Branson retail occupancy reaches 95%

The Branson commercial real estate firm conducted a study of Branson properties that met specific criteria: They had to be for retail use only by multiple tenants, with a minimum of 5,000 square feet, and located within the city’s boundaries.

Properties also were categorized in sub-markets for comparison, and data was gathered from multiple sources about occupancy rates, published or recent net rental rates, anchor tenants, common area maintenance charges and the ages of the buildings.

“Results for the overall market analysis demonstrated an extremely strong occupancy and absorption rate in the retail sector,” Huels said in a news release.

Properties included in the study were divided into four sub-market categories:

• Off Highway 76. One sub-market is defined as any qualifying property that doesn’t front Highway 76. Most of the properties in this set are located on Gretna Road, from Business Highway 65 east through Highway 248, south on Highway 165 to the city limits. In this category, there are several newly built properties that are still in the initial lease marketing phase, and they reflect an above average rate of occupancy. The occupancy rate for the overall sub-market category, however, was a strong 94.9 percent.

• Highway 76. Another sub-market covers qualified retail property that fronts Highway 76, except for specialized properties such as outlet malls and Branson Landing, which have their own categories. The occupancy rate for this category was 95.7 percent, but that figure is somewhat skewed by the inclusion of an older property in the total. If data for that property is removed, the occupancy rate is 98.2 percent. Net rental rates for this category range from $13 a square foot per year to $27 a square foot per year. Properties built prior to 1997 generally received rents on the lower end of the spectrum, and properties built after that, with a minimum of 20,000 square feet, received higher amounts.

• Outlet Malls. Properties in this market share a common type of tenant – manufacturers and factory-direct off-price retailers – and use similar marketing approaches. General retail tenants are usually excluded from outlet mall properties. Current occupancy, according to the study, is 92.9 percent, but actual rental rates are not readily available or widely published. According to local and national management firms, lease rates are often negotiated, and they are based on the total number of stores and the total amount of space the tenant leases nationwide through a particular outlet mall landlord. Many tenants in this category lease at least 10,000 square feet in the Branson market and may lease many times that nationwide.

• Branson Landing. Its size – there are now 91 retailers open – and its unique nature put HCR Development’s Branson Landing in a category of its own. Branson Landing currently has an occupancy rate of 96.5 percent, and, although it fits the parameters of the Highway 76 sub-market, it commands higher rental rates than other properties in the area.

Commercial One Brokers plans to formally update its commercial occupancy report annually.