R E T A I L

Steele Creek, a Food Lion-anchored retail property in Charlotte, N.C., is managed by Divaris Property Management Corp.

Unique Retail Opportunities Thrive
in the Carolinas

CHARLOTTE, NORTH CAROLINA — As the trend spreads throughout the country, so lifestyle centers have become a big hit in the Carolinas’ retail markets. Strip centers are still seeing a lot of activity and are often the focus of local retailers. Divaris Real Estate, Inc. (DRE) represents several clients in the Carolinas, and its leasing activity continues to be very active.

Interestingly, one of the most active areas of development in the Carolinas is the expansion of existing malls and the construction of new ones. This is contrary to national trends that have seen a decline in enclosed malls in other parts of the country.

Several major malls in the Charlotte area are adding space and repositioning themselves in order to attract new retailers. For example, SouthPark Mall continues to attract higher-end retailers that are relatively new to the market. SouthPark, considered one of the most prestigious malls in the Carolinas, recently added Neiman Marcus as an anchor to complement Nordstrom that opened there a couple of years ago, and Crate & Barrel also opened a new store. One of the latest changes made to SouthPark is the addition of apartments above the retail space, bringing a mixed-use component to the mall.

Other malls in the Charlotte area seeing activity include: Carolina Place Mall, which recently constructed a new wing featuring REI and other smaller shops; Concord Mills Mall, located near Lowe’s Motor Speedway; and Northlake Mall, where Z Gallerie opened its first store in the Charlotte area.

“I think our malls have fared very well because they have adapted and changed to meet the latest trends in shopping,” says Diana Teitsma, director of leasing and broker in charge of the Charlotte Office of Divaris Real Estate, Inc. “Because of its demographic area, SouthPark has thrived very well and they keep updating it, and with Carolina Place’s new wing, it looks less like a traditional mall. In fact, many of these properties are adding more open-air, lifestyle-type space, taking traditional formats and building out a section that is different, in order to add variety. Another mall in the Carolinas, Streets at Southpoint in Durham, is a new development with mall stores and lifestyle elements. Its look is unique and very appealing.”

Teitsma represents various retailers across the Carolinas, including Panchero’s Mexican Grill in Charlotte, as well as Haverty’s, Simply Fashions and Mighty Dollar. Further, she handles the disposition for Hardee’s, Yum! Brands and BiLo. Also, DRE’s Charlotte office is leasing retail properties for local owners, many of which serve as shadow centers to larger developments.

In general, according to Teitsma, most of DRE’s centers in the Carolinas are fully leased.

“As leasing agents, we try to maintain good relationships with developers, communicating frequently about the condition of the market so that when a new development is online, they will know about us,” says Teitsma. “A lot of tenants have specific needs, so we spend time with them to make sure we can meet their requirements. We do a lot of research in the market to make sure we can offer the best services to our clients and the best locations.”