Fourth Quarter Tallahassee Commercial Real Estate Update

By Brenda Francis

Information contained herein is obtained from sources deemed reliable, however, accuracy is not guaranteed and is subject to errors, omissions and changes prior to print.

FL DEPT OF REVENUE – GENERAL TAX ADMINISTRATION has moved their offices from John Knox Road to the Edgewater Corporate Center (formerly Cedars) at 2639 N Monroe St, Suite 100 Building B If you have been taking your tax payments to John Knox Road, please take them to the new offices. 

267 JOHN KNOX ROAD offices are being converted to EXECUTIVE SUITES.  Available in early 2018, there will be 12 Second Floor Full Service Executive Suites ranging in size from 180 sq. ft. to 240 sq. ft., with 4 Large Corner Offices.  Tenants will share a reception/lobby area, conference room, break room, wireless printer/copier, shared Wi-Fi and after house security access.  Now accepting reservations with a deposit.   If you are looking for a small office and want convenience to I-10, downtown, and all of Tallahassee, THIS is the place!!

STRUCTURE COMMERCIAL REAL ESTATE has relocated its offices to 1705 Metropolitan Boulevard, Tallahassee, FL  32308, on the corner of Lonnbladh Road.

THE EARLY LEARNING COALITION OF THE BIG BEND has found a new home at the Edgewater Corporate Center, Bldg C at 2639 N. Monroe, formerly Cedars Center just north of the Centre of Tallahassee.  Their Grand Opening is scheduled for December 12.

SUPER SUDS’   two Tallahassee car washes are operated by Goodwill Industries and affords 70 job opportunities for the Tallahassee Market.  The two stores are about to undergo a renovation that “will provide better and faster service” for their customers, according to Goodwill’s CEO Fred Shelfer.    http://super-suds.com/

DAVE’S PIZZA GARAGE  in Bull Run is on schedule to open this month in the space previously occupied by Rummy’s Pizza.

In THE ALLIANCE BUILDING, downtown on Monroe between Park and College Avenues, the retail condo previously occupied by Subway Sandwich Shop has been sold to the Florida Institute of Certified Public Accountants and will be their governmental affairs office.

CANTERFIELD OF TALLAHASSEE, Assisted Living Facility, is to be built on E. Tharpe Street, between N. Monroe and Meridian Road  and is underway!  The buildings have been demolished, the land has been cleared and excavation work has commenced.  http://medicaldevcorp.com/canterfield.html

FUEL FITNESS BOOT CAMP   just signed a 3800 square foot lease in LAKE JACKSON TOWN CENTER, 3840 N. Monroe at Fred George Road. Their focus is on weight loss, muscle building and toning.  They are offering on their website a “4 Week Holiday No Gain Challenge for 50% off, just $49”.  This might make a great Christmas gift for someone you know, or even yourself!    http://www.fuelfitnessbootcamp.com/

TRAIN FIGHT WIN has moved from their 729 Gaines Street location to 2325 Apalachee Parkway.  They were on Gaines Street for five years but will be in a “bigger and better” space.   “Whether you want get in the cage for your first MMA bout, or to simply learn how to box, defend yourself, and get in shape, we will help you get you there”.   http://trainfightwin.co/

CANOPY AT WELAUNEE at Fleischmann Road at Centerville Rd/Welaunee Blvd:

The seventy-five acres of Phase One of this 500 acre new mixed-use development are well underway.  The front eleven acres are under contract for medical use.  Behind that, six acres are under contract for an assisted living facility.  The six acre site for a 300 unit apartment complex has closed. Another seven acres next to TMH on Fleischmann is under contract for a commercial use, but that use has not yet been disclosed.  The Senior Center has plans to build a facility in Canopy in the future.  Twenty-five homes are already under contract.  Demsey Mayo Road will eventually be extended through to Centerville Road.  Welaunee Blvd will cross I-10 at Shamrock and an interchange will be constructed at Welaunee Blvd and I-10 in the next few years, hopefully by 2025.

