Hughes

Trends in the Charlotte, North Carolina, market seem to be mirroring those noticed across the Southeast. According to Garland Hughes Jr., director of anchor leasing with Crosland Inc., there has been an increasing interest in mixed-use developments in the market. Unlike other cities in the area, Charlotte’s high-income and dense areas close to the center city allow development trends to continue toward Uptown Charlotte. These developments introduce several components, offering a lifestyle choice close to the central business district and high-income neighborhoods.

This trend is supported by the addition of a new arena housing Charlotte’s new professional basketball team. This is another entertainment venue bringing the need for restaurants and retail uses to the center city. “The proximity of residents and the growing number of residential units in the center city will provide opportunities for infill development and the potential for mixed uses,” notes Hughes.

One of the newest mixed-use developments in Charlotte is Birkdale Village, which offers more than 300 residential units, 373,000 square feet of retail and 50,000 square feet of office space. Developed by Crosland Inc. and Pappas Properties, with the majority interest being held by Inland, the development has many national apparel and home furnishings tenants and will act as the regional shopping center to residents on the north side of Charlotte, especially those located around Lake Norman. Birkdale is a Main Street development that has won national recognition for the overall development and implementation of residences to the master plan.

The majority of development continues to take place in south/southeast Charlotte. The city has historically grown toward the southeast and the trend continues. As the city grows and new sections of Interstate 485 (the outer belt) are developed, the growth continues to push south toward South Carolina. The new rooftops along Providence Road, Rea Road, Highway 521 and Highway 29 bring life to many new developments. Two new centers have recently opened along Providence Road along I-485: The Promenade, a large center anchored by Home Depot and developed by Childress Klein, and Crosland’s Rea Village, a neighborhood center anchored by Harris Teeter.

Restaurants are becoming more and more important to tenant mixes in Charlotte. “We are seeing anchors and junior anchors placing emphasis on restaurants as possible co-tenants in most of our Charlotte properties,” says Hughes. “As a whole, Charlotte is a very active community. Therefore, we are seeing the fastest-growing restaurant segment to be in the quick-serve restaurant offering quality-oriented foods.” Restaurants are becoming mini-anchors in many developments, such as StoneCrest at Piper Glen in South Charlotte, which offers 14 choices for lunch and dinner.

Saks Fifth Avenue has committed to opening a store in the Charlotte market. This is no surprise to the community; however, the choice of locations has shown another growing trend in the industry. Historically, large department stores such as Saks, Belk and Hecht’s would only agree to locations within enclosed regional malls. These anchor tenants are starting to focus and opportunities in open-air centers. The flip side of this trend is enclosed malls are starting to offer outdoor components to their properties. This is consistent with plans at SouthPark Mall and other area malls in Raleigh and Durham.

Simon Property Group’s SouthPark Mall is currently being redeveloped to add another major department store anchor, Nordstrom, as well as an entire interior corridor of specialty tenants. The main entrance to the center has added two large restaurants, The Cheesecake Factory and Maggiano’s. The mall also is adding a new outdoor area where retailers and restaurants will be connected to the enclosed portion of the mall while offering the shopper a different experience.

Midtown Square, being developed by Collette & Associates and Pappas Properties, will provide a retail center between Uptown Charlotte and three of Charlotte’s premier neighborhoods, Dilworth, Eastover and Myers Park. The development will bring category-specific retail to the center city while providing uses for the adjacent neighborhoods, which are not currently convenient to residents in the mentioned areas.

“A corridor people should keep their eye on in the future is in Uptown Charlotte,” says Hughes. “There are numerous positive developments occurring in the CBD, enhancing the existing entertainment components established by restaurants and fine art facilities.” Charlotte’s old convention center, which is adjacent to the new NBA basketball arena, is slated for redevelopment as a retail anchor to the center city. The redevelopment of the convention center will share momentum with Levine Properties’ plans for a mixed-use development next to the new arena. Other proposed projects in Uptown Charlotte include Grubb Development’s mixed-use community in the “Elizabeth” area and the proposed redevelopment of Midtown Square, planned by Collette & Associates and Pappas Properties. Each of these projects will continue to shape Uptown Charlotte as a retail and entertainment destination.


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