With linkage to the Port of CHS, large European company ThyssenKrupp will open a 39,000 SF distribution center in Palmetto Commerce Park in North Charleston. David Wren has the announcement here.
N CHS Retail Node Getting Conn’s HomePlus, a new La-Z-Boy Home Furnishings; Plus West Elm Opens Downtown
The regional retail mass around Tanger Outlets at I-526 and I-26 in N CHS is getting two new boxes next to the new Field and Stream that will open later this month – a 45.8k SF Conn’s HomePlus was announced and La-Z-Boy Furniture Galleries will open a 16.2k SF box next to Conn’s and both should be open in Spring 2016.
Also, West Elm, the high-end furniture shop and cousin to Williams-Sonoma and Pottery Barn will open its new 10k SF store at 484 King Street downtown.
If an office user is looking for 10,000 SF or more in Charleston, they have a handful of options, especially for quality Class “A” space and if they need 20k SF (enough for about 100 employees), and the options are even fewer. Yet demand is at its highest point since 2002 with a 90.2% overall occupancy in the metro area’s 12.2MSF of office space and it is 95% in the 2.6MSF Lower N CHS Class A/B sub-market, all according to the Colliers International Q2 2015 Office Market Report. At an average Class A downtown rent of $32.60/SF, CHS’ CBD rents are the highest in the Southeast U.S., outside of Fort Lauderdale and Miami – yep, higher than rents in the downtown areas of Charlotte, Atlanta, Raleigh, Nashville and Tampa and all the markets in between. And, suburban office rents are the 4th highest in the Southeast, behind the same three and just behind Nashville. That is all the result of office-using employment at the highest point ever in the Charleston region (all available at the following link for Colliers Q2 2015 Office Market Report for Charleston).
But office development is underway from the Cigar Factory renovation and 385 Meeting Street former AT&T Building downtown to the Anchor Center renovation of a long-vacant 156k SF former Navy Base building at Noisette, to the new Faber Plaza 125k SF office building at Leeds Ave and I-526 in Lower N CHS and Holder Properties recent delivery of a 75k SF office building at Daniel Island. Many are pre-leased and leasing up during construction, while others like the new Faber Plaza are speculative, but expected to be win by default as large blocks of space are at a minimum, at a premium, and the demand continues. John McDermott of The Post and Courier has the story on the lack of new development, yet continued demand and rents pushing up, all resulting in some still limited new development. We at Colliers believe we could use more.
Another announcement of a new retailer in CHS – Aldi, the German grocer and distant cousin to Trader Joe’s – is preparing to open August 27th at 10015 Dorchester Road on the site of an old bowling alley. The 15k store has about 1400 items vs a typical grocer’s 30k SKUs. A second Aldi for CHS was planned, this one in Mount Pleasant near the Wal-Mart SuperCenter at Market at Oakland, but doesn’t seem to be progressing (announced in 2014), according to the article from Warren Wise of The Post and Courier. Competition in Summerville will be stiff with three nearby Wal-Mart Neighborhood Markets – one to open next week at Bacons Bridge and Dorchester Roads, another next week at Ladson and Miles Jamison Roads and a third still planned at Dorchester Road and Patriot Blvd.
The Medical University of South Carolina will consolidate some 300 back-office employees into Parkshore Centre, a recently-purchased 30-year old office building in West Ashley. MUSC paid local developer Durlach Associates some $28.4M ($242/SF) for the renovated and LEED certified 117k SF 3-story multi-tenant building where they already occupy about one-half of the building. Similarly, Roper St. Francis Healthcare is building a $28M, 130k SF building in Palmetto Commerce Park where it plans to consolidate some 600 non-clinical workers in early 2016. John McDermott of The Post and Courier has the story here.
Warren Wise of The Post and Courier gives us a great update on retail/restaurants coming and going across the CHS region.
- Chipotle is looking at two more sites (they have two already – one on Rivers Avenue in N CHS and one at King/Calhoun downtown); the two new sites would be in West Ashley at 2051 Sam Rittenberg Blvd. near Citadel Mall, and the other in a former mattress store at Centre Pointe near Tanger in N CHS. How ’bout Summerville or Mt. Pleasant?
- Velocity Air Sports plans to open an entertainment facility with trampoline dodge ball and such at the 40k SF former Sofa Super Store at 8551 Rivers Avenue in N CHS.
- A local pharmacy, Delta Pharmacy and Medical Supply will open its 7th location in Hollywood inside the Pigg.
- Lulu Burgess of Beaufort will open a 1,285 SF store at 409 King St.
- A wedding boutique store, Steel Magnolias Boutique, has opened at 416-A Old Trolley Road in Summerville.
- PowerFit, a personal trainer, has leased 2,400 SF at Morgans Point Road in Mt. Pleasant.
- A new Sunoco station is set for a re-grand opening in Summerville at 9910 Dorchester Road.
Anchor Center is a 1950s, large floor plate office building in the Noisette development in N CHS and contains 156k SF. The building will be renovated to attract big users, including government contractors, government agencies and tech companies, according to its new owner. The Post and Courier’s John McDermott has the story.
Boeing, the maker of the North Charleston built 787 Dreamliner, projects demand for some 38k new commercial airplanes over the next 20 years, worth some $5.6 trillion. They anticipate the Dreamliner will capture about 22% of that demand, representing some $2.5 trillion. While the biggest demand (70%) will be for single-aisle planes like the 737MAX that will debut in 2017, Boeing reported they have over 5,700 planes on order, worth some $435 billion including 838 Dreamliners for 60 different customers. David Wren of The Post and Courier has the story ahead of one of the airline industry’s biggest marketing events The Paris Air Show.
The retail giant’s grocery concept, Wal-Mart Neighborhood Market, will open its first Lowcountry store in early June, at Red Bank Road in Goose Creek just east of N Rhett Ave. Three other stores are nearing opening – on St. James Avenue in central Goose Creek, Ladson Road in North Charleston, and Dorchester Road in Summerville. Warren Wise has the article for The Post and Courier.