Tampa Luxury Retail Market Report

This has been your Tampa Luxury Retail Market Report.

A. Joseph Marshall 
Coldwell Banker Commercial
Commercial Real Estate Advisor 
Savannah, Ga 
912-790-6999

Pooler Mall Progress

SEDA has given Ben Carter's Pooler Mall development the go ahead to receive tax breaks. The mall is said to open in 2015 with work beginning later this year. Read more on this update at Savannah Area Mall Development Moving Forward. Here is my previous update on the development: http://sellingsavannahnow.blogspot.com/2012/10/atlanta-developer-to-build-luxury.html


A. Joseph MarshallColdwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga
912-790-6999
 

Blizzards on Eisenhower Drive

No, not weather resulting from Hurricane Sandy, but rather the construction of a new Dairy Queen at the southeast corner or Hodgson Memorial and Eisenhower Drives.

I am relieved that another prominent corner is not going to become another gas station / future brownfield. I believe this is the same group that owns local KFCs and Taco Bells.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

AJ&C Garfunkel buys Abercorn Common

The Savannah Morning News reports that David Garfunkel with AJ&C Garfunkel purchased Abercorn Commons for $24.2 million on Thursday.

Considering KimCo paid $40 million for Chatham Plaza in June 2007 and sold Largo Plaza in March for $10 million, this seems like a heck of good deal.

Kudos to the Garfunkels for bringing the development back to local owners and keeping the it in the local economy! Next step is to get the center back up to 100% occupancy, which won't take them long at all.

Read the full article at Local investor buys Abercorn Common

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Atlanta developer to build luxury outlet mall near Savannah

This project has been in the works for the last five years and I am glad to finally see it coming to fruition!

Posted: October 10, 2012 - 12:38am  |  Updated: October 10, 2012 - 7:46am
Reported in the Savannah Morning News by Mary Mayle 

The company that built the Mall of Georgia in Gwinnett County and the upscale St. John’s Town Center in Jacksonville, Fla., is planning a 560,000-square-foot luxury outlet mall in Pooler.

The Outlet Mall of Georgia is projected to open in the summer of 2014 in the southwest quadrant of I-95 and Pooler Parkway with four anchor stores, a food court, restaurants and a wide variety of shops.

The proposed $200-million project is set to break ground next spring and would create as many as 2,000 construction jobs, according to Ben Carter of Ben Carter Enterprises. When fully open, the mall would create between 1,700 and 2,000 retail jobs, Carter said Tuesday.

The 170-acre site will accommodate another half-million square feet for peripheral retail and hotel construction.

While financing is not complete and he would not name potential tenants, pre-leasing has begun, with interest from a number of high-end retailers, Carter said.

Abercrombie, Brooks Brothers, Coach and Louis Vuitton are among the tenants in the Jacksonville mall.

“From a visitor’s perspective, one of things that is missing here is really quality retail,” Carter said.

The Savannah engineering and architectural firm Kern-Coleman is working with Carter on the project.

Carter’s unscheduled presentation came at the end of the Savannah Economic Development Authority’s monthly meeting and was greeted with enthusiasm.

“The announcement today that Ben Carter is developing a luxury outlet mall in Chatham County is fantastic news,” said David Paddison, SEDA board chairman. “In addition to the massive construction investment, job creation and additional tax revenues, the Outlet Mall of Georgia will be a significant amenity for our residents, visitors and the millions of travelers passing through the I-95 corridor.

“This will be the signature outlet project on I-95 between Florida and Virginia”

Savannah is the second largest tourism market on the regional coast with 12 million tourists per year compared to Myrtle Beach at 14 million, Charleston at 4 million St. Augustine, Fla., at 3.4 million and Hilton Head Island at 2 million, according to Carter’s research.

“The closest comparable malls along the I-95 corridor are in Virginia and Florida,” he said. “While the Savannah regional trade area alone would not be sufficient to support a mall of this size, the tourist and traffic counts along the interstate more than make up for that.”

