Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: SUNDAY, February 23, 1992 TAG: 9202230051
SECTION: BUSINESS PAGE: E-1 EDITION: METRO
SOURCE: SANDRA BROWN KELLY
DATELINE: LENGTH: Medium
MALL OCCUPANCY UP SLIGHTLY
In one of retailers' toughest years in memory, small shops and big chains alike have been in flux. But the net result on Roanoke Valley shopping centers and malls in 1991 was a net gain in occupancy of about 1 percentage point."We held on. That's what we did," said commercial real estate analyst Millie Moore. "We literally held on."
The Roanoke Valley's retail malls and centers have an average vacancy of 15 percent, according to Moore's third annual occupancy survey.
The rate is in line with the national 12.43 percent vacancy rate for strip centers reported by New America Network, a national data center for the real estate industry in Hightstown, N.J.
Moore, who Jan. 1 joined Boone & Co. to establish its commercial division, found:
In the 20 largest centers and malls, the average occupancy rate is 86 percent, up from 85 percent in 1990. The data is based on 4.2 million square feet, surveying centers and malls with at least 50,000 square feet.
Centers north of the Roanoke River are averaging 82 percent occupied, up from 81 percent a year ago.
Centers on the south side of town are 91 percent occupied on average, up from 89 percent in 1990.
There were no major changes at the area's two largest malls, Valley View and Tanglewood, although at both malls small-space tenants moved in and out.
Moore said Roanoke's retail real estate market has benefited from the good condition of its centers, many of which were built in the 1980s or renovated in that period.
The area's stable picture doesn't mean it hasn't been tough for centers, though, she said. Lenders who hold mortgages and developers are having to compromise more in lease negotiations.
The most noticeable changes in tenants came at three strip centers, Tanglewood Square, Hunting Hills Plaza and Towne Square.
Tanglewood Square, which is across Ogden Road from Tanglewood Mall, gained Old Country Buffet and had an existing tenant, Salem Creek, expand.
Hunting Hills Plaza and Towne Square, both climbing out of bankruptcies of their developers, attracted several small tenants.
Faison Associates of Charlotte, N.C., bought Hunting Hills from NCNB Corp., now NationsBank, which foreclosed on previous owners. Faison reported having a contract with Taco Bell to build a fast-food outlet at the center.
The fast-food restaurant will go on a site in front of Wal-Mart and is expected to open in mid-June.
Hunting Hills' vacancy rate is about 22 percent but leasing agent Bill Moseley said he has prospective tenants for almost all of the vacant space.
Towne Square, in addition to several small tenants, brought in Cloth World, a fabric chain. Towne Square is held by WM Equity, a subsidiary of Dominion Bank, and marketed by S.L. Nusbaum Realty Co. of Norfolk.
Crossroads Mall, the valley's oldest center, built in 1960, also changed hands last year. It was bought by George D. Zamais of Johnstown, Pa.
Moore said that purchase was especially encouraging because Zamais is one of the country's largest retail center developers.
Zamais, Faison and Leo Eisenberg & Co. Inc. of St. Louis, which owns Lakeside Plaza in Salem, are among the top 50 development companies, according to National Mall Monitor, a trade publication.
A shopping center that has made no progress in a year, but is probably in the most precarious position of any, is The Plaza of Roanoke-Salem.
The 243,000-square-foot center was built in 1962 and renovated in recent years, but has been limping along with high vacancy rates.
The Plaza, which is on Melrose Avenue in Northwest Roanoke and competing with nearby and newer Lakeside Plaza in Salem, is owned by Walt Robbins of Alexandria.
Robbins said a year ago that consultants advised him the center is no longer a viable retail location and that its future is as an office and warehouse complex.
The Plaza could lose its major tenant, a Winn-Dixie grocery store. That chain has been culling some of its older properties and Winn-Dixie officials have told The Plaza owner that they're leaving at the end of March. That decision is to be made final by Tuesday, Winn-Dixie officials said.