Michael B. Dodds Managing Director Integra Realty Resources – South Carolina

The central business district of Greenville, South Carolina, has experienced considerable growth recently. More than 100 residential units are under construction with an additional 275 units planned. The residential growth has driven recent retail development as well. In March, Mast General Store opened in Greenville’s CBD. The 37,000-square-foot former Meyers-Arnold department store is reportedly the largest retail store in downtown Greenville, and the first Mast General Store outside of North Carolina.

Ramco-Gershenson Properties Trust recently announced the redevelopment of Taylors Square at the northwest corner of Wade Hampton Boulevard and Carolina Avenue. The current 134,000-square-foot Wal-Mart store will be expanded to a 207,000-square-foot Supercenter. An additional 29,000 square feet of new in-line retail space will also be constructed. The Wal-Mart is expected to open in the first quarter of 2004.

“There are fewer but higher-profile new projects currently under development,” according to Bryson Thomason, president of Professional Mortgage Company. “The Woodruff Road area continues to be a top retail address.” As corridors such as Woodruff Road continue to experience considerable growth, traditionally stable corridors such as Laurens Road are suffering. Many of the larger retailers have vacated stores along this previously popular thoroughfare.

Northwest Greenville has drawn considerable interest: AIG Baker developed Cherrydale Point, which has been the catalyst for other commercial developments in the area. With tenants such as Old Navy, Ingles, Ross Dress for Less, a 16-screen movie theater, Goody’s Family Clothing, Pier 1 Imports and restaurants, the local shops are achieving some of the highest rental rates in the market. Smaller shop rents have exceeded $21 per square foot in the Cherrydale area.

The developer of a proposed $20 million shopping center on Wade Hampton Boulevard has met stiff resistance from neighboring residents. A lawsuit may delay the project and jeopardize negotiations with anchor store Target. Centennial American Properties of Greenville has counter-sued for punitive damages against the plaintiffs in amounts to be determined by the court. According to Centennial representatives, Target’s agreement to locate a store at the Wade Hampton-Fairview Road site requires opening the store by October 4, 2004. To meet that requirement, construction must begin September 1, 2003. Reportedly, Centennial is also negotiating with PetsMart and Marshalls.

Recent statistics reported by Reis Inc. indicate that all submarkets of the Greenville/Spartanburg/Anderson market have experienced increased vacancy levels during the past 12 months, with the exception of south Greenville. From the first quarter of 2002 to the first quarter of 2003, south Greenville’s vacancy level decreased from 10.7 to 9.4 percent. The overall market vacancy increased by 170 basis points during that time frame. Experiencing a vacancy rate increase of 340 basis points, the east Greenville market has suffered the most dramatic increase, although the current rate of 7.7 percent remains the second lowest rate of all submarkets.

— Michael Dodds, MAI, CCIM, is managing director of Integra Realty Resources – South Carolina

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