The story below is from our September/October 2020 issue. For more stories like it, Subscribe Today. Thank you!
Roanoke has long coveted a return to its retail base. It looks like the warm weather opening of Mast General Store could be a significant contributor to that goal.
It is a question that is being asked with increasing frequency these days: Is Roanoke at the front end of a retail renaissance, despite COVID-19?
Evidence is scattered throughout the Roanoke Valley, but is most evident with the coming of Mast General Store in downtown Roanoke June 17, where the regional “family of stores” occupies the first floor of the long-vacant Heironimus building.
“We’ve seen such positive change in Roanoke [retail] that it has made my children want to move back here,” says Melissa Palmer, one of the four co-owners of candy and greeting card retailer chocolatepaper on Roanoke City Market.
To replicate the current climate downtown, “You’d have to go back to the 1960s and before, when there were no malls or outlying strip centers; back to say, the Heironimus days,” says John Garland, a former Roanoke City Councilman and a downtown renovation specialist. Garland grew up in Roanoke and is familiar with retail as a central figure downtown.
“What we thought we would get in downtown, as an offshoot of the residential development [which he helped spearhead], was retail, and it never came. Well, now it is [here]. The opening is a downtown Roanoke milestone and it too, will be transformative. The next logical step in the revitalization of downtown is retail.”
“There are 1,500 people working downtown and 2,200-2,500 residents,” points out economic development specialist Lisa Soltis, who grew up in a thriving retail environment in downtown Roanoke. “Tourism is crazy up; buses bring tourists downtown. I wish we could get back to where we were in the 1960s. Downtown was high-end. Jackie Kennedy would have shopped there.”
Sheri Moretz, a marketing specialist for Mast General Store, says, “We chose Roanoke for a number of reasons. … The Roanoke market has the basic components that we look for when considering a new community: it is investing in its downtown and the rebirth is starting to happen; it is a vibrant community with a healthy mix of locals and visitors; there is a lot for both locals and visitors to enjoy in the downtown and surrounding area. The city/county/region is promoting it and attracting new residents and visitors; the economy is varied with medical, tourism, education, and even some manufacturing. Some of our decision has to do with the actual building.”
The pandemic has had an effect, says Moretz. “Roanoke, like Boone is a little insulated. It might be a while before we feel the full effects of [the pandemic]. All this stuff happening is going to change retail across the board. I don’t know how. People will still seek out experiences, but we won’t know how immediately.”
It took 13 years to put together the Mast General Store deal (“… probably not atypical,” says Moretz) and Soltis was there every step of the way—through three city managers. Mast General Store is “a destination retailer,” says Soltis. “It will bring more people into the downtown area.” But there is considerably more to Roanoke retail than that. “Present Thyme is great. Towers is especially active and for a mall of that age (57) to be vibrant is unusual. Town Square has good proximity to the airport and Sam’s is beneficial. Advance Auto did to Crossroads Shopping Mall what Carilion is doing with Tanglewood. Wasena is up and coming. Williamson Road is becoming an international center and the Grandin and Williamson Road areas have business associations, a big benefit.”
Interactions, not just transactions
Says Moretz, “Retail is an everchanging landscape; that is for certain. As much as the younger generations are looking toward the future, they are also pulling forward some of the best of the past. They are looking for experiences, not just things. They are looking for interactions, not just transactions. At Mast Store, those are things that we do every day. We want to interact with our customers and guests, to help them make the best decisions based upon listening and understanding their needs.”
Frank Martin, commercial realtor at Hall Associates, follows retail trends closely. He says, “The changing face of retail has been [led] by Amazon, which has driven out many of the mom and pops. Destination stores [like Mast General Store] are thriving because you can find what you can’t find online.
“The malls are finding nontraditional uses—Carilion, Advance Auto, for example. Fitness centers are locating in strip malls. People love a grocery store anchor at the malls, and I don’t think the online grocery buying is a threat to that. Locally-owned retail, though, is a tough sell. Health care is strong because of easy proximity and parking.”
Martin insists that “Mast Store will be wonderful for downtown because it is a destination. … Office space downtown has energy it hasn’t had in a long time. There seems to be a changing mindset.”
Moretz says, “To be a draw in Roanoke, we will continue to build our brand awareness and will partner with the downtown organization and local and regional tourism organizations to spread the word of all there is to see and do in the area. While we consider ourselves a destination shopping experience, we are also ambassadors of our community and want to help people – locals and visitors – discover the opportunities around them.”
‘They … brought us candy’
Larry Davidson, owner of Davidson’s, an exclusive men’s store downtown and an initial skeptic, is sold on Mast General Store. “I reached out and got a lovely reply,” he says. “They sent buyers in here and brought us candy. They wanted to assess the competition: Orvis, Walkabout, Davidson’s. I think they’re good people. They know what they’re doing. They are the right people for [the Heironimus] space because they understand it.
