Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/704472
A u g u s t 2 0 1 6 / S C T 61 Center is happening at a feverish pace." Both Ryals and Whit- mire point out that there are smaller projects under way around Jacksonville Beach and Atlantic Beach, in North St. John's County, where some new residential development is clustered. Gate Petroleum Co. and Gatlin Development Co. recently announced revamped plans for Durbin Park, a 1,600-acre, Bass Pro Shops–anchored, mixed-used development in St. Johns County, Fla. The project will comprise an estimated 2.4 million square feet of retail, 2.8 million square feet of of- fice space, 999 multifamily units and 350 hotel rooms once it is completed. The first phase will comprise some 700,000 square feet of retail space anchored by at least three big-box retail- ers. Phase II will include the Bass Pro Shops store. An improving retail market brings this new wave of development. Jacksonville has roughly 90 million square feet of shop- ping center space, and its vacancy rate has dropped to 6.5 percent, according to Ryals. "That is right in line with where we were in 2006, so we are at levels we haven't seen in a decade," he said. "I'm not even sure if we were ever that low even before 2006. What that is leading to is the most widespread dirt-up development in the better part of a decade." Rental rates have re- mained low. Whereas the Town Center can com- mand rates of $45 to $50 per square foot, Colliers and CoStar are reporting citywide average rental rates in the first quarter at $12.65 per square foot, which represents a 1.66 per- cent drop from first-quarter 2015, according to CoStar. Fortunately, none of this has diminished any in- terest among retail chains to expand in Jacksonville. Bass Pro Shops, Ikea, Red Robin and Top Golf are all new to the market, as are Aldi, Fresh Market, Lucky's Market and such eateries as Chicken Salad Chick Noodles & Co. and Pieology. "Burgers, bur- ritos and pizza concepts are all over town looking for sites," said Ryals. "I wish I could develop a shopping center with 12 end caps and a patio, because every concept wants that." SCT D U R B I N A M I X E D - U S E C O M P L E X P L A N N E D F O R S T . J O H N ' S C O U N T Y , F L A . , W I L L I N C L U D E A B A S S P R O S H O P S I N I T S S E C O N D P H A S E '12 '13 '14 '15 '16 6% 4 2 0 Retail sales Employment Employment Ye ar-on- Y e ar change Sources: Marcus & Millichap, Pricewaterhousecoopers NO t ABLE N u MBER s re T a IL V acanc Y ra T e '13 '14 '15 '16 400 300 200 100 0 Retail completions square fee T ( 000's ) 27% MILL en nI a L s I n P o P u L a TI on I wish I could develop a shopping center with 12 end caps and a patio vs. retail sales 6.4%