South side continues retail, office development growth

by Jan K. Allen

SBJ Contributing Writer

New and relocating companies have joined the lineup at prime south-side locations. Everyone wants to be close to Battlefield Mall, and there is only so much property available, according to Tim Routh, commercial Realtor at Rankin & Company LLC.

The onslaught of new construction is a mix of restaurants, retail businesses and office complexes that have staked their claims at the James River Towne Center and along Independence, Primrose, Republic Road and Kingsley.

"Retail attracts other retail and other businesses follow," Routh said.

The 80-acre tract at the James River Towne Center, owned by former Springfieldian Jerry Jones, is now either occupied or spoken for with the exception of 3 1/2 remaining acres, according to Jud Heflin, director of development for Blue Star Investment, the management company for the center.

Land at the center is leased on a long-term basis and tenants may choose whether to lease or own their buildings. Most of the structures in the complex are built to suit the tenants and leased to them along with the land, Heflin stated.

To make room for the new Home Depot Store under construction at the center, Hooters has moved next to Amarillo Steak House. The new Home Depot Store will occupy a total of 12 acres for the store and parking lot.

In front of Home Depot, plans are in the works for a 10,000-square-foot building to house a Hallmark store and Schlotzsky's Deli, Heflin said.

Then, next to Wendy's, a new Staples Office Supply Store is also in the early stages of construction, he added.

Among the buildings that have recently cropped up on Kingsley, one building, owned by the Wasson Family LP, now houses four businesses, including the Headache Care Center and the Primary Care Center.

According to Jay Wasson, general partner in the leasing company, buildings like the one his family owns are averaging $12 to $15 per square foot on a triple-net lease. While Wasson said he believes there is a mix of leased and owned buildings in the south-side market, his impression is that more businesses are leasing than owning their buildings.

South of Kingsley on McCann, Sam Westman and his partner, David Curry, own the Timberwood Building. The English-style structure now sits alone on the cul-de-sac, but it will soon be joined by another building Westman plans to erect in the near future.

Westman said he believes the mix between owned and leased commercial space is about even, although many would-be owners are stopped by the initial cost of land and construction.

"A lot of people think about owning, but you have to consider the cost, maintenance and responsibility," he said.

Timberwood now leases in the high $12-per-square-foot range, triple-net. Westman expects space in his second building to bring between $13.50 and $14.50 per square foot.

"A year ago land in the area sold for $5 per square foot. It now sells for $6 and above," he said.

Ken Schwab, commercial Realtor with Wilhoit Properties, gave the broad range for commercial leases of $10 to $15 per square foot, triple-net, for south-side properties. Schwab added that most retail space on the south side of town approaches the high end of this range.

Schwab said business owners can benefit from owning their own building in two ways.

They might occupy a portion of the building and use the rest for income property. This allows the owner flexibility because potential expansion space is already built in.

Schwab said he sees condos as a trend that Springfield will see more of as land and construction prices creep up. The business owner who needs less than 2,000 square feet can take advantage of shared space and can own his or her office without taking on the risk of owning the whole property.

Regarding major projects planned and in progress, Schwab noted the Primrose Office Plaza has 40,000 square feet of office space completed and has plans for 24,000 square feet more.

A new Walgreens Drug Store is going in at the corner of Republic Road and Scenic. Just east of that project, a tract of land that was sold in July is scheduled for more commercial development.

Farther east on Republic, between Glenstone and Fremont, the Maplewood Gardens property has been purchased to build a new complex of mixed commercial and office space which will be called London Square, Schwab said.

To date, Springfield has had a limited condo market, according to Galen Pellham, commercial Realtor with CJR Commercial Group, but the concept is growing, he added.

CastleGate is a good example, Pellham said. The visual appeal of the building is something people are willing to buy into. An ordinary building probably wouldn't work for a condo project, he said.

West of National, a Braum's Ice Cream Dairy Store opened for business in mid-July, and at about the same time, The Light House Gallery opened down the street in an 11,000-square-foot owner-occupied building.

Light House Gallery owner Gary Loyd chose the new location reluctantly, when the state forced the sale of his former building on East Sunshine to make way for the new highway. Loyd said he has been pleasantly surprised at customer response to the new location and said he has been able to increase his inventory because of the added space the new building allows.

Beyond the gallery, facing Republic Road, Three-D Properties Inc., owned by Morris and Debbie Dock, has begun work on a seven-building condo complex. Now occupying the property are Beltone Audiology and Hearing Center and Gary Green, Attorney at Law.

Six of the 10,000-square-foot buildings will be multilevel structures with the option for owners to purchase half or all of the buildings they occupy. The seventh building, of the same size, will be all on one level.

The condo concept is a growing thing, according to Morris Dock. With land and development costs increasing, it makes sense to share the expense among several owners, he said.

Also, Just For Feet opened its new store across from Battlefield Mall in late July. The 18,000-square-foot building is one of 153 stores, most of which are owned by the company, according to Mark Griggs, of the marketing department for the franchise that is based in Birmingham, Ala.

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