Media Coverage

Shopping Center Business
March 2007
Location Keeps Carolinas Market Positive (South Carolina)

Both North Carolina and South Carolina are seeing large growth in the retail market due to the influx of residents relocating from other parts of the U.S. While some arrive to avoid the often harsh climate of the Northeast, others seek comfort and stability from the weathered coasts of Florida. Many are beginning to call the Carolinas home, because the varied types of terrain make it an easy transition for almost anyone. No matter which way you look at it, retail in the Carolinas continues to grow.

South Carolina

South Carolina, while having a slightly less diversified terrain, is in no way losing velocity when it comes to retail development. Throughout the state's major markets, new retail projects are coming on line. Large-scale lifestyle and mixed-use centers are very popular, while traditional retail still remains strong.

James Doran Co. is involved in South Carolina's mixed-use market with its Downtown Daniel Island, located near Charleston. Upon completion, the project will 167,000 square feet on 10 acres and will feature retail and office space. Tenants at Downtown Daniel Island include Publix, SunTrust, Baker's Cafe, State Farm and Subway. Approximately 99 percent of the first 70,000-square-foot facility is leased and open, and construction is underway on the following 30,000-square-foot component, which is expected to open this October. The final phase of the project is scheduled to begin construction late this year.

"Retail and office space offer a lively marketplace alongside upscale residential neighborhoods in this small island town, and the beauty of the Lowcountry surrounds on every side," says Shane Doran, president of James Doran Company. "This mixed-use development offers the 'new urban village' lifestyle."

Hill Partners also is present in the Charleston market and is currently developing one of city's largest new projects. The Town Square at Daniel Island, which is located off Interstate 526 at the main entrance into Daniel Island, will be positioned on a 52-acre tract of land. The mixed-use development will be pedestrian-friendly and house approximately 420,000 square feet of specialty and lifestyle retail, restaurants and cafes. Also planned for the project is a 480-unit residential component and a mid-level hotel -- both will have access to all the center's amenities. The $200 million development is scheduled for a 2009 opening.

Hill Partners is developing two more centers in South Carolina -- Barefoot Landing in north Myrtle Beach and The Village at Sandhill in Columbia, a joint venture project with Kahn Development.

Barefoot Landing is a retail center that was originally built in the late 1980s, with a second phase that was developed in the early 1990s. The 300,000-square-foot retail center was built around a 22-acre lake and backs up to the Intercoastal waterway. Hill Partners has been in charge of remerchandising the center to reach out to the new wave of residents and tourists visiting the area.

"Hill Partners has integrated Chico's, White HouseBlack Market, Birkenstock and lot of better quality tenants because the entire Myrtle Beach market is really evolved into less of a local/regional destination into a really more upscale resort community," says Spratt. "So we have been pushing the merchandising of it up in conjunction with the Barefoot Resort. We have been integrating tenants leases, we have been integrating better quality lifestyle retailers into that, and they have been doing incredible numbers. It is really an interesting and unique specialty retail development that continues to evolve as the market changes."

Kahn Development is working with Hill Partners on The Village at Sandhill, a 300-acre mixed-use center located in Columbia. The joint venture project will include the only regional lifestyle shopping center in Columbia and will more than 1 million total square feet. The lifestyle component, which is being spearheaded by Hill Partners, s 400,000 square feet and is anchored by JCPenney, Belk and Regal Theaters. Other tenants scheduled to join The Village at Sandhill include Talbots, Coldwater Creek, Victoria’s Secret, Ann Taylor Loft, Jos. A. Bank, The Sharper Image, Books-A-Million and American Eagle, among many others. Phase I is currently open with Phase II and II under construction. Phase II will open next month and Phase III is scheduled to open this fall.

Kahn Development is developing power center and residential components for the project, and will bring in tenants such as Bi-Lo, Old Navy, T.J. Maxx, Rooms to Go and World Market.

Also in the Columbia metro area is Edens & Avant's Lexington Pavilion. Located at the intersection of Sunset Boulevard and Hope Ferry Road in Lexington, the retail development will 230,000 square feet. Lexington Pavilion is scheduled to open this July.

Greenville is another South Carolina city that is experiencing the effects of relocating residents. Downtown Greenville sees approximately 116,000 employees within 5 miles each day. Coupled with more than 500 new residential units built in the past 5 years, and 600 more units planned or under construction, the retail market has a strong customer base. The downtown retail sales for Greenville in 2005 reached more than $110 million.

Retail development the city of Greenville has therefore been very active.

Crosland's The Shops at Greenridge, a 600,000-square-foot retail development, is Greenville’s third largest shopping destination. The project is located at the intersections of Woodruff Road and Interstates 85 and 385 and currently has several tenants open such as Lowe's Home Improvement Warehouse, Dick's Sporting Goods, Best Buy, OfficeMax, PetSmart, ann Taylor Loft, Chico's and Talbots. Restaurants including P.F. Chang's China Bistro, Red Robin and Mimi's Cafe; are also housed in the development. The 70-acre development, which is valued at $64 million, is a joint venture project of Crosland and Core Properties.

Also in Greenville is The Field House, a mixed-use development of Centennial American Properties located in downtown Greenville. The project is positioned in front of Greenville's minor league baseball field and will house Port City Java, New York Life and Liberty Tap Room and Grill in 12,000 square feet of retail space. The office component, which opened last September, s 42,000 square feet. The opening of the retail portion is scheduled to coincide with the opening day of baseball season this year.

The economic development department of the City of Greenville is developing McBee Station, a retail project located just three blocks off of Main Street downtown. The development, which is scheduled to open this summer, will feature 58,000 square feet for its two anchors, Publix and Staples, as well as 35,000 additional square feet for other retailers.

"The amenities downtown are huge draws, including the award-winning Liberty Bridge and Falls Park on the Reedy River, the Peace Center for the Performing Arts and more 80 restaurants," says Mary Douglas Neal, downtown development manager for the City of Greenville. "McBee Station will expand downtown's retail offerings beyond Main Street and will bring in a grocery store to downtown -- which is a first. The project will be a retail destination and will anchor the eastern side of downtown."

"There is a healthy growth in the Upstate South Carolina economy," Neal continues. "More and more people are choosing to retire in Greenville, including those that initially relocated to Florida from the Northeast but who have grown tired of the high insurance costs and threats of hurricanes in Florida and have decided to relocate to South Carolina. Our area is known for its high quality of life with strong job growth and a very healthy local housing market."

The Carolinas are the beneficiaries of the massive migration that is taking place. Whether residents and customers are relocating for the weather, the quality of life, the healthy business climate, or personal reasons, the retail market in the Carolinas is seeing the effects.