Retail Opportunities: Opportunities abound for retailers and expanding shopping centers.
Central Valley Retail Summary:
"As of the mid-year mark of 2011, shopping center vacancy within the Central Valley retail market stood at 10.2%, up slightly from the 9.9% mark that was recorded as of the close of 2010. While we are tracking asking rents as low as $6.00 and as high as $39.00 per square foot, the average asking rent currently stands at $22.26 per square foot (on an annual, triple net basis). Not all of the region’s submarkets, however, have performed equally over the first half of 2011.
While overall vacancy is up, vacancy numbers actually decreased in a number of the Central Valley’s counties. Vacancy has dropped from 10.4% to 10.2% over the past year in San Joaquin County. Located at the north end of the Central Valley, the San Joaquin marketplace accounts for over 11.2 million square feet of shopping center space and includes the communities of Lathrop, Lockeford, Lodi, Manteca, Ripon, Stockton and Tracy. Asking rents currently range from $11.88 to $39.00 per square foot, with an average asking shop rate of $24.69.
Stanislaus County also saw vacancy creep downward. It now stands at 10.9%, down from 11.6% exactly one year ago. This trade area accounts for 7.1 million square feet of inventory and includes the Ceres, Modesto, Oakdale, Riverbank and Turlock submarkets. The average asking shop rent here is $24.29 per square foot. Throughout this trade area we are currently tracking asking rents as low as $9.95 and as high as $39.00 per square foot.
The Fresno County market has also experienced declining vacancy over the past year. It now stands at 10.0%, down from 11.0%. Fresno County includes over 8.1 million square feet of space and includes the communities of Clovis, Fresno, Kerman, Kingsburg, Prather, Reedley, Sanger and Selma. Asking rents here range from $7.80 to $39.00 per square foot, but the marketwide average shop rent stands at $18.74.
The remainder of the Central Valley’s trade areas recorded modest vacancy increases. In general, the deciding factor was population. The markets with the highest population levels - Fresno, San Joaquin and Stanislaus—are the ones where retail demand remains strongest. But that being said, occupancy losses in the remainder of the Central Valley’s markets were minimal. Merced County, with an inventory of just over 1.9 million square feet of space, saw vacancy jump from 9.5% to 12.1% over the past year. This trade area includes the Atwater, Los Banos, Merced and Winton submarkets. Asking rates here range from $15.00 to $28.20 per square foot. The
current average shop rate is $23.01 per square foot.
Madera County, with just over one million square feet of shopping center space, currently has a vacancy rate of 8.0%, up from 6.9% over the past twelve months. This mostly rural trade area includes the communities of Chowchilla, Oakhurst and Madera. Asking rents here range from $6.00 to $27.00 per square foot, but the marketwide average shop rent stands at $15.95. The Tulare County market includes the Dinuba, Exeter, Lindsay, Porterville, Tulare and Visalia submarkets. Vacancy here has jumped significantly over the past year, from 4.5% to 9.8%. Asking rents here range from $7.80 to $33.00 per square foot, but the marketwide average shop
rent stands at $20.01.
Kings County, with an inventory of just 867,000 square feet, is the Central Valley’s smallest trade area and consists of the mostly rural communities of Hanford and Lemoore. Vacancy here has climbed from 5.6% to 6.1% over the course of the past year. Asking rents here range from $6.00 to $39.00 per square foot, but the marketwide average shop rent stands at $22.26." (BT Commercial: Terranomics - Central Valley Retail Report Mid-Year 2011)
Mooney Boulevard Corridor
The region's retail corridor is sizzling with recent activities:
Marinello School of Beauty: Marinello recently opened its doors in March 2012 yet has been defining beauty since 1905, and continues to help talented students make their dreams a reality.
Wing•Stop: Wing•Stop has taken chicken wings to a whole new level by saucing and tossing them in a choice of 9 flavors, and are now doing so in the Kohl's Center since February 2012!
Walmart: Visalia's second Walmart will open at Sequoia Plaza May 16th and is excited to "save people money so the can live better."
