SOUTHEAST SNAPSHOT, FEBRUARY 2006

Columbia Retail Market

Last year, the Columbia retail market continued its historically steady pattern of retail expansion. The market's 10 million square feet of inventory has maintained occupancy levels in the 90 to 92 percent range in most major submarkets throughout the region.

Wal-Mart continues to be very active in the market with four new locations reportedly committed — a Bush River Road redevelopment site plus new locations at the Interstate 77/Killian Road interchange, in the town of Batesburg-Leesville, and in the Redbank area of Lexington County. Target has also been active with its new store at the Shoppes at Woodhill and the company is planning a location in the Lexington market on U.S. Highway 378.

Kahn Development's Village at Sandhills lifestyle center — the first of its kind in Columbia — continues to add big box and inline retailers. JC Penney recently relocated its Columbia Place store to a free standing store in the center, which was followed shortly thereafter by the opening of The Home Depot. Belk will also open a store at the Village soon.

The area's four enclosed malls are each experiencing some level of tenant transition.   Columbiana Center remains the most desired location as the mall is looking for another tenant for Parisian's soon-to-be vacant space. Reportedly, JC Penney is studying the market, but an official announcement has not been made. The department store was one of Columbia Place's four anchors. Richland Fashion Mall continues to experience the highest vacancy rate. But, a major mixed-use redevelopment will take place as a vacant anchor store will be demolished and another wing of retail space will be converted to a non-retail use. A residential component near Richland Fashion Mall has also been announced.

The Garners Ferry Road/Sumter Highway corridor is emerging as the region's fourth retail focal point for big box users. Sears backfilled the vacancy left by Wal-Mart's relocation, while Target, Cost Plus World Market and Bed Bath & Beyond anchored the Shoppes at Woodhill redevelopment project.

A great deal of developer interest is focused on the I-77/Killian Road and nearby Farrow Road/Clemson Road intersections. The booming housing market in northeast Columbia coupled with major road improvements and the availability of large commercially zoned land tracts are the economics driving home improvement warehouses.

The Home Depot and Lowe's Home Improvement Warehouse continue to expand and reposition themselves in the market. Eckerd and Walgreens are the most active in drug store expansion.

— Ron Anderson is vice president of research and technology with Columbia, South Carolina-based NAI Avant.

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