This means those empty stores in strip centers should start filling up, slowly. For example, Discovery Village on Dana Drive enjoys rental rates well above the average, due primarily to a very selective tenant mix, which was made possible by a growing economy. The Albertson's Center on Hilltop Drive may actually have a new anchor by year end, which would start a dramatic turn around for that center. But, this is still a tough segment for landlords. Land development in this sector is heating up, which can also put downward price pressure on older centers.
Negotiations are underway on a number of sites throughout the city for various retail developments.
The activity in the commercial office space market is also picking up. A local developer is drawing plans to construct approximately 54,000 sqft in a single freestanding office building. Investment in the office sector is healthy. Although large, single tenant deals are still few and far between, small local companies are steadily filling in the vacancies. Industrial projects from Anderson to Shasta Lake City are seeing shrinking vacancies and rising rents.