Strip mall empty, getting looks

By Lauren Radomski (Contact) | The Daily Journal

Published Saturday, May 3, 2008

The one-building Tamarack Square may look no different from two months ago, but planners with the future Fergus Falls strip mall say interest from potential businesses is up.

“There’s been increased interest in the center for the last six weeks,” said John Olson, the project’s leasing agent out of Century 21 Vista in Fergus Falls.

That interest has come from roughly 14 local businesses and outstate groups, Olson said. Some have not moved beyond an initial inquiry about the project; others are closer to negotiating a lease with the developer.

The first building in the Tamarack Square development was completed in December and is 9,200 square feet with seven bays and potential for a drive-up window. It has remained unoccupied as Olson and developer Brad Nordgaard have sought to fill the space.

Tamarack Square is scheduled to include a second 12,000-square foot building, capable of holding 11 businesses. Yet the priority is filling the first building before constructing the second, Olson said.

The first building’s recent appeal is due in part to the seasonability of investments, said Harold Stanislawski, director of the Fergus Falls Economic Improvement Commission. Spring allows investors to see buildings free of snow, and simply sits better with some people’s investment schedules, he said.

The opening of Arby’s and the plans to re-open Speedway restaurant may also have helped the strip mall’s prospects, Olson said.

“I think those two have had a really positive impact on the area,” he said. Businesses interested in the strip mall take note of traffic along neighboring streets, he said, and new developments like Arby’s and Speedway serve to increase traffic flow.

Data from the Minnesota Department of Transportation suggest the vicinity of Lincoln Avenue and Western Avenue was busy even before Arby’s arrived.

“From the perspective of (2007) traffic counts, that particular location is among the top three traffic counts in town,” Stanislawski said.

It is not unusual for buildings like Tamarack to sit unoccupied while developers recruit businesses, he said. Such “spec buildings” offer developers more flexibility in locking in businesses and are not unlike spec houses.

“Sometimes it’s just easier to get buildings up and let people see what’s there and get an investment,” Stanislawski said