Facelift gets old Walmart site ready for new retailer

The old Walmart site at the corner of Drake Avenue and Memorial Parkway is getting a facelift and a new tenant.

Randy Taylor of the Tom Taylor Agency, which represents the sellers in the deal, said the 50,000-square-foot site is under contract to a new retailer, and the deal should close sometime this month. A construction crew has been tearing out parts of the parking lot and adding what look like landscaping islands, and a building renovation will happen soon, Taylor said.

He declined to give any details about who will be taking over the site, but he said one company will occupy the entire space, saying only "It's something that will be well-received."

For years, Kroger occupied the site. After Walmart moved from an adjacent building to the shuttered Kmart building across the street, Kroger moved to the former Walmart site.

Most recently, the building was a Bedzzz 'n' More warehouse.

Whatever the new store is, its opening is a good sign. Nationally, commercial real estate isn't faring so well. And market analysts don't believe it's going to get better any time soon. Like housing values in many parts of the country, many commercial markets have seen values drop - by as much as 40 percent. The number of delinquent commercial real estate loans held by banks is rising.

A recent Sentiment Survey conducted by the Real Estate Roundtable found that U.S. property executives gave the commercial real estate market a rating of 56 out of 100. A score of 100 would mean that survey respondents believe current conditions are "much better" than a year ago, and will be "much better" 12 months from now.

The effects of continued weakness in the commercial real estate market are far-reaching, said Jeffrey DeBoer, Roundtable president and CEO. Empty buildings mean lower tax collection for local governments, fewer construction projects and more job losses.

While the residential market is bound to get a boost from the extension and expansion of the homebuyer tax credit, many industry experts say we could be in for a long haul before seeing a recovery in the commercial sector, even into 2011.

Contact Gina Hannah at gina.hannah@ htimes.com or 256-532-4531.