Net Absorption (SF) Total Average Rate Greenville (All Submarkets) 3,856 35,036, (8,380) $10.74 SELECT GREENVILLE RETAIL SUBMARKETS* Augusta Road 248 1,731, % 10,553 $11.41 Laurens, Haywood and Congaree Road Corridor 413 7,298, % 39,318 $12.38 Downtown Greenville , % (7,373) $15.91 Woodruff Road/Butler Road 367 4,606, % (17,503) $13.44 Pelham Road 150 1,509, % 616 $13.59 Simpsonville 390 3,481, % (27,455) $11.02 Wade Hampton/Greer 576 4,810, % 15,324 $8.37 SPARTANBURG Submarket # of Bldgs. Total RBA (SF) Vacant (%) Total Net Absorption (SF) Total Average Rate Spartanburg (All Submarkets) 2,975 23,071, % (71,750) $8.91 SELECT SPARTANBURG RETAIL SUBMARKETS* East Side/Downtown 539 5,287, % (23,071) $9.95 West Side 443 6,012, % 9,077 $10.25 Boiling Springs/Hwy ,796, % (23,671) $8.25 ANDERSON Submarket # of Bldgs. Total RBA (SF) Vacant (%) Total Net Absorption (SF) Total Average Rate Anderson (All Submarkets) 1,481 13,057, % 29,366 $8.09 SELECT ANDERSON RETAIL SUBMARKETS* Hwy 81 & Clemson Blvd ,279, % 3,616 $11.61 Pickens 663 5,665, % 45,877 $10.16 *Above is a sampling of the major retail submarkets in the Upstate. For additional market data please marketing@naiearlefurman.com. 2

3 UPSTATE RETAIL ACTIVITY 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. ABSORPTION & DELIVERIES Past 7 Quarters Millions SF (0.1) (0.2) (0.3) (0.4 (0.5) Net Absorption Deliveries 11 3Q 11 4Q 12 1Q 12 2Q 12 3Q 124Q 131Q Summer is just around the corner and it appears the second quarter of 2013 will see continuous progress in the retail sector. NEW TO THE MARKET Downtown Greenville Sully s Steamers Café Rare Steakhouse on the Piazza Woodruff Road, Greenville Chuy s Tex-Mex (coming soon) Anderson Men s Wearhouse Aspen Dental Downtown Spartanburg Wild Ace Pizza & Pub VACANCY & RENT Past 7 Quarters Price in Dollars per Unit $10 $10 $10 $10 $9 $9 $9 Average Rental Rate Q 4Q 1Q 2Q 3Q 4Q 1Q Vacancy Rate 7.0% 6.9% 6.8% 6.7% 6.6% 6.5% 6.4% 6.3% 6.2% 6.1% Vacancy Rate Percentage Graph Source: CoStar Property SAMPLING OF TOP LEASE TRANSACTIONS 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. SAMPLING OF TOP SALE TRANSACTIONS 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 *NAI Earle Furman Transaction 3

4 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. 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. 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. 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. 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. The Hyatt Regency Greenville opened on North Main Street in It was previously owned by Hyatt Hotels Corp. before JHM purchased it in Owned by the Rama family, JHM was founded by H.P. Rama in The privately held, owner-operator has more than 40 hotels across brands such as Marriott, Hilton, Hyatt and Starwood. 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. 4

5 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 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 This will be its first in South Carolina, according to its website. 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. Toby Keith s bar and grill is set to open in the middle of The restaurant will be built in front of Regal Cinemas. 5

6 UPSTATE IN THE NEWS 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. 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. 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 6

7 RETAIL DIVISION For more information on the Upstate Retail market please contact one of our specialists: Jimmy Wright Principal and Renee Dunlap Ted Lyerly, CCIM Rob Schmidt Tim Roller Bill Sims Jake Van Gieson 7

8 ABOUT NAI EARLE FURMAN Uptown 15.3 million SF vacant 4.13% vacancy rate $54.14 NAI Earle SF/YR Furman avg. principals rental A SOLID FOUNDATION AND PROVEN RESULTS Midtown 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, 4.88 million land, multifamily SF vacant 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 4.7% worldwide vacancy real estate rate connections and offer international commercial real estate services to Upstate clients, while retaining $37.53 local personality SF/YR avg. and knowledge. rental 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 Downtown 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 11.3 million SF vacant 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. 4.o% vacancy rate $42.03 SF/YR avg. rental 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 400 Greenville SC

9 ADDITIONAL RESOURCES Complete listings of NAI Earle Furman s available properties 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. 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 - 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. - Provides information on trade, grants, rural development, and recycling. Includes databases of community profiles, labor market information, etc. - South Carolina's Information Highway is the largest directory of South Carolina information on the Internet. - The South Carolina Power Team promotes industrial sites & industrial buildings in South Carolina and the state's unique advantages for industry. - Official website of the City of Greenville Official website of Spartanburg County government Official website of Greenville County government - Official website of Anderson county government - Official website of Cherokee county government RETAIL ADVISORY BOARD Jimmy Wright Principal & jwright@naief.com Bill Sims bsims@naief.com 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. 9