Tina Dettman–Bielefeldt Broker DB Commercial Real Estate

The Green Bay, Wisconsin, retail market has seen a marked increase in strip center development since 2001. “A few years ago, vacancy ratios were light, and developers saw the need for additional retail and office space,” says Tina Dettman-Bielefeldt, a broker with Green Bay-based DB Commercial Real Estate. As a result of this need, at least a dozen projects have been completed or currently are in the construction/planning phase.

Major areas of development include East Green Bay near the new Target store, the Village of Howard, the Town of Bellevue, and the Village of Ashwaubenon.

Ashwaubenon continues to lead the area in retail development with six new restaurant chains moving into the village, including Max & Erma’s, Noodles, IHOP, Texas Roadhouse, Buffalo Wild Wings and Smokey Bones. Bay Park Mall is expanding and new strips malls are being developed on Oneida Street and Lombardi Avenue. The largest strip mall project is Midwest Expansion’s Shoppes at the Village, located south of Bay Park Square Mall. Construction will begin this summer on the 225,000-square-foot project, which will be designed with a varied roofline and partial two-story design. A new Wal-Mart and Menards are under construction south of De Pere off of Highway 41. Ashwaubenon is also forging ahead on plans to develop its waterfront.

“Downtown Green Bay continues to be a focus for city leaders who support redevelopment of that area,” Dettman-Bielefeldt says. For example, the city has arranged the sale of the former Boston Store building to Bay Lake Bank and the current Younker’s store will be purchased by a local developer for a mixed-use project, which will feature retail and office space, condominiums and apartments. An Irish Inn is also planned for downtown. Mixed-use projects are planned for West De Pere, near St. Norbert College, and for downtown Green Bay. The Selmer Company is developing Tundra Lodge, a water park/hotel complex currently under construction near Lambeau Field in Green Bay.

S.J. Boyer Construction and Direct Development continue to be the leaders in downtown Green Bay development with renovations of historic buildings and new construction in the Broadway and Olde Main Street districts. Prestige Realty is developing a $30 million dollar hotel, water park and conference center on the site of the former greyhound racetrack in Kaukauna. The existing building will be renovated and expanded to include a 252-room hotel, 35,000-square-foot indoor water park with a Hawaiian theme and a conference center. Completion is expected in July 2004. C.D. Smith Construction of Fond du Lac is building the first of two new concourses at Austin Straubel Airport. Simon Property Group’s expansion of Bay Park Square Mall with the grand opening of a new Younker’s store and retail shops is planned for late summer/early fall.

With Bay Park Square adding close to 20 new retail tenants, there is a clamor to attract additional national tenants to the market. The Shoppes at the Village is being aggressively marketed to national chains, leaving most of the smaller developments with local and/or regional tenants.

A substantial range in cost per square foot exists. Newer projects in lower traffic locations are leasing between $8.50 per square foot and $9 per square foot, triple net. Mid-market locations are showing a range between $12 per square foot and $14 per square foot, triple net. The Ashwaubenon area continues to be on the high end of the scale with new projects ranging between $12 per square foot and $22 per square foot, triple net.

“There are no hard figures on vacancy rates, but there has been a marked increase in available space,” Dettman-Bielefeldt says. Several new projects have only signed a few tenants as a result of pre-construction commitments being difficult to obtain. “The amount of new construction combined with difficult economic conditions will result in high vacancy ratios for several years,” she says. “It is a tenant’s market, and developers are dealing to fill space.”

Growth areas include Highway 41, west of De Pere; the Ashwaubenon area including Oneida Street and Holmgren Way; east Green Bay/Bellevue; and Howard.

During the past year, a number of big box locations have opened, including Target stores in east and west Green Bay; and Barnes & Noble, Dick’s Sporting Goods, Denis Sport Shop and Game World in Ashwaubenon.

After a rough year in commercial real estate, activity is escalating. More retail commitments are taking place as an increased amount of retailers seek new or second locations. “With the large amount of new development, the Green Bay market should continue to attract new, high quality retailers,” Dettman-Bielefeldt says.

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