Struggling on Daniel Island
Mic Smith
The Post and Courier
The Family Circle Cup tennis tournament draws thousands to Daniel Island each year, but business owners say it doesn't help them much.
It's a quiet Thursday afternoon at Daniel Island's busiest shopping center, and in the absence of customers, Kathryn Ives is rearranging the sale racks inside her children's boutique, Doodlebugs.
Slow days like this are common, she says. Her store gets infrequent visits from those who work in nearby offices, parents who are picking up their children from school and the occasional resident out for a stroll.
"There's not anyone just walking around," she said. "You have to create your own foot traffic."
So for four years, that's what she and her business partner, Susan Jackson, have tried to do. They created an e-mail list for loyal customers, and their sales sometimes draw shoppers from relatively distant neighborhoods in Summerville and West Ashley.
Still, Ives doesn't sound happy when she talks about the health of Daniel Island's business district. Neither did two dozen other business owners who attended a city-sponsored business planning session Thursday morning.
Many business owners said they are having trouble convincing customers to drive across a bridge to shop in their stores and eat at their restaurants, leading, they say, an unusually high number of businesses there to fail.
When speaker and marketing executive Nat Davis suggested that the business community target the lucrative East Cooper market, selling residents there on a day-long shopping experience on the island, one restaurant owner responded, "I don't know what is here in terms of selling Daniel Island."
Gary White, a Daniel Island resident and city councilman, helped organize the forum so small-business owners would recognize "that there are a tremendous amount of resources out there," he said.
Several Daniel Island businesses have failed after not having strict business plans, he said. And as the economy slows, he said, he wanted to help existing business owners prepare.
Speakers from the Charleston Metro Chamber of Commerce and the Charleston Convention and Visitor's Bureau addressed how their organizations promote businesses, while a representative from the Small Business Development Council dispensed bits of advice, such as "capitalize on your niche" and "even Coca Cola has to advertise."
Attendees said the session was helpful, but they complained that there's only so much that individual business owners can do to improve their situation.
The forum evolved into a session about what can be done to liven up the island's struggling business district.
White described the current town center as "spotty," with an unusually high rate of empty stores, though he noted that it has attracted a large number of banks and other finance-related firms.
The vacancy rate and ever-changing roster of stores make it tough to lure a steady stream of shoppers, he and others agreed.
The Family Circle Cup tennis tournament, which draws thousands of spectators to the area each spring, actually worsens the business climate, many attendees said.
Event coordinators close some of the main roads, and regular customers often avoid the island, assuming the area is swarming with visitors.
Some attendees said the neighborhood's main commercial building owners, including the island's developer, the Daniel Island Co., worsen the situation.
With commercial building ownership in the hands of just a few real estate companies, they can charge inflated rents, said Erik Brine, president of the Daniel Island Neighborhood Association.
Market statistics from Grubb & Ellis/Barkley Fraser show that office rents averaged $25.38 per square foot, just 10 cents less than space in Mount Pleasant. Downtown rates were higher, while North Charleston and West Ashley office renters paid less.
The prices don't match demand, Brine said.
Matt Sloan, president of the Daniel Island Co., said it's a misconception that his company owns a large amount of commercial space on the island. Most space, though developed by the company, has been sold to small business partnerships, he said. "My company barely owns anything," he said.
For several years the Daniel Island Co. has worked with a Charlotte development firm to try to attract high-end retailers that Sloan said would draw shoppers across the bridge. He declined to name specific retailers the company is targeting.
Sloan said the project is "going better than one might expect, given the economy," but company executives are still waiting for other high-profile retailers to move into the Charleston market.
In the meantime, business owners at the forum said they plan to ask Sloan's company for help.
Some forum attendees suggested creative solutions such as short-term, low-rent leases for startup companies or a profit-sharing agreement with landlords who lease out space.
"What are you going to do for business now?" asked Greg Turner, president of the Daniel Island Business Association and office manager at Island Eye Care.
"Nobody can put in their individual business plans that, in four years, things will be better. We have to deal with the business environment now."
Reach Katy Stech at 937-5549 or kstech@postandcourier.com.
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Comments
This article has 13 comment(s)
Posted by Neponset on August 1, 2008 at 5:16 a.m. (Suggest removal)
Its tough making it in retail in the best of times. Looks like these folks did not do a very good job of assessing the local customer base.
Posted by moonpie on August 1, 2008 at 6:46 a.m. (Suggest removal)
Yeah I bet it is hard to survive over there. Home prices were inflated and so are the commercial rent prices I'm sure. Seemed like a great idea to build a neighborhood within walking distances to eateries, shops, schools and churches? But I'm sure the inflated rentals is a big nut every month! I like going thru there looking at houses and talking to the expert DI realestate sales people and let them try to explain why this $200000 house elsewhere cost $450000 on DI. Any DR Horton home anywhere isn't worth half what they're asking for it. Watch for mold AND dropping prices.
Posted by willx45x on August 1, 2008 at 7:41 a.m. (Suggest removal)
Daniel Island is the most overrated area of Charleston. I can't wait to see what real estate prices look like there once the blood-letting is over. It won't be pretty. Why in the hell would people drive all the way to DI when there is plenty of great shopping in MP and Downtown and a much better atmosphere to do it in. I bet Daniel Island's retail areas will look like ghost-towns before too long. These developers are going to get theirs' sooner rather than later - the gravy train is over boys. Get used to it.
