The Upstate area of South Carolina finished 2011 with quite a bit of retail activity and good news on the retail front has continued into 2012.
Greenville, Spartanburg and Anderson saw positive retail absorption of 233,144 square feet in the fourth quarter of 2011, according to CoStar, and vacancy rates declined to 6.4 percent in the fourth quarter of 2011 from 6.6 percent the previous quarter. The housing market seems to have stabilized and is showing positive trends, which is good news for retailers. And the Upstate has had a number of new economic development announcements including BMW’s facility expansion and Amazon’s new 1 million-square-foot distribution center, which is under construction in Spartanburg.
The Upstate Alliance reported that 2011 brought the creation of more than 5,000 new jobs and capital investment of more than $805 million in investment and expansions. The Upstate South Carolina region has already announced more than $1 billion in capital investment thus far in 2012. The newest announcement is in Union for Belk Inc.’s new distribution center, which brings $4.5 million in capital investment and more than 120 jobs to the area.
The Upstate has had success backfilling some big box vacancies. buybuyBABY took over the former Linens ’n Things space in Greenridge while REI and Petco have occupied the former Circuit City store on Woodruff Road. Rush Fitness absorbed the former Goody’s space in Cherrydale Marketplace and Old Navy, Toys ‘R’ Us and LongHorn Steakhouse are new tenants in Westgate Village in Spartanburg. In Greer, Kohl’s has taken a former Kmart space and a Walmart’s Neighborhood Marketplace replaced an old Winn-Dixie, both on Wade Hampton Boulevard.
There have been a number of new projects in the Upstate area. Dollar General has been active, relocating in-line stores like the one on West Butler Road in Mauldin. AutoZone just finished a new store in Travelers Rest. Buffalo Wild Wings opened near the Dorman Center in Spartanburg, flanked by new shop developments, including Chipotle, Yogurt Mountain, Aspen Dental, as well as Portrait Innovations, Vitamin Shop and Mattress Firm. Walmart plans to build a store in Powdersville on Highway 153.
Greenville’s RealtyLink is redeveloping Crosspoint, where a former Circuit City and soon-to-be-vacated Toys ‘R’ Us offer a prime position near the Haywood Mall.
Menin Development is making progress on Magnolia Park on Woodruff, which includes the Toys ‘R’ Us relocation, a recently opened Rooms To Go and Cheddar’s Casual Café. The company has several new-to-market retailers included in its plans. Carolina Ale House just opened in the former Flat Rock Grill across from Trader Joe’s and Academy Sports + Outdoors has taken over the former BJ’s Warehouse.
ONE, Hughes Development’s new mixed-use project on Main Street in downtown Greenville, includes Anthroplogie and Certus Bank. Upon completion, ONE will include 40,000 to 50,000 square feet of retail space.
Also in Greenville, Mac’s Speedshop, from Charlotte, is opening its first location in the West End this spring across from the Flour Field. Nearby, Walmart is pursuing an in-town location on Church Street.
Lewis Plaza, South Carolina’s first life-style center on Augusta Road, sold recently. New owner AVTEX Commercial Properties is considering redevelopment plans.
Retailers are active in the Upstate area of South Carolina and we are optimistic that the market will continue to improve in 2012.
— Pete Brett, CCIM, is a broker with Greenville-based Coldwell Banker Commercial Caine.