Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/122387
ON THE GROUND: BiRmiNGHam, ala. Big developments are under way in the magic City The Birmingham, Ala., retail market finally Lakeview Entertainment District, which grew seems to be getting legs after a hard slog. organically for some years, got a boost last The long-awaited entertainment district year with the opening of Retail Specialists' 29 project called The Forge, downtown near Seven residential-retail development. "New the Birmingham-Jefferson Convention Com- restaurants in particular have been interested plex, saw the opening of its first restaurant in the area," said Jolly. in February, a Todd English P.U.B., at the Across the market, last year was good for Westin hotel. Texas de Brazil and Octane restaurant openings, says Ashford. Big Bad Coffee will be opening in the district too, and Breakfast, Mooyah Burger, Seasons 52, Tin other restaurants and retailers will be signing Drum, Tony's Spaghetti House and World on in the near future. "The success of the of Beer were among the area's openings or entertainment district is going to depend on announcements. Firehouse Subs unveiled the growth of the meetings-and-conventions plans early this year to open a shop in the Five business, and there's some indication that's Points area, and Jesse's Steaks, Seafood & happening," said Robert Jolly, president Tavern is opening a restaurant in the subur- of Retail Specialists, a Birmingham-based Vulcan Park and MuseuM commercial real estate firm. "The opening of ban Patton Creek Shopping Center. A Von Maur store will open at Riverchase the Westin is going to help drive the meeting can lease," said Ponder. "But on the whole, Galleria, in Hoover, Ala., in November. Gro- business. But the district won't entirely be leasing volume is up, and investors are inter- cery chains are on the hunt for locations in supported by out-of-towners. It is also creat- ested in Birmingham properties again." the area among the dominant Publix and ing some excitement locally, since there Some 292,000 square feet of retail Walmart chains. Winn-Dixie finalized a lease space was absorbed in Greater Birmingham in a former Bruno's supermarket at the last year, versus roughly 144,000 square Inverness Corners shopping center, taking seven counties of the Birmingham-Hoover feet in 2011, according to ESG Commercial about 54,000 square feet. Bruno's was once metro area, is home to about 1.1 million Real Estate. Retail occupancies have edged a major local name, but the stores are all gone people. The city's manufacturing base origi- up too. The metro-area occupancy rate was now. "Most of the closed Bruno's locations nally drove the economy, with steel being 87.6 percent in the fourth quarter of 2011 have found one kind of new use or another," especially important, so much so that the and increased to 88.6 percent a year later. said Ashford. "But there's still probably room city was nicknamed the "Pittsburgh of the "The market is trending in a better direc- hasn't been anything else like it downtown." Greater Birmingham, comprising the for growth in the grocery sector." South." Today Birmingham's economy is tion," said David Ashford, a broker at Birming- more diversified. Still, this diversity hardly ham-based Southpace Properties. "A lot of vacancies, according to Andrew Chason, protected the local retail market from the retailers are in a growth mode, and they've a retail specialist in the Birmingham office recession. "Birmingham seldom saw boom- accumulated capital for expansion. The local of Marcus & Millichap, who says the trend and-bust cycles in commercial real estate," economy has stabilized, and some places are will continue. As retailers return, REITs and said Terry Ponder, founder of locally based doing well enough to provide retailers opportu- private investors are increasingly taking an Ponder Properties Commercial Real Estate. nities for growth, so they're taking them." interest in Birmingham retail properties. "But with this recession, we had the bust The downtown entertainment district without the boom. It was so bad we thought might be the most visible retail nexus — and our phones had quit working at one point." one of the few places seeing new Retail recovery was slow until last year. "The recovery hasn't been complete, and there development right now — but other parts of Greater Birmingham are areas that still have are attracting retail- more product than they ers as well. The 254 SC T / MA y 2 0 1 3 Retailers have been slowly backfilling "yields for well-located, high-quality properties are strong, and they can often be acquired for a lower cost per square foot than in larger markets," Chason said. "With the turnaround in the economy, investors are also anticipating rent growth. Retail's making a comeback, and investors have noticed." — Dees Stribling