Posted by icbmman on August 1, 2008 at 8:53 a.m. (Suggest removal)
Well, what do you expect when your only connection to the metro area is 1 interstate exit and 1 secondary road (Clements Ferry)? While the city had a good idea in developing Daniel Island, it forgot one of its premises that make an area successful: connectivity. DI needs to be connected more to the metro area, and the best way to do that would be to extend Clements Ferry Road to the southern tip of the island and build a connector bridge to the Neck area. From the southern tip, some streets could be built to connect the mini-downtown area of the island. You want more pedestrian traffic? Open up the infrastructure
Another aspect in retail that these business owners are forgetting is that in order to attract constant foot traffic, you have to have other main attractions or retail anchors nearby. You can't expect little boutique shops to be your only draw, especially when your connectivity is low. The major shopping center that supposedly will built nearby should bring more foot walkers, since the center is planning to have Nordstrom's and Neiman Marcus as anchors.
Posted by algorelost on August 1, 2008 at 8:55 a.m. (Suggest removal)
Why would you open a store on DI, when everyone nows that the best shopping district is downtown. I would rather open on upper king street than DI.
Posted by iceman1978 on August 1, 2008 at 9:42 a.m. (Suggest removal)
Everywhere in retail is hurting for business, it's just that some areas are worse than others. King St has the advantage of being a high traffic area that's easy to get to and in proximity of many hotels. The Citadel & Northwoods draw from the surrounding suburbs.
icbmman, I've heard that too but I didn't know it would be Nordstrom and Neimans. Do they know when this will take place? We need a Nordstrom but I would think King St or the Mount Pleasant Town Centre would be a better location.
will, I've always felt like Daniel Island is over-rated and heavily overpriced. Other than the fact that the only way on and off is by 526, you're much too close to the industrial areas. To me that wouldn't say much about the air quality for the surrounding area. The homes are nice, but from what I've read in recent articles, are poorly constructed. If our home were on DI it would cost probably twice as much, and we live less than 10 minutes from Folly Beach.
Posted by HighDef on August 1, 2008 at 9:43 a.m. (Suggest removal)
i'm guessing these stores struggling are owned/ operated by rich housewives on DI trying to kill some time ? This area will boom, it's so early in it's development stage but they sure might get some more foot traffic if everything wasn't so overpriced on the island...great place though. These developers are class A guys that you want in your backyard, I'm guessing theirs no DR Horton on DI, Is there ?
Posted by icbmman on August 1, 2008 at 10:32 a.m. (Suggest removal)
Iceman, there was some news about it last year, but that's about it. The developers said they were looking to bring in more upscale shops and restaurants (PF Changs, Cheesecake Factory) as well as those 2 anchor stores. Initial plans were given in the P&C article, but there hasn't been any additional news on it. With the economy slowing down a bit, we might have to wait a few more years before the center gets built.
I would prefer to see Citadel Mall go a bit more upscale with a Nordstroms. If they eliminated some of the riff-raff, they could target a higher income demographic. Dave and Busters should go around there as well...it has so much potential.
Posted by iceman1978 on August 1, 2008 at 10:44 a.m. (Suggest removal)
icbmman, That would be great if the Citadel Mall did that. Like you said, get the riff-raff out and it could be done. The surrounding demographics are there to support a store like Nordstrom.
I'd like to see the Citadel Mall become more like the South Park Mall in Charlotte.
Posted by HighDef on August 1, 2008 at 12:25 p.m. (Suggest removal)
Citadel Mall, that is one of the most useless malls i've entered , if it didn't have Target saving their butt they would be shutting it down, clearing the land and building a "downtown" area.. oh yeah that was the planners idea yesterday, right. I disagree with the demographics being good for that area, maybe if 5-26 ever gets extended the Kiawah money could flow into the area but it looks like the HWY deal might take forever b/c of the ass backwards folks fighting the extension.
Posted by charleston_grown on August 1, 2008 at 3:32 p.m. (Suggest removal)
i live on DI right now, and I can assure you, I am far from wealthy. I work 30+hrs a week and am a grad student, so money is hard to come by. However, most of the restaurants and shops that have failed out on DI have had very poor business plans, and really wouldn't have done too well if they were located elsewhere, imo. Not to mention the current economy, etc...
that being said, DI is a great place to live. There are tons of great places to run, bike, place sports, walk your dog, and just hang out. The only downside is you have to drive 8 miles to Mt. Pleasant. Give it time and DI will be one of the best places if not best place to live in the Charleston area.
Posted by HighDef on August 1, 2008 at 6:07 p.m. (Suggest removal)
Charleston grown-not wealthy but smart, property values will do just fine over in DI, i wish we had planned towns like that down here in Mississippi. We have a clean slate down here due to the storm so hopefully we will build like the developers in DI, with a true long term vision
Posted by icbmman on August 4, 2008 at 11:48 a.m. (Suggest removal)
>>Posted by iceman1978 on August 1, 2008 at 10:44 a.m.
...I'd like to see the Citadel Mall become more like the South Park Mall in Charlotte.>>
Absolutely, iceman! South Park is a prime example of what a mall CAN be if planning and development are done correctly and if the correct demographics can be utilized. There's a lot of work to be done, but considering the income market in WA and all the barrier islands, it should be a no-brainer.
HighDef, I do have to disagree with most of your comment. Belk's, Dillards, and JCPenney give Citadel Mall plenty of financial anchorage besides Target. It is pretty sad that a Target is in a mall, but that can change as well. The mall also has outparcels like Di-cks (this word-filtering function on P&C is just dumb!) and PetSmart now.
I will agree with you on I-526, though. Indeed, these dolts need to quit inhibiting this highway extension. Once it is complete, I believe Citadel Mall will make a strong comeback...it has so many things going for it as it is.