High-end retail development continues to flourish in the northwest and northeast quadrants of Columbia, South Carolina, according to Ron Swinson, managing partner with CB Richard Ellis in Columbia. "These are the growth corridors," he says. "Good school districts have continued to fuel the population growth, which fuels retail development. The northwest has the added attraction of Lake Murray, which was once a summer destination but is now a bedroom community."

The largest and most unique development planned is the Village at Sandhills, which will be developed by Kahn Development, according to Michael Dodds, managing director of Integra Realty Resources in Columbia. "The 300-acre development in northeast Columbia will transform an old agricultural area into a town center with offices, housing, a movie theater, high-end stores and an ice skating rink," Dodds says. "Mr. Kahn has done an excellent job working with the local residents and has developed a very attractive master plan."

Another significant project is the continuing development of the lifestyle center at Columbiana Place in northwest Columbia, Swinson notes. The city' oldest shopping center, Rosewood Shopping Center, will soon be razed to make way for a new shopping complex, says Dodds. Publix and several accompanying stores will occupy space in the new center, which is being developed by Regency Centers of Atlanta.

Other developments include two new Bi-Lo centers, one on Sumter Highway and the other in the St. Andrews area; a new Target center in northeast Columbia, which includes Linens 'n Things and Michaels; and two Publix centers that are under construction, says Swinson. The new Publix centers are located on Hardscrabble Road in northeast Columbia and in Irmo near Lake Murray.

"Kohl', a new retailer in the Columbia market, will open locations in Lexington and in the northeast quadrant," Swinson says. "Ross Dress for Less and Abercrombie & Fitch are also new to the market." Walgreens has returned to the South Carolina market, building seven stores over the last couple of years. Several more are under construction and planned for Columbia, Dodds comments.

"Vacancy rates in the grocery-anchored centers are low to non-existent, especially in the previously mentioned growth corridors," Swinson notes. In the slower growing/static markets in town, those vacancies could be averaging 15 to 20 percent.

The vacancy rate at the malls is not as consistent. There are four major malls in Columbia. In the northwest, Columbiana Mall is virtually full with a large amount of development activity in the area. In the northeast, Columbia Mall has experienced some vacancies in the last few years as the most significant retail development has moved several miles farther out of town. The two in-town malls have historically experienced significantly higher vacancy rates, although Dutch Square Mall has done better recently due to the addition of Mercantile' J.B White store as an anchor a couple of years ago. Richland Fashion Mall, which was redeveloped by L.J. Hooker some years ago, has Parisian, J.B. White and Belk as anchors but has had to lease a large amount of space as a call center and still has significant vacancy. There are few true power centers in Columbia and those are relatively new and full.

"While the northwest and northeast, including Blythewood, will continue to experience significant retail activity and growth for the foreseeable future, one market that is starting to experience some growth is the southeast along the Sumter Highway," says Swinson. "A new Lowe' Home Improvement Center and Bi-Lo-anchored center have recently been opened and Wal-Mart has purchased a 38-acre tract on which it will develop a super center in a couple of years."

"Retail activity continues to be steady in Columbia," Swinson continues. "Being the state capital and having the presence of the University of South Carolina and Ft. Jackson, Columbia tends to maintain steady growth in the retail sector without experiencing the booms and busts other markets may experience. We look for this to continue."


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