Traffic counts on I-95 run approximately 68,000 vehicles a day or 24.7 million annually.

“This is going to be huge for Pooler and all of Chatham County,” said Pooler Mayor Mike Lamb. “This is the shopping piece we’ve been looking for to make us a more complete city.”

Pooler has been in the bulls eye of targeted growth in the area for the last decade, and Lamb credited city council and staff with helping the city make good growth decisions. “We are ready for this,” he said. “Ben Carter Enterprises is the real deal, and we really appreciate them choosing our city.”

Savannah Area Chamber of Commerce President Bill Hubbard agreed.

“There’s a lot of work still to be done, but this is a great organizaion with tremendous capability,” he said.

“We are eager to help in any way we can.”

Read more about the Outlet Mall of Georgia at Upscale outlet mall proposed for Pooler and Atlanta developer to Ben Carter build luxury outlet mall near Savannah.  

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

CarMax to open Savannah store in spring 2013

I've gotten two phone calls about this in the last few days, so I'm posting the article that appeared on SavannahNow.com

The article is short and here in its entirety.

Posted: June 22, 2012 - 12:19am

By Adam Van Brimmer

Used car retailer CarMax announced plans Thursday to open its first Savannah location next spring on Abercorn Street.

The Richmond, Va.-based company will build its store on the 8.2-acre vacant lot owned by the Backus family located just south of Montgomery Cross Road. The CarMax location will share that stretch of Abercorn with several other car dealers, including Hoover Chrysler, Savannah Mitsubishi, J.C. Lewis Ford, Vaden Chevrolet, Fairway Lincoln and Southern Motors Honda.

The CarMax site was listed for $3.8 million by Rhett Mouchet and Michael Bone of local commercial real estate firm Kulp Mouchet. Mouchet declined comment for this story, citing a confidentiality agreement.

The Backus family has owned the property since the 1960s, when they bought it as a future home for their Cadillac dealership. The Backuses never built on the site, keeping the Cadillac dealership at their East Victory Drive location instead.

CarMax’s planned Savannah store is one of 10 the company will open in the next 12 months. CarMax announced a Columbus store as well.

CarMax is the nation’s largest used-car retailer with 112 stores in 27 states with approximately 30,000 vehicles in its inventory. The company was developed by executives of defunct electronics retailer Circuit City and opened its first store in Richmond in 1993.

CarMax did $10 billion in sales in 2012, with net earnings of more than $413 million.

CarMax is unique among auto dealerships in that its sticker prices are non-negotiable and sales associates work on flat commissions. Additionally, any vehicle on any of CarMax’s lots nationwide can be purchased from any store location.

Or you could read the full article CarMax to open Savannah store in spring 2013

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Ellis Square in Savannah Added to RCI’s Global Exchange Network

06/26/2012
Parsippany, N.J.
Summary:
The addition of Studio Homes at Ellis Square to RCI's network brings vacation exchange tourists to the heart of Savannah.

Image from www.bluegreenrentals.com

Key Quotes:
"RCI, the global leader in vacation exchange, announced today that the newest property in the Bluegreen portfolio, The Studio Homes at Ellis Square, has been added to the RCI resort exchange network."

"The Studio Homes at Ellis Square offer guests convenient access to all that Savannah has to offer. The city, which is known for its architecture and historical buildings, is alive with art, theater, shopping, dining and entertainment options."

The article is a press release from Wyndham WorldwideCorp. and can be read in full at: Wyndham Worldwide Corporation : Bluegreen's Studio Homes at Ellis Square in Savannah Added to RCI’s Global Exchange Network


A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Big plans for Mall Blvd. shopping center

Posted: June 17, 2012 - 1:15am  |  Updated: June 17, 2012 - 2:15pm

By Adam Van Brimmer

Summary: There are ambitious plans to tear down Market Walk and improve it with new construction. Developers will raze the Days Inn, Kroger, mini-storage, office buildings and retail center. The site will house a new larger Kroger with fuel center, a 55,000SF big box, and many retail outlets and restaurants. A date to reopen the 24 acre site is not determined yet.

