Metro Jackson, Mississippi, does not see the big spike-ups in a good economy, but the upside is that Jackson does not suffer large vacancies in a soft market. New construction projects are targeted toward specific users, and quality is emphasized over quantity. The office market in the Jackson metropolitan area has evolved into four areas that are stable, despite the national decline in larger markets.

Even though the market is relatively stable, the downtown business district has had higher than usual vacancies recently with the consolidation and downsizing of AmSouth Bank, which put a significant amount of sublease space on the market. In addition, a few law firms and national companies such as Legg Mason and Salomon Smith Barney have relocated to suburban markets to be closer to their clientele. Even so, it appears that with whatever exodus is occurring downtown, the larger tenants adjacent to the vacated spaces are growing and absorbing the available space.

The area that has seen the most significant amount of recent development is the Old Canton Road corridor between Meadowbrook Drive and Northside Drive, fronting the Interstate 55 Frontage Road. Kerioth has developed Meadowbrook Office Park, a 100,000-square-foot office campus consisting of four buildings that are 98 percent occupied. Mattiace Properties has developed 160,000 square feet of office and retail space in a two-phase project called Highland Bluff. The 85,000-square-foot first phase was 100 percent leased prior to completion. Highland Bluff North, Phase II of the Class A complex, was completed on March 1 and is 60 percent leased; ongoing lease negotiations will put the building at 100 percent occupancy within the next 8 months.

The Lakeland Drive corridor, which runs east and west through middle of Jackson, has had limited new mid-rise or high-rise office product recently developed in the market, but the existing buildings are maintaining 97 percent occupancy. Smaller, single-story user/owner buildings are dominating the Lakeland Drive corridor. Due to this area’s close proximity to all other markets and the ability of the end user to borrow money at today’s rates, these tenants feel the need and desire to create future equity by buying or building their own buildings.

Highland Colony Parkway, which begins at Interstate 220 in the Jackson city limits and runs north to Highway 463 in Madison, Mississippi, continues to be the future contender for Class A office product. Land is plentiful and land prices are reasonable for rental rates to be competitive. The area also offers a safe environment closer to tenants’ residences.

Stay tuned for new product at Highland Colony Parkway to open soon. One project in particular is rumored to be the ultimate high-end fashion retail and office product in the area. Located at the northwest quadrant of I-55 and Highland Colony Parkway, this new development is called Old Agency Square at Highland Colony.

Retail

Due to renovations and façade improvements, older shopping centers in Jackson are holding their own against new centers that have opened over the past few years. Several properties are undergoing renovations and expansions.

Arlington, Virginia-based Mills Corporation recently purchased the 961,000-square-foot Northpark Mall, the leading retail destination in Mississippi. Northpark Mall is located north of Jackson near I-55 in Ridgeland. Mills plans an expansion of the mall, which will include an ice rink, a skate park and new retailers. The cinema will be moved into the mall and more screens may be added to the existing 14.

Two older strip centers, Westland Plaza Shopping Center and Meadowbrook Shopping Center, have been renovated recently. Westland Plaza, located less than 2.5 miles from downtown Jackson, is nearly 100 percent occupied. This center has announced the addition of a Walgreens; the store is currently under construction and scheduled to open later this summer. Meadowbrook Shopping Center, located in north Jackson at the intersection of North State Street and Meadowbrook Road near I-55, is 100 percent leased. The Piggly Wiggly store at Meadowbrook recently expanded, adding a bakery and delicatessen. Meadowbrook also recently completed leases with Marty’s Menswear and Dollar Tree. Both properties are marketed by Stirling Properties of Covington, Louisiana.

Haverty’s Furniture has moved from Purple Creek Shopping Center to County Line Plaza, backfilling a portion of the space formerly occupied by Home Place. The County Line Road corridor has exploded as a shopping mecca since the early 1980s.

The Fondren community is quickly becoming a shopping center hub. The eclectic area around the triangle formed by the intersection of North State Street and Old Canton Road is bustling with trendy retail shops, award-winning restaurants, antique merchants, and gift and home furnishings stores. In 1998, the National Main Street program selected the area as its first and only urban neighborhood project in Mississippi, and today Fondren is experiencing a retail renaissance.

An 18-screen, stadium-style seating movie theater is planned for the southeastern portion of the Dogwood Festival Market site. Dallas-based Rave Motion Pictures is scheduled to open the 82,000-square-foot theater in early 2004.

The former Gayfer’s Department Store at Metrocenter is for sale for $2.9 million. Dillard’s owns the 173,565-square-foot former department store building. The Lasman Property Group at Marcus & Millichap, Fort Lauderdale, is handling the listing.

- Lynn Leonard, NewBridge Retail Advisors


©2003 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.