Do you remember how it feels to be on a wild rollercoaster ride, excited and confused, trying to make sense of the ride yet wondering when it will end? That’s exactly what developers, brokers, retailers and landowners are feeling in the commercial retail market.
Although Macon finds itself somewhat insulated from what major retail markets are feeling during the “Great Recession,” it is certainly not immune to the prolonged effect of this economic downturn. With the lack of financing, local and regional developers have had to adjust the delivery of their projects in the wealthy submarket of North Macon and the South Bibb County area. While they too recognize Macon as somewhat of an insulated market, they are not blind to the fact that nationally some major retailers have closed, rental rates are declining, vacancy exceeds 20 percent and negative absorption is beginning to rear its ugly head.
The Shoppes at River Crossing, Macon’s newest lifestyle center on Riverside Drive, hit a speed bump with the departure of Circuit City, but has quickly recovered with the recent announcement of Jo-Ann Fabrics & Crafts’ lease of a 20,331-square-foot building. With a commitment from a major anchor, Fickling and Co. is moving forward with its development of North Macon Plaza, a 380,000-square-foot power center located on the east side of Interstate 75 in the Bass Road corridor. Construction is scheduled for 2012, with delivery to market in 2013.
Already securely in place on the east side of the I-75 interchange, Bass Pro Shops continues to be very successful. In Lullwater East, an 11,000-square-foot shadow center to the upcoming North Macon Plaza, the former Starbucks Coffee space was leased to Mirko Pasta for its first middle Georgia location. This casual Italian cafe is scheduled to open this spring. Also, an undisclosed tenant should take occupancy of 7,500 square feet on or before June 1, and negotiations are ongoing for the remaining 1,500 square feet of space. Bass Pro Shops’ presence and the project’s restaurant diversity have already made the east side of the interchange a major destination for I-75 commuters as well as neighborhood traffic.
Along the northwest side of I-75 in the Bass Road corridor lies the upscale Providence Village development, Rob Ballard’s premier mixed-use, master-planned development. Celebrating its 1-year anniversary in March, Hilton’s Homewood Suites has made a big splash in the Bass Road corridor. Recently announced is the addition of Natalia’s Italian restaurant, a 25-year establishment and one of Macon’s finest restaurants. The 6,000-square-foot restaurant is under construction. Additionally, Ballard has several outparcels under contract and has secured deals for a 13,000-square-foot pharmacy and a 4,000-square-foot convenience store.
Shops at Bass Plantation — a 68,751-square-foot, Publix-anchored neighborhood center located on the southwest side of Bass Road — was completed in fourth quarter 2009 and is currently 85 percent occupied. The recent addition of Mellow Mushroom, Margarita’s Mexican restaurant and a Class A office building to the Bass Road area has increased traffic counts dramatically. Also in the North Macon area, Carol’s Linens is moving its 21,615-square-foot store from Eisenhower Parkway to the former Barnes & Noble bookstore on Tom Hill Sr. Boulevard in North Macon, where it will take 12,000 square feet, leaving two end caps of 4,800 square feet each. Carol’s new store is scheduled to open in the spring.
Harley Station, South Bibb County’s 1,300-acre, master-planned community being developed by Hartley Properties LLC, is under way with several outparcels already occupied by national retailers such as Zaxby’s, McDonald’s, Dairy Queen, CVS/pharmacy and Advanced Auto Parts. The Sofran Group recently closed on a tract that will be developed for a Publix-anchored shopping center starting in April 2011 with delivery scheduled for January 2012.
Macon’s hot submarkets of Bass Road, Riverside Drive and Hartley Bridge Road aren’t the only sectors experiencing change in the retail market. The Eisenhower Parkway corridor is trying to put on a new face for 2010. Long-time vacant big box spaces are being considered for alternate uses such as educational facilities, government use and medical facilities. The former Kmart store located on Eisenhower Parkway is under contract with Birmingham, Alabama-based Virginia College, which will spend $2 to $3 million to convert 50,000 square feet of the 102,000-square-foot building. If approvals go as planned, the college would begin offering classes later this year. Additionally, Minnesota-based Continental Property Group plans to purchase the 1.4 million-square-foot Macon Mall for an undisclosed amount and scale back the retail use by converting approximately 500,000 square feet to entertainment and dining uses.
Expect continued repositioning of older, vacated retail spaces to non-retail uses such as medical and education in 2010. Overall, average rental rates are coming in favorably for developers in the new Class A retail developments in the hot submarkets, but a softening of rental rates as compared to 2009 is apparent. Concession packages are being offered in older properties. With the amount of new quality development in the pipeline, Macon should expect to see an interception of retail dollars that has historically been spent in the larger retail market north of us.
Ladies and gentlemen, put your seatbelt on, keep your hands and feet in the car at all times and enjoy the ride!
— Wendy Holmes Pierce is a commercial sales and leasing specialist for Fickling and Co.in Macon.