Stability and modest improvement are almost never a bad thing — and retail landlords in Myrtle Beach, South Carolina will take it.
The most notable trend in the market was the improving demand, as negative absorption in the second quarter was just -15,000 square feet compared with -352,000 square feet, according to a report from Colliers. The CRE firm said that the market's low vacancy, which improved by 12 basis points to two percent, was a big factor in why absorption stayed negative.
This came "as tenants vacated ahead of renovation intended to position the market’s few underperforming properties. Most notably, Coastal Centre in Conway entered redevelopment at the end of the quarter, following rapid population growth along the SC-501 corridor and adding competition for the planned Conway Coastal Marketplace power center," Colliers said.
Additionally, not much quality vacant retail space remains in Myrtle Beach.
Another important development was construction falling to 173,400 square feet, a big drop off from the 276,600 square feet posted in the 12 months prior.
Also, asking rents increased by nine cents per square foot to $21.98 per square foot.
However, here's where things get a little concerning for retailers. Consumer spending in the market dropped by 0.4 percent, which Colliers attributed to "slowing out-of-market visitation reflected in a softening hospitality market."
But still, Colliers is bullish about Myrtle Beach in the long term and forecasts "strong rent growth."
The top lease in the second quarter involved property 300 S. Kings Hwy, with 14,200 square feet of space snagged by a tenant.
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