BANNERMAN CROSSING      6668 Thomasville Road

MOM AND DAD’S will not be opening prior to the New Year as we all had hoped.  They are shooting for late January, early February, depending on equipment orders and delivering during the holiday rush.  They are still open on Apalachee Parkway and taking reservations and catering orders.  Don’t go to their website unless you want to be hungry after you watch their video!!   https://www.momanddadstally.com/

OOH LA LA BOUTIQUE has just opened in Bannerman Crossing.  This is a woman’s clothing and accessories shop, designed to appeal to the “student, artist, polished professional, stroller-mom and a grandmother.”   https://oohlalaboutiques.com

CAPITAL PLAZA   1866 Thomasville Road

RED ELEPHANT PIZZA & GRILL closed its doors at 2:00 Sunday, December 3 after eleven years of serving midtown Tallahassee.  There was a time when you had to be there by 11:30 to get a table for lunch without waiting.  They had the best Hawaiian Pizza and Southwest Chicken Salad.   I’m really going to miss them!!  They are still open in the Kerry Forest location in Northhampton, and in Dothan, Lakeland and Panama City.   http://redelephantpizza.com

NUBERRI FROZEN YOGURT  next door to Red Elephant in Capital Plaza also closed recently when their lease expired.  Their Blairstone and Kerry Forest locations are still open.

CENTRE OF TALLAHASSEE    2415 N. Monroe

DOLLAR TREE has relocated from the outbuilding at the Centre of Tallahassee to the main building.  The vacated building, fronting on N. Monroe, will be demolished and a new multi-tenant building will be constructed.  The new building is in the design stages now and will be approximately 12,000 square feet with three restaurant spaces and one retail space.  https://www.dollartree.com/

BODY TRAC HEALTH and FITNESS  is now open and operating as of last month.  According to their website, you can get a free week’s trial.  http://bodytrac.com/locations/florida/tallahassee/central/

GOVERNOR’S MARKETPLACE   1654 Governor’s Square Blvd

FIVE BELOW  will be opening soon in the former Famous Footwear space in Governor’s Marketplace.  “Everything, every day, is just $5 and below”.   Its website states it is one of the fastest growing retailers in the country with more than 575 stores in 32 states. It caters to teens, pre-teens and their parents, and carries an ever-evolving and exciting assortment of cell phone cases and chargers, remote control cars, yoga pants, graphic tees, nail polish, footballs and soccer balls, tons of candy and seasonal must-haves.    https://www.fivebelow.com/

The former SPORTS AUTHORITY space at Governor’s Marketplace will soon have a new tenant.  The landlord expects to make an announcement in the very near future!

MIRACLE PLAZA   1815 Thomasville Road

HOLLYWOOD FEED, a holistic pet food & supplies store will be opening in one of two suites under construction where Tomato Land  was, as an out-parcel in the Whole Foods Center.  The building is expected to be complete in April, at which time Hollywood Feeds will be able to start their buildout.  Hollywood Feeds is located in nine southern states, according to their website, but this appears to be their first Florida location.  Their email address is SO appropriate:  bark@hollywoodfeed.com.   www.hollywoodfeed.com    The adjoining suite is still available at $35 per square foot.

TIMBERLANE SHOPS ON THE SQUARE   1415 Timberlane Road

The owner has hired a PR firm and will be issuing press releases as things develop.  There is a new sign at the entrance stating that the property is going to be redeveloped.  That’s a good sign that things are about to happen!  Southern Seafood renewed their lease last week and will be staying in their current location with a complete redesign.  I have been assured that more news will be coming soon!

VILLAGE COMMONS    1390 Village Square Blvd

TIJUANA FLATS is now open!  It is in the newly constructed out-building facing Thomasville Road, behind Capital City Bank’s free standing building.  Blaze Pizza’s space there is under construction and looks to have a few more weeks of build-out before they will ready to serve pizza.

NATIONAL NEWS

BARNES & NOBLE is starting to shrink its footprint and refocus on book sales.  Their newest stores will be half the size of the older ones.  They blame declining sales on non-book sales such as toys, vinyl records and stationery.  No word yet on any changes for our Tallahassee store.  I, for one, prefer a tangible book verses a Kindle book, but I do listen to a lot of books via Audible while I paint.

