While he comments on the overall slowdown of retail expansion in Mobile, Alabama, Don Kelly, senior vice president and partner of The Mitchell Company in Mobile, says there have been big box expansions and upgrades as well as remodeling, and many centers are re-tenanting.

Retail vacancy rates range from 10 to 12 percent in the area, says Kelly, explaining, "The market has gone through turmoil with the supermarket bankruptcy of the Bruno'/Food World chain and the merger of Delchamps and Jitney-Jungle and the subsequent bankruptcy of that chain." Some of the stores were sold off, and some were simply closed, he says. In addition to six Mobile area Delchamps Supermarkets that have closed recently, a Home Place and two Weiner' stores have closed.

However, Kelly notes that there are several retailers new to the Mobile market: Best Buy, Rack Room Shoes, Staples, Linens 1n Things and Abercrombie & Fitch. Also, the new Schillinger Road SuperTarget, scheduled to open next spring, will be the first SuperTarget in the Gulf Coast region. This store will serve the rapidly growing western residential sector. The project, developed by Baker Properties, also includes three outparcels.

Jubilee Square, an existing Dillard'/Home Depot complex, is expanding; AGI Baker is doing the 40,000-square-foot addition, which will include Stein Mart, Goody', T.J. Maxx and Rack Room Shoes. All of these stores will open this fall. A theater and 30,000 square feet of specialty retail stores will open later this year and next spring. The project includes an O1Charley', as well. Also in the area, CBL' Springdale Mall has remodeled and re-tenanted and Colonial Bel Air Mall has added new stores.

Wal-Mart has a new supercenter under construction near Interstate 65 and Dauphin Street, north of the Springdale Complex in the central part of Mobile. This store is scheduled to open next year. CVS/pharmacy and Walgreens have almost completed their expansion programs in this market as well.

The majority of development in the Mobile area is taking place in areas of residential growth such as West Mobile and Eastern Shore, says Kelly, who believes people should watch the West Mobile/Schillinger Road and Eastern Shore/Daphne areas for increased retail development in the near future. "Retailers continue to consider these markets for their expansion plans in the market," he says.


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