While the Savannah retail market has felt the impact of the recent economic downturn, the overall market has maintained its equilibrium, driven by key economic engines such as the Georgia Ports Authority/Port of Savannah, Fort Stewart, Hunter Army Airfield, the tourism industry and The Savannah College of Art and Design (SCAD).
The Savannah Area Chamber and Visitors Center announced that June 2012 was a record-breaking month with 87 businesses joining the Chamber. Savannah also consistently makes top ten lists for best travel destinations. These constants have served as a steadying influence as various segments of the retail market have reacted and adapted to the evolving marketplace.
Though downtown Savannah and the Historic District have seen property values decline during the last 36 months, the retail market has taken steps forward and backwards, and the general arc seems to be positive. Levy Jewelers, an upscale local jewelry store, has acquired a prime location at Broughton and Bull streets, the nexus of the main shopping district. Marc Jacobs Boutique and Urban Outfitters lead a list of national retailers that have set up shop in the downtown area.
Whole Foods will mark its entry into the Savannah market with a 35,000-square-foot store at Victory Station, a center to be located on a site formerly occupied by a General Motors dealership. Atlanta-based Knightswood and S.J. Collins Enterprises are developing the project, which will include 12,000 square feet of shop space as well as a proposed 12,800-square-foot outparcel building. Whole Foods is expected to open in the fall of 2014.
The midtown shopping area boasts two upscale shopping centers — Twelve Oaks Shopping Center and Abercorn Walk — and has fared well, with both centers continuing to upgrade tenant mix. Twelve Oaks includes Publix, Bonefish Grill, Pier 1 Imports, LensCrafters and Starbucks among its tenants, while Abercorn Walk includes Fresh Market, Talbots and Williams-Sonoma. Local shoppers, along with soldiers and their families, make up a large portion of the customer base for this area.
Blanchard & Calhoun plans to raze seven buildings on a nearly 24-acre site to make way for a large commercial center that will be home to a 117,000-square-foot Kroger. The site is located on Hodgson Memorial Drive across from Oglethorpe Mall, Savannah’s first mall. The developer is in negotiations with a big-box tenant for a 55,000-square-foot space next to the Kroger. It has been reported that Dick’s Sporting Goods is in negotiations for the space.
Major activity continues along Abercorn Street, Savannah’s primary shopping corridor. Abercorn Commons has back-filled former Circuit City and Books-a-Million spaces with Ashley Furniture HomeStore, Office Depot and Party City.
Oglethorpe Plaza, which is anchored by Best Buy, is filling the former Office Depot and Circuit City boxes with an 80,000-square-foot Kohl’s. It is slated to open early next year.
Further south along Abercorn Street, The Rosen Group has purchased Largo Plaza, which is anchored by Publix and AutoZone, and has seen the arrival of AT&T and Papa John’s. Jimmy John’s is now under construction and the owners are working with two national tenants, which will complete lease-up at the property.
Westside Savannah, which includes Pooler, Georgia, has seen increasing growth even through the economic downturn. Although housing starts have lagged, retailers continue to push forward in anticipation of inevitable growth in the area. The Interstate 95 and Pooler Parkway area, located across from the Savannah/Hilton Head International Airport, is home to major big-box players including Sam’s Wholesale Club, Walmart and The Home Depot. The Port of Savannah, along with JCB Tractor and Gulfstream Aerospace, contribute significantly to the job market in this area. Target, Dollar Tree, Pier 1 Imports, Ikea and The Home Depot have all developed major industrial warehouses that serve the Southeast through the Port of Savannah.
Barring any unforeseen external factors, the Savannah retail market appears to be on firm footing as it moves through the current decade.
— Louis H. Lipsitz is a senior leasing and management specialist with
David Garfunkel & Co.