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Charleston retail strategy keeps pace with Gibbs’ recommendations
By Dennis Quick
Senior Staff Writer
In April, when national clothing retailer Brooks Brothers opened its first South Carolina store on downtown Charleston’s King Street, the city’s main commercial corridor, the event fit to a “T” a recommendation made by nationally known urban retail developer Robert Gibbs.
Gibbs, whose Birmingham, Mich.-based Gibbs Planning Group has performed more than 300 U.S. urban retail studies during the past 20 years, was hired nearly four years ago by the city of Charleston to analyze King Street’s retail needs. Gibbs presented his report in 2003. Among his recommendations was that “middle” King Street, between Calhoun and Fulton streets, land more anchor tenants like Saks Fifth Avenue, the flagship of The Beach Co.’s Majestic Square complex on King Street.
Brooks Brothers’ recent occupancy of about some 7,400 square feet of Victoria Center, the April arrival a week earlier of Hampstead, Md.-based menswear retailer Jos. A. Bank at 328 King St. and the forthcoming debut of Philadelphia-based clothier Urban Outfitters at the 16,000-square-foot former Garden Theater at 371 King St.—all on “middle” King Street—add to the shopping corridor’s robust retail scene and pretty much follow Gibbs’ prescription. Since January 2004, more than 40 new stores have opened on King Street.
Between 2003 and 2004, Charleston’s gross retail sales inched upward from about $2.76 billion to $2.82 billion, according to the S.C. Department of Revenue. Those figures reflect the entire city of Charleston, not just the peninsula., because the Department of Revenue’s statistics do not break down a city’s retail sales by district.
During that same period, peninsular Charleston increased its retail space inventory from 505,325 square feet to 516,406 square feet, according to commercial real estate firm Colliers Keenan. Meanwhile, average store rents on the peninsula dropped a few pennies, from $24.79 a square foot in 2003 to $24.61 in 2004, yet remained the highest in the Lowcountry, with East Cooper coming in second at $16.65 a square foot.
Despite the relatively steep rents, King Street retail space is about 92% occupied, according to Sharon Brennan, the city’s economic development director. That figure should increase as Urban Outfitters and other new stores set up shop.
Following Gibbs’ advice that upper King Street’s home-design and boutique character be strengthened and maintained, Columbia-based cabinetmaker M. Craig & Co. will be coming to upper King this month and San Rafael, Calif.-based custom closet-maker California Closets is expected to arrive on upper King in June.
It is possible more retail space will be added to King Street, Brennan says.
“With the vacancies in ground floor space, there is the ability to add businesses to fill those spaces, but there is also the potential for rehabilitating several dilapidated structures and the build out of numerous vacant parcels, such as the ones owned by Robert Clement and his investment group,” Brennan points out.
Among the parcels Clement owns is a six-acre site on the corner of King and Spring streets. Clement has yet to decide how to develop the property.
The city often turns to the Gibbs’ retail strategy for guidance, Brennan says.
“The strategy has been a valuable asset to the city as it has been used in an attempt to recruit recommended types of business to the three areas of the street, to target specific tenants to vacant spaces, and to give guidance to developers and real estate agents as they work with commercial entities,” Brennan says.
“Additionally, it has been used as a marketing piece for the central business district for potential retailers and office users. It has helped to sell the central business district not only to those considering locating in the district, but it also has been valuable in retaining businesses and promoting additional investment in the area.”
In spite of concerns by some that King Street risks becoming just another shopping mall dominated by national tenants, thus weakening Charleston’s local retail flavor, nearly 86% of King Street merchants are local, according to Brennan. National retailers comprise 10.5% of the corridor’s merchants and regional retailers 3.65%.
Dennis Quick is senior staff writer for the Business Journal. E-mail him at dquick@crbj.com.
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