Conception of redevelopment. Not exact.

Read the full article at Big plans for Mall Blvd. shopping center.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Family Dollar Comes to "Parkersville"

Family Dollar crews have begun site preparation for a new store at Presidents and Pennsylvania streets. The new location should be open by September to serve Pine Garden neighborhood residents. Adam Van Brimmer writes an opinion piece on it titled The Hot Corner on Presidents Street.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Window shopping is becoming window dressing

by David Versel   •   April 25, 2012 1:13 pm

Summary: Consumer behavior toward retail stores are changing. Young shoppers with the resources to spend  visit stores to feel affluent but purchase online. Retail spaces must be about entertainment, not just shopping.

Key Quotes:

"The old retail model of traveling to a place simply to acquire goods is dying, thanks in large part to the Internet, they said at a panel on retail during ULI's April 17 Real Estate Trends Conference. Today's successful retail destinations are much more about entertainment experiences than shopping."

"The economics of retail is shifting. According to Placemaker Michael Ewing, of Williams Jackson Ewing, retailers now rely on the "clicks and bricks" model, with their physical stores serving as venues for customers to see and learn about products that they later purchase online. Ewing said that people want to feel younger and more affluent than they really are, calling this 'the psychology of aspiration.'"

"A final obstacle to retail developments is the balance between financiers and customers. Lenders still love "national credit tenants" (the big chains), the panelists agreed, but the younger and more affluent are not interested in such stores. Those are the shoppers and residents that developers want to attract, but they have little interest in living near the stores that lenders prefer."

Read the full article at Window shopping is becoming window dressing

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Commercial Real Estate: A slow grinding path

Atlanta Business Chronicle by Michael Bull, Bull Realty

Date: Friday, February 10, 2012, 2:08pm

Summary: Each major commercial U.S. real estate sector is expected to improve given that: job growth continues, the European debt crises are resolved and the presidential election doesn't scare investors.

Key Quotes:
Apartments should be the strongest asset class this year.

The national industrial market has experienced seven consecutive quarters of positive net absorption, and the sector will again experience improved fundamentals in 2012, as some corporations bring manufacturing back to the U.S. and the Panama Canal is widened. Note that Savannah will not immediately benefit from a wider Panama Canal.

Unlike past downturns, the CBD markets are rebounding better than their suburban counterparts. In particular, medical office properties will continue to be a favored asset class. See also A prescription for Atlanta commercial real estate investment (and Savannah).

The retail market was hit hard by the recession, but is getting back on its feet.

Read the full article at: Commercial Real Estate: A slow grinding path

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Two Steak 'N Shake's Coming To Savannah

Summary: CBI construction company owner, Steve Head, and Steak 'N Shake franchisee owner Mike Heyden, begin construction of new Steak 'N Shake in Statesboro and site selection for two locations in Savannah.

Key Quotes:
“We researched several different franchise opportunities, did due diligence, flew to corporate headquarters and decided to move forward in June of last year,” Mike Heyden, owner of the new Steak n’ Shake, said.

Heyden and Hamilton are also planning on opening two more restaurants in Savannah.

“We haven’t picked locations out yet, but when we decided to go forward with this concept we signed an area agreement that committed us to the three restaurants,” Heyden said.

Read the full article at: Steak 'n Shake's construction begins.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

US Commercial Property Investment Up 57% in 2011

By +Liam Bailey for ipinglobal.com

Monday 30 January 2012

Fuelled by exceptional growth in retail property and low-rise apartment investment, American commercial property investment grew 57% year on year in 2011 according to the latest data from Real Capital Analytics.

