Finding some types of retail space in parts of Wilmington's changing downtown is becoming more of a challenge, experts say.

"We really do have and are bolstered by independently owned and operated shops, entrepreneurs, many times starting their first retail venture, but we are seeing a real tightening of our downtown market," said Ed Wolverton, president and CEO of Wilmington Downtown Inc., as he served as a panelist at a recent event to discuss the area's latest and biggest development projects. "We are down to a handful of properties on Front Street, our primary retail corridor, as being available for retail right now."

Wolverton, who was speaking June 28 at the Greater Wilmington Business Journal's Power Breakfast on "The Next Big Things," elaborated on the comment Wednesday.

"While Front Street has pedestrian activity and a cluster of other shops, some spaces that are currently available are too large for independent retailers," Wolverton said in an email. "Some also require significant upfit costs. This is limiting for a segment of potential entrepreneurs."

Commercial brokers who work with downtown properties said they have noticed some changing dynamics.

"I'd say the best retail is along Front Street, and there is a finite amount of space available. When it is available, it gets leased up quickly," said John Hinnant, a commercial real estate broker with Maus Warwick Matthews & Co. "There is not the right kind/size space necessary to recruit the desired uses – therefore uses like Redix and Outdoor Equipped will be one offs – with hopes of a pharmacy or hardware store relegated to Third Street or areas with no foot traffic. The most common user looking downtown is food/beverage service, and landlords always question if the capacity is there to support them right now." 

While independent, smaller businesses might require a certain kind of smaller space, a large national retailer would likely need 4,000 to 8,000 square feet, Hinnant said, and Front Street doesn't have a large number of those kinds of spaces that weren't "already chopped up during previous periods of revitalization." 

Some downtown spaces have converted from office to retail, Wolverton said, using the examples of law offices on Princess Street now occupied by men's clothing and accessory store Bloke and art gallery Art in Bloom. He said while less frequent, some restaurant space also has been converted to retail – the former Smoke restaurant at the Masonic Temple building was reduced to create small shops, and a sushi restaurant became jewelry and crystal store GEMS4U at 10 N. Front St.

The potential sale of Old Wilmington City Market, which has entrances on Front Street and Water Street and is currently used for retail stores, could result in retail space being converted to another use. The property is listed for a price of $2 million on commercial real estate site Loopnet.com.

"The existing use has been part of the charm and character of Wilmington. It's beautiful, and it would be wonderful if the future owner could continue to house retail, but to date, what we are getting [in terms of interest] is investor-buyers that are contemplating other uses, such as tech companies that want funky, unique places to work out of," said Terry Espy, president of commercial development and real estate brokerage firm MoMentum Companies, who is the listing agent for the Old Wilmington City Market property.

While new space is on the way, there are some available spaces of varying size in and around Front Street, including two spaces in the Cotton Exchange, which also has entrances on Front Street and off Water Street. A new store, Tumbler Bay, opened July 1 in 600 square feet, now one of a collection of boutique shops inside the eight restored historic buildings that make up the Cotton Exchange.

"I was not specifically looking downtown until I found the Cotton Exchange. It has a charm about it that we loved," said Tumbler Bay owner Daryl McCuiston, who also has a Tumbler Bay store at Barefoot Landing in Myrtle Beach, South Carolina, and sells monogrammed, personalized, collegiate and souvenir tumblers.

Wolverton said when he's working with retailers who come to WDI for assistance, he stresses the need for them to consider what size store will work best for them.

"While many people may initially want a large space, this comes at higher operating and overhead costs. Small business owners typically have limited resources, and controlling costs are important to long-term sustainability," he said.

Two projects in the works will enhance downtown's inventory, Wolverton said.

"We are going to be adding 25,000 square feet of ground floor retail space as part of the Water Street parking deck redevelopment and another 30,000 [square feet of] ground floor retail space as part of Pier 33 Apartments. Those new totals will expand the inventory off of Front Street," he said.