Editorial Staff
style='font-size:12.0pt;mso-bidi-font-size:10.0pt'>By:2'> Paul Sands, Commercial Real Estate Advisor
Location, location, location.
Ask any marketing professor at any university and you’ll hear that mantra. So,
you pick a prime location on a busy highway or byway, offer a sought after
product or service, advertise in all the right places and viola, you’ve got
customers. The only problem is that the sands of time seep through the
hourglass. Buildings that house the trendiest retail outlets often turn barren.
Dark windows, battered signs and tired old buildings remind us of more abundant
times.
As large retail chain facilities rise from the landscape, small neighborhood strip centers are forgotten and neglected. Major anchors move to more lucrative locations and smaller businesses are forced to close up shop. Such has been the case at many Lee County area shopping centers.
normal'>The Wal-Mart Departure
Cypress Lake Plaza, located on the corner of US 41 and Cypress Lake Drive, seemed to be one of the first to suffer a nearly immediate decline when Wal-Mart moved about a mile south and built a free-standing Super Store. The parking lot that used to teem with cars and pedestrians became empty. Slowly, nearby shops moved or closed and the building sat vacant for nearly four years. The new owners, Lefmark Properties demolished the premises and were able to build Costco. The strip center that housed such stores as Great Harvest Bread Company and Scotty’s Hardware became a huge wholesale club. As Costco emerged, South Fort Myers shoppers witnessed a resurrection of this commercial site.
The shell that formerly housed Wal-Mart looked drab in contrast to the bright new Costco building, so owners refurbished the entire front facade. Now, Home Goods and TJ Maxx are enjoying one of the most visible locations on U.S. 41. The upgrade has encouraged Friendly’s restaurant to purchase the former Bill Knapps restaurant, which was located across the parking lot, and Cypress Lake Plaza is once again becoming a thriving marketplace.
normal'>A New Look -- A Whole New Intersection
Many shopping centers along U.S. 41 and other heavily traveled roadways are undergoing major facelifts. Old buildings that used to be prime property are being renovated and attracting tenants to capacity. Two examples are seen at both corners on College Parkway and U.S. 41. College Center, although anchored by the ultra modern Office Depot, had a rundown facade and owners had difficulty leasing space. The building was not inviting to passersby and the second anchor, Discovery Zone, closed without warning. Again a new facade has turned the tired center into a high end shopping plaza that beckons both tenants and shoppers alike.
Across the street, Publix shopping center experienced a storefront renovation, which has attracted a 4,000-square-foot fitness center catering exclusively to women. The owners of the fitness center chose the space because of its location, as well as the remodeling.
normal'>From Run-down to Upscale
One of the most dramatic overhauls occurred at Bridge Plaza on McGregor Boulevard. The center sat for nearly 10 years and was sorely in need of a facelift. Boat U.S. and Andre’s Bakery were the only tenants with any longevity and recognition. Formerly a fleamarket, the 70,000 square foot center had 40,000 square feet of vacancy. According to owner and leasing agent, Lou Pettingill, the turning point for the center began with an 18,000 square foot fitness center.
Soon a complete makeover transformed the depressing center into a charming shopping village. Today, an upscale restaurant, a fine jeweler, and a traditional Irish pub are bustling with business. In addition, Boat U.S. and Andre’s Bakery are still there and the bakery is expanding to accommodate its expanding business. The parking lot that had a couple of hundred cars per day now hosts 2,000 cars daily.
normal'>Other Changes Projected - San Carlos Plaza
The anticipation of the new 400-unit subdivision planned by Bonita Bay in San Carlos Park and the strategic location between Bonita Springs and South Fort Myers makes San Carlos Plaza the perfect candidate for refurbishing. And as the remodel is completed, owners can attain market or above market rents and higher quality tenants. If history repeats itself, successful businesses are sure to follow.
style='font-size:12.0pt;mso-bidi-font-size:10.0pt'>Paul Sands is an Advisor at Grubb & Ellis|VIP-D’Alessandro, a full service commercial real estate company located in southwest Florida.