CONSUMERS ARE TAKING LONGER TO MAKE BIG TICKET PURCHASES:  According to a survey by Synchrony Financial to study the steps consumers go through to make big ticket purchases (over $500), they have found that “Overall, consumers are taking longer to make big-ticket purchases.  Their purchase journey has gone from 65 days to 81 days in one year.  But, on the plus side, the average spend for big-ticket purchases has gone up to $2,055, a 9% increase over last year.  This could be driven by an increase in consumer confidence and an upbeat assessment of the job market.”

WALMART AND LORD & TAYLOR have announced that Walmart will open a flagship storefront on Walmart’s website, www.Walmart.com in spring 2018. Lord & Taylor is downsizing its floor space in its flagship store on 5th Avenue in Manhattan.  Lord & Taylor has occupied the iconic 676,000 square foot building for over 100 years.   Hudson’s Bay, Lord & Taylor’s parent company, has sold the building for $850 Million to WeWork, a seven year old start up that creates shared office spaces.   WeWork will use part of the building as its headquarters and will lease out the balance as shared work space.

I don’t get to New York often but this is just seems sad to me.

MACY’S:  According to Ben Unglesbee with Retail Drive, Macy’s reportedly explored a buyout this year with a private equity firm and fellow department store retailer Hudson’s Bay.  Talk is that no deal was reached and Hudson’s Bay withdrew its interest. Macy’s is still a profitable retailer despite its struggles. Last year it posted a net income of $611 million in a sector where many lost money.   As of January 2017, the company owned outright 382 of its 829 stores in the U.S.

Maybe we can hold onto our Tallahassee store for a few more years if we just shop there.  We do not want to lose this store!  We do not need another empty box!

NORDSTROM:    It makes sense that Nordstrom should be of interest to Amazon or Walmart as they are both in an acquisition mode.   Nordstrom was almost acquired this year by its founding family and potential private equity partners. With a Nordstrom acquisition, Amazon could “deepen its relationship with its expanding core base”, says Jeff Glueck, CEO of location intelligence company Foursquare.  “Nordstrom attracts similar higher-end customers to Whole Foods.  For Walmart, on the other hand, Nordstrom holds the potential to help the retail giant reach shoppers outside of its usual base.”  Ben Unglesbee, Retail Dive, www.retaildive.com

We don’t have a Nordstrom in Tallahassee but I include this because of the acquisition wars ongoing between Walmart and Amazon.  I think most of us would love to have a Nordstrom or Lord & Taylor here but I don’t think that’s going to happen.  What remains to be seen in a buyout of either store by either giant will be the resulting quality and pricing of the merchandise.

OTHER RETAILERS that look “ripe for acquisition” are Abercrombie & Fitch, Ulta, Kohl’s, Wayfair and Lulemon.   Ben Unglesbee, Retail Dive, www.retaildive.com

MALLS and RETAILERS DISAGREE:  There is probably nothing new in that statement but I found in an online article, which is included in my newsletter, that:  “60% of landlords think customers are shopping less often in stores while only 37% of retailers do”.

TALLAHASSEE, WHAT DO YOU THINK?  Are you buying more on-line than you did a year ago?  Are you still wanting that ‘touchy-feely’ experience and prefer to shop in a store?  Do you use Amazon Prime more than not so you don’t pay shipping?  Are you buying BIG-TICKET items on-line ($500 plus) and how long does it take you to make your purchase?  Do you prefer to read a tangible book or a tablet?  Send me your comments and I’ll post in my next column.  Thanks for reading and have a Very Merry Christmas!

BLUE WATER EXPRESS WASH has purchased the NE corner of Capital Circle NE and Gilliam Lane and has begun excavation for a new facility. They combine self-service and full service all in a 3 minute car wash.  The 0.610 acre site was purchased in November for $1,450,000. http://www.bluewaterexpress.net

KAUFMAN TIRE is building a new location on the old McDonald’s site on Magnolia Drive.