WNWS.COM visited with Gary Taylor, president of Gary A. Taylor Investment Co., for a question and answer session about development in Jackson and Madison County for 2018 – with a look back at 2017.
Question: For several, 2017 was an incredible year for development – housing, retail and road work. What would you say attributed to the amount of projects we saw this past year?
Answer: The key drivers for 2017 for our industry were low interest rates, low inflation, stable economy, expansion of retail, hotels, banks, restaurants and banks seeking quality real estate deals.
Question: Do you see the momentum from 2017 continuing in Jackson and Madison County?
Answer: We believe the momentum in 2018 will continue in certain sectors, but other areas will be met with more caution. For example, big and mid box retail stores are struggling due to online sales.
Sears, JCPenny’s and Macy’s will continue to close stores. Target and Kohl’s have very few new stores being constructed this year.
There will be more retail store closings this year than in 2009.
From Thanksgiving to Christmas (2017) total retail sales in the U.S. were approximately $600 billion, and online sales were about $100 billion. The need for big box retail space is shrinking every year.
Question: Can you tell us about future plans for Park Place East and West near the West Tennessee Healthcare Sportsplex.
Answer: There are currently plans for three hotels in Park Place – all of which have informed us they will start construction.
We are having discussions with a sit down restaurant concept, a doctors office and a dental office.
We are currently 98 percent occupied in the Park Place development.
We’ve had discussions with the Sportsplex management about improving the number of teams attending the baseball tournaments.
Due to changes in girls softball and declining numbers of baseball teams, the Sportsplex will have about 40 percent less teams in 2017 than they did in 2013.
We need about a 25 percent increase in the number of teams (in 2018) to generate the economic impact required for a strong sustainable development.
Question: It’s been a few years since plans for developing Smith Farms (north of Oil Well Road) were announced. Is it possible we could see activity in 2018?
Answer: We’re not sure about 2018, but there’s a possibility in the years to come.
We wanted Kroger (West Towne Commons) to build their super-store at Smith Farms several years ago.
After lots of due diligence, Kroger decided to increase the size of its existing store instead of relocating the store.
When that occurred, it started a chain reaction of other retailers and the movie theatre delaying their commitment to build.
Question: Your thoughts on the need and the possibility of another supermarket for north Jackson?
Answer: I think the best strategy for a new grocery store is to wait and see if the Kroger expansion takes the pressure off.
Kroger (West Towne Commons) is currently struggling to handle all the business – lack of stock space – they seem to run out of things quickly but another 50,000-square-foot expansion will almost double their existing store capacity.
The number of new home permits in the area are about one-third per year of what it was 10 years ago.
So, at the current condition, it may be a few more years before you see another competitor comes to the market.
Question: As busy as Vann Drive is, will we see additional development in 2018?
Answer: Yes. Currently Tacos 4 Life is under construction. The Hilton Garden Inn has opened, and we are working on plans for a upscale apartment project and a few other projects we can’t disclose at this time.
(PHOTO: Gary Taylor, president, Gary A. Taylor Investment Company)
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