Dick's Sporting Goods: Dick's mission is to be the #1 sports and fitness specialty retailer for all athletes and outdoor enthusiasts through the relentless improvement of everything they do, and they will bring this spirit to Visalia coming Fall of 2012 in the former FoodsCo.'s renovated building!
Harbor Freight Tools: This successful tool store delivers quality tools at affordable prices, and has expanded into a larger space.
Forever 21: Opening in the Visalia Mall, Forever21 will sell their "trendy fashions at affordable prices" in July of 2012.
The Habit Burger: This Santa Barbara-based hamburger joint completed a major overhaul of the former Mearle's Restaurant and opened September 2011.
Buffalo Wild Wings: This new restaurant opened September 2011 at Packwood Creek Shopping Center.
There are several other retail centers throughout Visalia for interested retailers and investors to consider.
- Orchard Walk: Anchored by Vallarta Supermarket and Target with Ross for Less, Famous Footwear, McDonalds, Radio Shack, etc. There are restaurant pads and a 20-acre plus pad available across the street. For leasing opportunities, please contact Shane Anderson of Commercial Retail Associates at email@example.com.
- Northside Shopping Center: Anchored by Food 4 Less Supermarket. It also includes: CVS, DDs, Dollar Store, Panda Express, etc. For leasing opportunities, please call Walter Smith of Grubb & Ellis at (559) 447-6222.
- Riverbend Shopping Center: This 9-acre planned shopping center will be located at the southeast corner of Riggin and N. Dinbua Blvd. It will soon break ground. For interest, please call Shane Anderson at firstname.lastname@example.org.
- Mary's Vineyard: This center is ideally located along Highway 198 at Ben Maddox and is anchored by Savemart with CVS, McDonalds, Taco Bell, KFC and other retailers. For leasing opportunities please call Gerald Cross at (559) 256-2432 or Steve Rontell at (559) 256-2445 of Colliers International.
- South Mooney Blvd.
- Sequoia Plaza, Sequoia Mall, and Former FoodsCo
- Visalia Mall
- Downtown Visalia
- North Dinuba Blvd.
Other sale or leasing opportunities include:
Highlights on Visalia's Major Retail Centers
Located at the corner of Mooney Boulevard and Walnut Avenue, the Visalia Mall stands as one of the most popular commercial retail centers in the Central Valley. The center also boasts the second largest traffic counts in Tulare and Kings counties with a population in excess of 629,000. Historically, the Visalia Mall was constructed in 1964 and was the first enclosed shopping mall to be built in the state of California. The Visalia Mall is made up of 75 popular stores and includes two major retail anchors JC Penny’s and Macy’s. This mall is currently owned by General Growth Properties (http://www.ggp.com/). For leasing opportunities contact Babette Y. Kubota, Leasing Representative for General Growth Properties at Babette.Kubota@ggp.com
The Sequoia Mall is located at 3303 S. Mooney Blvd., at the intersection of Mooney Blvd. and Caldwell Ave., Tulare and Kings counties highest traffic counts are recorded here. This 220,234 square feet center is comprised of a variety of stores. The major anchor in this mall is the Regal Cinemas movie theater, a twelve screen cineplex that hosts a variety of the latest movie releases. The second anchor in the Sequoia Mall is the Sears Department Store, which provides shoppers with the most modern appliances, tools, electronics, and apparel. Hobby Lobby opened in January 2011 in the former Mervyn's building, adding fabrics, arts and hobby goods in a renovated 59,000 SF building. Mainland surf shop opened a new retail store and Rabobank filled the former Blockbuster Video Building. There is also an opportunity to build a 6000 SF restaurant along Mooney Boulevard. Currently the Sequoia Mall has leasing opportunities, if interested contact Rick Turner.
