SOUTHEAST SNAPSHOT, FEBRUARY 2005

Lexington Retail Market

Philip Sewell, II CEO/President Sewell Development and Brokerage

In Lexington, Kentucky’s retail market, I envision there will be continued redevelopment and refurbishment of established retail areas, such as the redevelopment and expansion of shopping centers, strip centers, and additional properties and facilities that are economically underdeveloped with regard to their highest and best use. In the last 2 years Lexington has been blessed to see the positive results of this type of redevelopment throughout the entire city.

The significant development taking place the last few years is in Hamburg Pavilion, which is located in the eastern part of the city south of Interstate 64. This area has been the hot bed of retail activity, and will continue to grow and attract tenants as it serves Lexington and the surrounding regional trade area.

A large part of the future development appears to be in the southern part of Lexington in the Nicholasville Road corridor. Fayette Mall has announced a 140,000-square-foot expansion to include Dick’s Sporting Goods and numerous additional retail tenants. In addition, redevelopment of existing properties, the construction of Commerce Center (developed by Patrick Madden), and pre-leasing activity on Commerce Center as well as the proposed Brannon Crossing Development (developed by Bellerive Development) hint of new tenants to serve our market as well as additional locations for established tenants.

The largest retail transaction is the entrance into our market of grocery chain E.W. James & Sons, which has taken all of the existing or former Winn-Dixie grocery locations other than the Sarron Drive location.

The most thorough retail vacancy rates are derived by NAI Isaac Commercial Properties, and at this time they quote the retail vacancy rates as follows: downtown 4 percent, neighborhood 7.6 percent, community power centers 1.2 percent, and regional malls 0.0 percent. I do not expect any dramatic adjustments in the near future, due to the restricted availability of retail development land and the consistent desire of retailers to enter and expand in the Lexington market.

— Philip Sewell II, CEO/president, Sewell Development and Brokerage

©2005 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.