TEXAS SNAPSHOT, NOVEMBER 2008

Texarkana, Texas Retail Market

Reynolds

More and more consumers are enjoying the choices offered in Texarkana, from retail and healthcare to education and entertainment. Texarkana has strategic geography, located halfway between Dallas and Little Rock, Arkansas, and its trade area encompasses four states and 18 counties. In addition, Texarkana has been ranked by Forbes as the second fastest growing metroplex in the United States.

Overall vacancy rates in the Texarkana area have consistently been very low — frequently in the single digits — and this is especially the case for the retail market. This is primarily because the market has never been overbuilt and demand for space has almost always far exceeded the supply. The Interstate 30 and Highway 59 (Future I-69) corridors provide nearly 500,000 consumers with easy access to the market, thereby providing retailers with easy access to those consumers.

Thankfully, developers in every sector are beginning to realize that Texarkana is largely under-utilized in terms of developed space. Even with the monumental increase in developed space over the last several years, there has not been a significant increase in vacancy rates. There is still a great amount of planned development on the horizon and there is an even greater amount of raw land that provides great access attributes, established or nearly mature infrastructure, and overall perfect positioning.

The majority of new development is taking place at the interchange of I-30 and I-69/Highway 59, particularly in the Northwest quadrant. This has long been a dominant retail cluster, and TxDOT is redeveloping interchanges, overpasses and one-way service roads to improve ingress/egress in this area.

Existing retail developments that continue to perform well in Texarkana include Richmond Ranch and Texarkana Pavillion. The first is anchored by Target, Kohl’s and The Home Depot, as well as smaller tenants such as Starbucks Coffee and Chick-fil-A. Richmond Ranch is located on the north side of I-30, directly west of Richmond Road.

Texarkana Pavillion includes Best Buy, Staples, Bed Bath & Beyond, Old Navy and numerous other retailers. The development also features a Cinemark and restaurants such as Ruby Tuesday and On the Border. This development is located on the north side of I-30, directly west of and abutting Richmond Ranch. Together, Richmond Ranch and Texarkana Pavillion comprise roughly 1 million square feet of space.

These developments have been very important to Texarkana’s development by providing residents within the trade area options that were unheard of only a short time ago. The Texarkana Pavillion and Richmond Ranch developments’ most important achievement has been to prove beyond any doubt that this area indeed is ready for upscale and large-scale developments. They truly have paved the way for what will be Texarkana’s greatest development in terms of scale, scope and foresight: The Shoppes at West Park.

MBC Holdings of Jonesboro, Arkansas, is proposing The Shoppes at West Park, a 920,000-square-foot, open-air mall to be developed on 93 acres at North Waggoner Creek Crossing at the University Avenue interchange. Approximately 75,000 square feet of the project, which lies at the heart of Texarkana’s most rapidly expanding growth center, will be restaurant space. The Shoppes at West Park will effectively double the retail capacity in North Texarkana.

Near The Shoppes at West Park, Reynolds Development, Inc. is developing Waggoner Creek Crossing, a more than 500-acre, master-planned, mixed-use development. The project is located both to the north and south of I-30 at the new University Avenue overpass. The majority of the infrastructure for this development is already in place, and TxDOT has been working extensively in this area for quite some time to improve access with the addition of the University Drive overpass, Pavillion Parkway overpass, and improved I-30 access via Highway 59 (Future I-69). Waggoneer Creek Crossing will feature office/medical, retail and hotel space, with its retail tenants primarily consisting of big boxes. This development will infuse more upscale shopping choices for local consumers, pushing the Texarkana market even closer to being on par with Little Rock and Dallas.

Over the next year, Texarkana should maintain its upward progression in scale and scope, despite the economic difficulties that the United States is experiencing. At a minimum, Texarkana’s retail market will outperform both the state and national averages, in terms of growth and sustainability.

— Richard Reynolds is president of Reynolds Realty Management in Texarkana, Texas.

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