One of the newest and largest shopping centers in Visalia is Packwood Creek. Encompassing both sides of south Mooney Blvd, Packwood Creek includes several major retail anchors such as Target, Lowes, Best Buy, Sports Chalet, and Pier 1 Imports. Other stores in this area provide products that specialize in arts & crafts, music instruments, home improvement and modern fashion. This retail plaza also has a variety of wonderful restaurants such as Olive Garden, Mimi’s Café, Chili’s Bar & Grill, Firkin & Hound Pub, Panera Bread, and Chipotle Mexican Grill and Buffalo Wild Wings. There is also more than 30 acres of new vacant land zoned for retail development directly across the roadway from the region's Costco; serving as one of the highest grossing stores in the company line. For more information on leasing opportunities, please call Patrick Orosco at 831-649-0220.
Cameron Avenue Between Lowes and Costco
Orchard Walk East:
Situated on the corner of Riggin Avenue and N.Dinuba Boulevard is one of Visalia’s most recently established shopping centers, Orchard Walk East. One of the main attractions to this 330,000 sq. ft. commercial hub is the new and very expansive Target store. Since its opening, Orchard Walk has rapidly expanded to include such stores as Ross For Less, Famous Footwear, Radioshack, GameStop, and many local/national eateries (McDonald’s, Subway, Mountain Mike’s Pizza, Figaro’s Mexican Grill, etc.). Vallarta Supermarket opened to huge crowds in September 2010. The addition of this Mexican grocer with a taqueria, bakery, torteria, carneceria, and fruit bar is drawing customers from miles away. The supermarket is positively impacting sales for neighboring retailers in the center as well. For more information, please contact Shane Anderson with Commercial Retail Associates at (559) 650-1300.
Walmart- Opened May 16th, 2012!
The Sequoia Plaza shopping center is located on the corner of Mooney Boulevard and Cameron Avenue. The former home of Home Base, this warehouse building is available for lease or sale. Many smaller businesses are located in this area such as a Mexican restaurant, Leslie’s Pool Supply, religious bookstore, and Americana diner. If interested in the former Home Base, contact Vincent M. Rocha with SBRE at email@example.com. For information on the former Circuit City, please contact Steve Rontell at firstname.lastname@example.org.
The Village at Willow Creek:
This neighborhood commercial center is located at the corner of Riggin and Demaree Ave., in the fastest-growing area of Visalia. The 20-acre center is anchored by Lowe’s with other tenants ranging from a local credit union to a sit-down restaurant and a Walgreens national drug store. The village features design amenities such as courtyards and a plaza and lushly landscaped pedestrian walkways making it a welcome addition to this area of Visalia. For leasing opportunities contact the Mangano Company at (559) 732-2200.
Key West Plaza:
Key West is filled with an abundance of options for shoppers and diners. The shopping center, located at the intersection of Demaree Road and W. Noble Ave., includes specialty shops, a Save Mart Supermarket, and casual family dining such as a pizza parlor and Mexican restaurant. A Chase, bank, gas station, Starbucks and McDonald’s are also featured in Key West. The thriving development has a low vacancy rate. The northwest location is convenient to the Industrial Park, new housing developments and Visalia’s distinguished gated communities (Cited from the Mangano Company).
Mary’s Vineyard is the one-stop shopping location in southeast Visalia on the corner of Ben Maddox Way and Noble Avenue. Shoppers will find a Save Mart Supermarket, CVS Pharmacy, flower shop and a woman’s boutique, along with many more neighborhood uses. The shopping center is located just off state Highway 198 near Ben Maddox exit. The close proximity of Highway 198 is convenient for shoppers in other nearby communities such as Farmersville, Exeter and Woodlake. For more information on leasing opportunities please contact Hyde Commercial Real Estate.
Country Club Plaza:
The Country Club Plaza is a new shopping center located on the corner of Demaree Road and Houston Avenue, just north of Visalia’s InShape Country Club and across from new housing complexes. This plaza is home to the fine dining Mexican restaurant Azul, a health club, and CVS Pharmacy. Currently this location has leasing opportunities with spaces ranging from 1,700-8,300 sq. ft, as well as space to support a new 35,000 sf supermarket. For more information please contact Hyde Commercial Real Estate.
Central Valley Retail Report 2011