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Savannah has historically been known as an under-retailed market. Barriers to entry to the market have included expensive land acquisition and development costs, natural geographical barriers such as wetlands and rivers, oddly configured land parcels and stubborn sellers. Savannah is overcoming those barriers with authority as existing retailers expand within the market and previously nonexistent retailers enter. The unusual amount of retail development in an MSA of 360,000 people means Savannah is officially on the radar of quite a few retailers.
Westside/Pooler Parkway
The largest development within the area broke ground in early September and will be a big win for the entire Southeast. Ben Carter Enterprises commenced construction on The Outlet Mall of Georgia in nearby Pooler, comprising more than 560,000 square feet of retail and restaurant space. The outlet mall will house more than 170 retailers, of whom 70 percent are committed. The $200 million project will employ upwards of 2,000 employees, creating a boon for the local economy. A mix of luxury and traditional retailers is expected, of which 40 percent are reported to be new to the market. Also, 45 acres of adjacent land is being marketed for retail, restaurant and hotel site development. This project is expected to add nearly 1 million square feet of inventory to the market. Projected delivery of the mall is spring 2015.
Additional retail growth in Pooler is well underway with the arrival of The Village on Pooler Parkway, a GBT Realty development consisting of more than 143,000 square feet of retail space. The development has attracted a wide variety of restaurant and retail tenants and expects to be fully leased before project completion. The center also includes shadow space with smaller increments of space and pads that will house the likes of Panera Bread Co. and Aspen Dental. The development sits just north of the Interstate 16/Interstate 95 corridor off Pooler Parkway. With construction at full speed, project completion is on track for 2014.
Southside
Savannah’s Southside is seeing improvements to its retail market with a 210,000-square-foot, grocery anchored center known as Market Walk. This project is a redevelopment of a 55,000-square-foot distressed Kroger center by Blanchard and Calhoun Commercial and partner Kroger Co. The 23-acre tract is located off Hodgson Memorial and Mall Boulevard across from the Oglethorpe Mall. Plans call for the new Kroger to be more than twice the former size totaling nearly 120,000 square feet. Dick’s Sporting Goods, new to Savannah’s market, has committed to 55,000 square feet adjacent to Kroger, and 10,000 square feet of the center is dedicated to boutique shops, while the remaining tenant mix includes Chipotle, Aspen Dental and Super Cuts.
Midtown
Considered one of the most anticipated local retail developments of 2013, Savannah welcomed several fresh faces to the market in a 67,171-square-foot, grocery-anchored retail development, Victory Station. The project began construction in July 2012 with the assemblage and purchase of 5.5 acres of land off Victory Drive, east of Truman Parkway. The urban infill development was delivered in August 2013 and is currently being offered for sale.
Whole Foods is today’s most sought-after specialty grocery store, and Victory Station serves as the first location in the Savannah market for the 35,000-square-foot anchor. National tenants quickly fell in line behind Whole Foods to secure their spot in the center. PetSmart’s second location in the area opened at Victory Station, boasting nearly 14,000 square feet adjacent to Whole Foods. Also entering the Savannah market for the first time are Chipotle and Zoe’s Kitchen. Other national tenants in the development include Supercuts, Orange Leaf Frozen Yogurt, Interstate Batteries and Mattress Firm.
Retail development in Savannah is responding to the pent up demand of the consumer. The above projects alone will add almost 1.5 million square feet to the market, of which approximately one half of the tenants are new to the area.
Under-retailed? Not for long.
— Ashley Smith, principal of Colliers International