From a city planning point of view, mixed-use is the hot development topic in Charlotte, North Carolina, according to Alex Dmyterko, president of Crosland, Inc.'s retail division. "There is growing acceptance [of mixed-use projects] by developers and retailers, especially from the traditionally mall-based retailers," he notes. "Mixed-use projects promote connectivity with adjacent parcels but result in fewer outparcel opportunities for single users."

Neo-traditional design also continues to influence the retail landscape for neighborhood and community centers. Buildings are brought forward to the street's edge, with parking behind buildings and parallel on streets. The projects also feature four-sided architecture, plazas and other pedestrian-friendly amenities.

Other trends in the Charlotte retail market include anchored and unanchored urban in-fill projects as well as some two-story in-fill developments. Vertical, anchored retail is a possibility for select areas near the central business district (CBD).

"Government planning agencies continue to increase their roles or influence in development planning," says Dmyterko. "They are much more involved in site planning issues, architecture and land uses. Will this level of interest on the part of public officials translate into public dollars to support significant retail, mixed-use projects with road improvements, utilities, greenways or parking structures? Public sector support will more than likely be needed for significant urban retail developments in or near the CBD."

The majority of development is taking place in north and south Charlotte, Dmyterko states, specifically in the University and Lake Norman areas in north Charlotte and in south Charlotte from the Interstate 485/Highway 49 area to the I-485/US 74 area. This includes Southpark, Ballantyne and Matthews. "These submarkets continue to benefit from interstate proximity, meaningful employment concentration and above-average residential growth and affluence," he notes.

Significant new developments include Phillips Place, developed by Pappas Properties and Lincoln Harris. Located near Southpark Mall, Phillips Place is the first town center/main street mixed-use development for Charlotte and continues to benchmark other developments proposed or under construction. The Mills Corporation's Concord Mills, located northeast of Charlotte in Concord, is another recent project. It has stimulated an increased demand for sites near the mall.

Crosland has developed Stonecrest, the first major retail development with a lifestyle component at I-485 in the Perimeter South area of Charlotte. Stonecrest features upgraded anchor elevations (Target, Regal Cinemas, Harris Teeter) with a village of specialty retailers and restaurants at street's edge. A unique feature of the development is a public gathering place around a fountain plaza, as well as its children's village.

Another recent project of note is the expansion of Southpark Mall. Rodamco owns Charlotte's premiere mall, which is attracting new stores and restaurants to the market, including Nordstrom, Saks Fifth Avenue, The Cheesecake Factory and other specialty retailers. Plans call for peripheral land to be developed with a pedestrian-friendly emphasis including shops and an amphitheater.

Crosland and Pappas Properties are developing Birkdale Village, the first "pure" mixed-use town center/main street project in the emerging Lake Norman submarket north of Charlotte. "Birkdale Village is 'pure' in the sense it includes a mix of retail, restaurants and both residential and office along the main street," Dmyterko explains. "Some other main street projects include either residential or office above the retail, but not both." He adds that the project includes a 16-screen Eastern Federal Theatre along with a core group of national retailers commonly found in malls, such as Gap, Banana Republic, Barnes & Noble, Talbots, Victoria's Secret, Bath & Body Works, Chico's and Starbucks Coffee. "Birkdale Village will be a focal point of activity because of its retailers, restaurants, residents and events on site," says Dmyterko.

The Promenade, developed by Childress Klein Properties, is a large community center in southeast Charlotte at Highway 16 and I-485. Home Depot anchored the first phase. Childress Klein is actively pursuing anchors for future phases.

Crosland has also recently developed two retail centers: Sycamore Commons and Whitehall Commons. Sycamore Commons, a 620,000-square-foot development, is the largest center to be completed in the past 12 months in the Charlotte area. "The center includes eight anchors, three of which are recent entries to the market: Dick's Clothing and Sporting Goods, Costco and Cost Plus World Market," says Dmyterko. "Also central to the project is a 60,000-square-foot village of shops including outdoor seating and a significant water feature as a focal point."

Whitehall Commons is a 550,000-square-foot cornerstone retail center in southwest Charlotte at the I-485 interchange. The development will have the area's first Wal-Mart Super Center, which is currently under construction.

In addition to the developers listed above, there are a number of major players in the Charlotte retail market: American Asset Corporation (AAC), Aston Properties, Cambridge Properties and Faison/Trammell Crow.

Per the Charlotte Real Estate Record, overall retail vacancy was 5.5 percent in December, down from 6.9 percent in June. Several areas are below the average 5.5 percent vacancy, including the north submarkets of Lake Norman (2.8 percent) and University (3.5 percent) and the southeast submarkets of Pineville/Highway 51 (1.3 percent), Matthews/Highway 51 (3.8 percent) and Independence (4.9 percent).

Keep an eye on the Midtown and Uptown areas of Charlotte, Dmyterko recommends. "Expo remains committed to a proposed Midtown site that may break ground early next year," he explains. "The city of Charlotte and Palladium continue negotiations to develop a city-owned site in conjunction with a privately-owned adjacent site for an uptown urban village for shopping and entertainment."

Perimeter South, specifically the Ballantyne area, is also an area worthy of mention. In Ballantyne, there are no less than three proposed retail developments. These include two lifestyle centers, each more than 100,000 square feet in size, and Blakeney, a 500,000-square-foot community center.

The I-485 corridor in east Charlotte -- at either the Idlewild or Albemarle interchange -- is a likely target for another large retail development, provided developers successfully find their way through planning/rezoning issues and comparable store sales for major anchor retailers support continued expansion plans in Charlotte trade area, says Dmyterko.


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