The data shows that more than 14,700 properties, each worth at least $2.5 million changed hands in 2011, with retail property investment up 91% compared to 2010 and low-rise apartment investment up 70% compared to the previous year. This was in spite of the fact that turmoil in the MBS market curbed finance leading to a slowdown in transactions in the second half of the year. However, the office and hotel sectors did see an effect from this, with transactions falling sharply in the final quarter following large year on year growth in the previous six quarters.

According to the firm the rise was fuelled by debt-laden owners selling off assets acquired during the boom years at low prices, at the same time as investors were seeking increased yields from income-producing properties.

"Buyers have started to broaden their horizons both geographically and by property type," the firm said.

This is by far the most positive data we have seen on commercial property investment in the US last year. Normally when you see such large growth it is because of an exceptionally poor performance in the previous dataset, but this is not the case here; we know that US commercial property transactions held strongly in 2010.

Read the full article at: US Commercial Property Investment Up 57% in 2011
A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Commercial Real Estate Sectors in U.S. Performing Well in 4Q, Says CBRE Report

Posted by Michael Gerrity 01/10/12 10:43 AM EST

Summary:

• U.S. Office Vacancy Rates Drop to 16% in 4Q, 2011.
• Industrial Availability Continues to Decline; Now 13.5%.
• Retail Availability Holds Steady.
• Apartment vacancy Falls Amid Robust Demand.

Key Quotes:
The office market improved steadily throughout 2011, ending the year with a vacancy rate down 50 bps from year end 2010, at 16%.

Industrial availability ended 2011 at 13.5%, a 80 bps decline from prior year end. With most local markets seeing improved availability in Q4, it appears that modest economic growth is continuing to spur demand for industrial space.

At 13.2%, Q4 2011 retail availability - while unchanged from the previous quarter -- was 20 bps higher than the rate at the end of 2010. However, the stabilization of retail availability during the second half of 2011 marked an end to the relentless increases that characterized the retail real estate market since the recent recession.

Q4 2011 results highlight the continued strengthening of apartment fundamentals, fueled by occupancy gains as more former homeowners elect the rental option. The Q4 2011 vacancy rate of 5.3% was a 70 bps drop from Q4 2010. 

Read the full article at Commercial Real Estate Sectors in U.S. Performing Well in 4Q, Says CBRE Report.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga

Growth in Commercial Real Estate Markets Expected in 2012

press release

WASHINGTON, DC, Nov 28, 2011 (MARKETWIRE via COMTEX) 

Summary: Commercial real estate growth was flat in 2011, but economic growth and more jobs signal a stronger 2012.

Key Quotes:

Lawrence Yun, NAR chief economist, said there is little change in most of the commercial market sectors. "Vacancy rates are flat, leasing is soft and concessions continue to make it a tenant's market," he said. "However, with modest economic growth and job creation, the fundamentals for commercial real estate should gradually improve in the coming year."

The commercial real estate market is expected to follow the general economy. "Vacancy rates are expected to trend lower and rents should rise modestly next year. In the multifamily market, which already has the tightest vacancy rates in any commercial sector, apartment rents will be rising at faster rates in most of the country next year. If new multifamily construction doesn't ramp up, rent growth could potentially approach 7 percent over the next two years," Yun said.

Vacancy rates in the office sector are expected to fall from 16.7 percent in the current quarter to 16.1 percent in the fourth quarter of 2012.

Industrial vacancy rates are projected to decline from 12.3 percent in the fourth quarter of this year to 11.7 percent in the fourth quarter of 2012.

Retail vacancy rates are likely to decline from 12.6 percent in the current quarter to 11.8 percent in the fourth quarter of 2012.

The apartment rental market -- multifamily housing -- is expected to see vacancy rates drop from 5.0 percent in the fourth quarter to 4.3 percent in the fourth quarter of 2012; multifamily vacancy rates below 5 percent generally are considered a landlord's market with demand justifying higher rents.

The full article can be read at Growth in Commercial Real Estate Markets Expected in 2012.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga