HEARTLAND SNAPSHOT, FEBRUARY 2005

Quad Cities Retail Market

There are pockets of small retail developments throughout the Quad Cities (an area consisting of Davenport and Bettendorf, Iowa; and Rock Island and Moline, Illinois, along with smaller surrounding communities), according to Jim Mowen of Davenport-based Premier Partners. “There appears to be numerous 6,000- to 12,000-square-foot developments planned in both regional and neighborhood locations,” he says.

The majority of retail development is taking place in the East Davenport/ Bettendorf area and the Northwest Davenport area. In addition, residential growth is slowly making its way to the western parts of Davenport. “The growth here has been kick-started by the Wal-Mart development, which opened in early 2004,” he says.

One of the most significant retail developments in the Quad Cities is Dalan Equity’s $23.5 million redevelopment of the Duck Creek Plaza, which continues with the construction of the 63,700-square-foot Schnucks Market and the opening of retailers in the small shop space. The center’s new tenants include Starbucks Coffee, US Cellular, Nextel and local retailers.

“The active developers in the Quad Cities retail market are quite varied,” Mowen says. “There does not tend to be one or two dominant developers, but more small developers working on a project-by-project basis.” Dalan Equity and THF, for example, are two active developers in the region.

New retailers to the Quad Cities in the past year include La-Z-Boy, Schnucks Market and Starbucks Coffee, all of which are set to open locations in 2005.

The vacancy rate for regional retail space in the Quad Cities (excluding the enclosed mall) is 4.2 percent. Neighborhood retail vacancy is 6.5 percent.

“Future growth will likely continue in the Elmore and 53rd Street Corridor in Davenport and the John Deere Corridor in Moline,” Mowen says. “These areas should remain the focal point of development as they offer the proper mix of residential population, traffic, access, anchors, development opportunity and available land.”

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