Charlotte’s SouthPark on Target

Posted on February 18, 2011 by - Charlotte, In the News, Retail

Charlotte Business Journal
February 18th, 2011

A 10.5-acre tract in SouthPark is being targeted for an ambitious development with a Target-anchored collection of shops and apartments.

Renderings outline plans for what’s billed as The Market at South Park. Lincoln Harris, a consultant to property owner Atlanta-based Reynolds Capital Group, has made inquiries with area brokers about tenants for the proposed project. The site lies behind the SouthPark Towers on Fairview Road on vacant land bounded by Piedmont Row Drive South and Barclay Downs Drive.

The biggest retail name linked to the project: Target Corp., one of the main anchors at high-profile developments such as Blakeney and the Metropolitan on the edge of uptown. Target could make a decision on the Charlotte development within a few weeks, an industry source says…

Andrew Jenkins, Managing Partner

Andrew Jenkins, Managing Partner, KARNES

Although retail demand remains weak, the submarket that includes SouthPark had some of the best leasing activity in Charlotte during 2010, according to Karnes Research Co. Last year, the area absorbed 72,170 square feet of retail space, up from a net loss of 257,023 square feet in 2009. The retail vacancy rate in the submarket dropped to 8.6% in December from 9.8% year end 2009. Overall, the retail vacancy rate for the greater Charlotte market increased to 9.9% from 8.4% in 2009…

Still, Andrew Jenkins, managing partner at Karnes, says that a new retail project opening in 2012 or 2013 could benefit from continued improving consumer confidence and spending. In the current economic climate, new development is “going to go to the places with the best demographics in terms of existing households and incomes,” he says. Using that criteria, SouthPark is a safe bet, Jenkins says…

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Atlanta firm buys into Poyner Place

Posted on February 8, 2011 by - In the News, Retail, Triangle

February 8th, 2011
News and Observer

An Atlanta real estate firm has bought most of the Poyner Place shopping center in North Raleigh for $18.15 million, which is less than half what a pension fund paid for the same property five years ago. The investment is the first in the Triangle by RCG Ventures, a private firm that owns more than 50 retail properties across the country…

The smaller retail spaces in the center struggled initially, said Brian Reece, a partner with Karnes. “I just think it’s really a visibility issue,” he said. “The road network is below it and so it’s kind of up top, and if you’re not there within the Target area you’re not going to see it.” But the entire area is rapidly being redeveloped, including the opening of the Walmart and a Courtyard by Marriott. There’s also considerable land behind Wal-Mart where additional houses or apartments could be built. “With the connection of Capital Boulevard and Interstate 540 right there, that corridor is definitely on the radar screen for a lot of people,” Reece said….

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Commercial appraisals tricky in a down market

Posted on February 4, 2011 by - Charlotte, In the News, Industrial, Office, Retail

February 4th, 2011
Charlotte Observer

Mecklenburg County tax appraisers will start revaluating local commercial real estate next week – a task that could produce unwelcome surprises for both property owners and local government. Property owners have been paying taxes based on values set in 2003. State law requires revaluation every eight years – leaving officials wrestling with setting values in one of the worst markets in decades….

Calculating rental income could also prove tricky, said Andrew Jenkins, analyst and managing partner with Karnes, a real estate research firm. Actual lease rates are often lower than advertised asking rates because landlords are granting concessions to lure tenants during the downturn…

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