“My hope and expectation is that they will revitalize Jefferson Street/Church Avenue, generating activity here. [Realtors are] getting the lower buildings ready and Mast Store will create cross traffic for the City Market and Jefferson street.”
It won’t be easy. “There will be growing pains,” says Davidson. “Vehicular parking will be challenging. I think [Mast Store] will be a good neighbor. It will put a lot more feet on the street.”
Garland says the coming of MGS in a word, has been “huge.” Garland owns several properties within blocks of Mast General Store.
“Can we even remember when a major commercial retail franchise has ventured into downtown Roanoke?” he asks. “Not to mention the fact that they are moving into the Heironimus Building … one of the largest downtown buildings and at one of its major intersections. This will expand the thriving market area and add a retail component not previously existing in downtown, since the closing of the major department stores (Heironimus, Miller & Rhodes, Leggett).”
Erasing the invisible line
Garland cites “our own 16 West Marketplace Building [less than a block away] has endured the emptiness of the Heironimus Building since we revitalized this former S&W Cafeteria. [It is now known as The Crafteria.] There has almost been an invisible line at Jefferson Street that many would not cross. They stayed in the more comfortable market area. Now there are and will be great reasons to cross this line and venture to the other portions of our great downtown.
“The same thing will happen when ... the first block of Campbell Avenue SW is renewed, and with retail on the first floor. … Mast Stores’ confidence in the Roanoke Valley and specifically our downtown is a tremendously positive economic indicator that growth and redevelopment of our downtown has reached yet another milestone and has many more years of growth in its future.”
John Nielsen, a senior VP at Thalhimer who worked to put together the MGS deal, is something of an authority on retail. He says, “Through the fourth quarter, we were still seeing a decrease in vacancy rates and the overall [retail] vacancy rate for Roanoke MSA hovered around three percent [through the winter], which is extremely low.” Lynchburg and the New River Valley are “just under five percent [and Virginia is] sitting at five to eight percent.”
Two factors are in Roanoke’s favor, he says. Roanoke “is insulated today and always has been,” so it saw less of a spike in vacancy rates. Additionally, “new construction is very low compared to other markets.”
A demographic shift coming?
There can be important signs, Nielsen says: “One thing I am watching for is that Roanoke as a market will undergo a significant demographic shift over 36-60 months. If you ran a demographic report, Roanoke as a market is an older market. But my belief is that as baby boomers continue to retire from the work force and when you have a market like Roanoke that has very low cost of living and amazing quality of life: let’s face it, it’s beautiful.
“That’s going to allow an opportunity for Gen Z or millennials to come into the market because there will be future job opportunities. In addition to that, for some of the older millennials (born early 1980s), Roanoke is one of those markets—ready put down roots—and a good majority want to come back to their hometown because it’s a great place to rear a family.”
There are key indicators now: the number of restaurants continues to increase, and new grocery stores moving into the area are “another great thing for Roanoke.” Experiential retail (escape rooms, for example) is growing. “For every retail storefront that closes [nationally], three are opening.”
A move to conversion
He sees no move toward sprawl, rather toward “infill development.” It will look like this, he says: “Higher density and it’s going to be a mixed-use, or multi-use project (example: The Bridges, family, office, retail inclusion), which Roanoke County highlights in its 419 Vision plan. [There is the move to] convert old retail projects and put in new uses: Carilion Children’s. for example. That creates on-site daytime employment that will filter over to the retail uses. The next step from infill will be new construction certain areas of parking lot.”
The Heironimus conversion, he says, is the “type of development we should see more of in the future. We have a very low availability of larger tax-credit eligible buildings remaining in downtown. Opportunity zones present potential for greater economic development and there are additional incentives for outside investors.”
Melissa Palmer of chocolatepaper has looked closely at retail for years and sees Mast General Store as having the potential to promote a cohesive retail climate on City Market. Since 2008, she says, there “has been incremental growth in retail, increased tourism and a significant change in the companies downtown, an increase in the number of employees and residents downtown. Demographics is the key. We’re getting more of the pie. A retailer like Mast General Store is another player that can create a bigger pie for all of us. Growth and change are necessary.”
Recent years have seen serious challenges to City Market retail, says Palmer: “We’ve lived through numerous construction and utility upgrades [downtown] and for the middle level businesses, it is painful. But growing pains are necessary. We’ve had to call for support from all the stakeholders. Everyone has a part to play. Downtown Roanoke Inc. has been a critical advocate.”
“Roanoke demonstrates economies of scale with its retail pockets. That means people are mobile.”
The internet can be a threat, but “one of the strengths of small, local business is the ability to form relationships with customers. We create community and that is a game-changer in development.”
The story above is from our September/October 2020 issue. For the full story subscribe today or view our FREE digital edition. Thank you for supporting local journalism!