Retail development in Biloxi/Gulfport, Mississippi, is moving north from the peninsula, following the surge of residential development north of Interstate 10. More projects are being announced and planned for the I-10 corridor to capitalize on the region’s east-west trade area (from Bay St. Louis to Pascagoula) and visitors heading through the state to destinations like Florida and Texas. Despite the national recession, retail sales for the Biloxi/Gulfport/ Pascagoula metropolitan statistical area (MSA) have remained steady at $4.8 billion, with the Biloxi/Gulfport area accounting for 60 percent of total retail sales.

“The majority of retail development is taking place along the I-10 corridor, especially at the Highway 49, Cedar Lake and Interstate 110 interchanges,” says Brynn Joachim, commercial development manager with the Harrison County Development Commission. “Developers and retailers alike have found that an I-10 location allows them to expand their traditional trade areas further east and west, due to the ease of travel and growing numbers of residents living north of I-10.”

Significant developments in the Biloxi/Gulfport area include Crossroads Center and Prime Outlets in Gulfport, Edgewater Mall/Edgewater Village in Biloxi and Lakeview Village in D’Iberville.

Crossroads Center opened in late 1999 as the region’s first power center. The 850,000-square-foot regional mall is located at the busy intersection of I-10 and Highway 49 and brought 15 new national retailers to the market. Belk and Bed Bath & Beyond recently have signed leases at Crossroads Center. Developers Diversified is proceeding with Phase II of the development and outparcel sales/ leases at Crossroads Center.

Prime Outlets, which opened in 1995 with the growth of gaming, has continued to add numerous upscale tenants such as Polo, Coach and Banana Republic to its strong line-up of tenants at the 300,000-square-foot development. Recent leases at Prime Outlets include Nautica and Kasper Suits.

Edgewater Mall, one of the first enclosed malls in the United States, continues to thrive with anchors Dillards, McRae’s, Sears and JC Penney, while adding new specialty retailers. Its sister development, Edgewater Village, continues to attract new restaurant and retail tenants to serve the growing number of residents and visitors.

In D’Iberville, Lakeview Village, the region’s newest development at Interstates 10 and 110, has transformed a bland intersection into a retail powerhouse. The development is anchored by Lowe’s Home Improvement Center and Wal-Mart Supercenter and is flanked by several hotels and specialty retail strip centers. A 16-screen cinema project has been announced and several new national restaurant tenants are anticipated. Encore Enterprises, led by local doctor Bharat Sangani and Patrick Barber, is the developer of the 96-acre Lakeview Village.

“Until recently, D’Iberville has been a sleeper market to many retailers, due its small population,” says Joachim. “However, developers are realizing that D’Iberville’s attraction is not its size, but its location along I-10 as the gateway to Biloxi and its proximity to the bedroom community of Ocean Springs and east-west arteries that yield shoppers from Gulfport to Gautier.”

Peyton Cottrell, a developer from the Houston area, is also making a name for himself with his planned 600,000-square-foot Gold Coast Plaza development in D’Iberville. Scott Delano of Biloxi recently recruited The Home Depot to the growing Cedar Lake interchange in Biloxi and is aggressively working to redevelop the rest of the area, including Cedar Lake Shopping Center.

New retailers to the Biloxi/Gulfport market include Belk, Bed Bath & Beyond, Hobby Lobby, Coach, Barnes & Noble, Circuit City, Old Navy, T.J. Maxx, Academy Sports, PetsMart, Pier 1 Imports, Anna’s Linens, Abercrombie & Fitch, Banana Republic, Nautica, Kasper Suits, Gap, Polo and Tommy Hilfiger.

According to the University of New Orleans (UNO) Real Estate Data Center, overall occupancy rates at the 9.4 million square feet of retail space in the Biloxi/Gulfport/Pascagoula MSA dropped 2.2 percent to an estimated 88 percent in 2002. Class A centers had small gains in occupancy levels, ending the year 95 percent occupied. However, vacancy rates remained high at Class B and C centers due to Kmart closures and slow re-leasing of vacancies in older centers. One bright spot was the location of Belk and Bed Bath & Beyond to Crossroads Center in Gulfport, filling the two vacancies left by the departures of Albertsons and Service Merchandise.

“One area that should be monitored for new development is the Highway 67 corridor,” Joachim notes. “The highway is being widened to four lanes and straightened to direct traffic to Biloxi from congested Highway 49 in Gulfport.” In addition, a new north-south artery from Gulfport is being extended to link with Highway 67, providing further access. Already, a 4,600-acre master planned community called Tradition has been proposed, with a 150-acre commercial corridor straddling the new Highway 67 roadway.

“While commercial development lulled briefly, the first half of 2003 has brought more than $1.1 billion worth of proposed projects, including seven new casino projects and a new manufacturing plant, which will fuel further residential and retail growth,” says Joachim.

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