HITTING ITS STRIDE:  COMMERCIAL REAL ESTATE

RECOVING AFTER TURNDOWN

News article courtesy of Southeast Missourian Newspaper

Monday, April 11, 2005
Scott Moyers ~ Southeast Missourian

The Cape Girardeau area is putting more commercial space back to good use, after years of seeing industrial buildings stand lifeless, victims of the era of downsizing, recession and increasingly attractive foreign markets.

But that downturn may be edging closer to the end, if the flurry of activity that has gone on in the commercial sector is any indicator. "My old saying is success breeds success," said Tom Kelsey, commercial broker at Lorimont Place Ltd. "Retailers notice Kohl's and Old Navy here, and that seems to spark interest in others."

"We've had some significant deals recently," he said. The most recent deal was the sale of the Supervalu warehouse property in Scott City. Kelsey handled the sale of the 260,000-square-foot former grocery distribution center and said it is one of the largest warehouse buildings in the region. It sat vacant for several years after closing in 2000, taking 160 jobs with it.

The property was purchased by the Buchheit family, which owns home centers in two states. The family is considering using the building for the company's trucking division. "It was a big deal," Kelsey said. "It has so much potential for job growth."

There were other transactions that brought high-dollar properties off the market. Here are some examples:

The 78,000-square-foot warehouse facility is in the Dexter Industrial Park adjacent to the ArvinMeritor plant and will be used by the national manufacturing company of promotional items for shipping and receiving.

After significant remodeling, O'Reilly Auto Parts recently leased the Cape Girardeau property at 396 S. Kingshighway near the corner of Broadway. The building is 12,000 square feet.

Charter Communications recently leased the 9,600-square-foot warehouse and office building at 3140 Nash Road in Scott City. The building was the former Rhodes headquarters. Charter will be using the warehouse for some of its trucks.

There are other success stories. Mitch Robinson, head of the Cape Girardeau Area MAGNET, a business recruitment organization, said there have been innovative uses of buildings, such as the city of Cape Girardeau purchasing the old Jim Wilson building for its public works headquarters.

"There have been some unique properties come up that have had some interesting opportunities for people," he said. "There has just been a lot of activity in the real-estate market in commercial and industrial sectors. It's exciting."

Robinson said that the leasing and selling of these buildings means that more jobs are coming to the area.

Such activity also makes his job easier. "It really does help if people see bulldozers out on property," he said. "It gets their interest up. If it's a good place for them to do business, it may be a good place for me to do business."

smoyers@semissourian.com

335-6611, extension 137