Wilmington retail is continuing to expand, according to Philip Kraus and Stephanie Bynum of Maus, Warwick, Matthews & Company. The area' popularity as a retirement destination and the growing population of the University of North Carolina at Wilmington ensures continued retail growth.

The total retail inventory is approximately 2.1 million square feet with more than 100,000 square feet vacant. That' an occupancy rate of 95 percent for all major centers except for the mall, which recently expanded to 2 million square feet.

The local mall on Oleander Drive was just purchased by Westfield and expanded by 75 stores. A new Dillards now joins previous anchors Belks, Sears and JC Penney.

Retailers seem to be flocking toward large strip centers. Tenants tend to target either the retirement or college-age community. Over the past several years, retail development has been much more upscale in design and tenant mix.

Barclay Commons, which is in mid-town and just south of the mall on Oleander, is growing with the addition of new retail stores and office space. Presently, a health spa, several medical offices, Port City Java and some local retailers have leased space here. Future plans call for several more 15,000- to 20,000-square-foot buildings, a 70,000-square-foot corporate building for PPD and perhaps a hotel, since this property is close to New Hanover Hospital.

The hotspot for new retail development is in the north submarket along Military Cutoff near Landfall and the beach. The Forum, near the beach, is a new retail development by David Swain & Associates. Across the street from the Forum, a development known as Mayfair is under construction. This mixed-use development will incorporate office, retail and residential space. These two centers are the standard bearers for the future of Wilmington retail centers.

The south Wilmington/Carolina Beach market is expanding as well, both in residential and retail aspects. The area includes a new Super Wal-Mart, and a second store is being developed. Lowes Home Improvement plans to locate there, along with many restaurant chains. Home Depot is also considering opening a store in this area.

The expansion of strip malls has brought Old Navy, Bed Bath & Beyond, Best Buy and SteinMart to Wilmington. These retailers have all recently signed leases. Occupancy won1t take place for several months, though, because all of them, with the exception of Best Buy, are renovating older spaces.

Wilmington proper is not the only market in the area that is expanding. Cross over the Cape Fear River into the central business and historic district of Wilmington, then drive half an hour and you will approach the small town of Shallotte in Brunswick County. It now hosts it' own Super Wal-Mart, Lowes, Belks and Home Depot. With the influx of retirees and the expansion of businesses based in Wilmington, the area has grown by approximately 40 percent recently.


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