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CHURN FACTOR: Restaurants have a tendency for higher turnover, says Zach Harrell of Scott F. Harrell & Associates. He brokered the latest deal at 2811 S. Campbell Ave., which has had five eateries since the early 2000s.
CHURN FACTOR: Restaurants have a tendency for higher turnover, says Zach Harrell of Scott F. Harrell & Associates. He brokered the latest deal at 2811 S. Campbell Ave., which has had five eateries since the early 2000s.

Are these properties cursed?

Posted online
A well-known Springfield restaurant is making a return to the city after an almost five-year hiatus.

On June 30, 2012, Doe’s Eat Place at 1232 E. Trafficway St. had its last dinner service, said Benjamin Rogers, a regular at the restaurant. He believes the closure was a profitability issue.

But that doesn’t matter now to Rogers and his family, who have scheduled a soft opening the weekend of June 29-30 for Doe’s return to Springfield, this time at 935 N. Glenstone Ave.

It’s not the first time the North Glenstone Avenue building has welcomed patrons with hungry stomachs. The property has housed the likes of Smith’s Restaurant and Las Margaritas.

It’s one Springfield property out of a handful that have experienced notably high turnover. But while tenants have come and gone in these high-turnover locations, others aren’t ready to give up on them.


Restaurant conversions
In south-central Springfield, the end-cap of the highly visible Battlefield Market Place has sat empty the last five months. Gusano’s Chicago Style Pizzeria abruptly closed before New Year’s Day, and it was the third restaurant tenant in the space, following in the wake of Bandana’s BBQ and The Filling Station.

Now, there’s construction work inside, as Chris Galloway makes a run at it with his PaPPo’s Pizzeria concept.

“We think that south Springfield is a perfect location for Pappo’s,” Galloway said of the 900 E. Battlefield Road, Ste. 176, site for his second location in town. “Ever since we opened, day one downtown, people have said, ‘When are you coming to south Springfield?’ It’s been five-plus years.”

For now, Galloway is unfazed by the turnover at the site.

“Demographically, the people there love pizza and love going out to eat and they also like beer,” Galloway said. “A lot of other places have tried to cut corners.”

Galloway suggested the “Chicago-style pizza” phrasing in Gusano’s name might have limited its customers, maybe those seeking something simpler.

The spot in Battlefield Market Place isn’t the only high turnover property. At 2811 S. Campbell Ave., passersby since the early 2000s have seen the nameplate change from Taco Hut to Thai House to Nipa to Tony’s Italian Cafe & Bar and finally to La Mision. The property went into foreclosure in 2015, and the La Mision signage has remained while parking lot weeds have periodically sprung up.

Travelers down South Campbell soon will see the business of Plaza Tire Services, said Zach Harrell, a certified commercial investment member at Scott F. Harrell & Associates. The Cape Girardeau-based tire shop has purchased the building for its plans to add two more Springfield locations.

“I can’t speak to why those specific users didn’t make it,” said Harrell, who brokered the sale to Plaza Tire.

“The good news is that the property is at a great location for Plaza Tire’s use as it is situated near one of the busiest intersections in Springfield and has two street fronts with multiple points of egress.”

Rogers, who purchased the available local franchise rights for Doe’s, is confident with his new business’ location. It was the first he and his team looked at in town.

“As far as access, it’s fantastic. It’s got high traffic volume there and lots of space for parking,” Rogers said.

Rogers also expects Doe’s Eat Place to gain some stability from its neighbors on either side: the newly constructed Gene’s Gallery Inc. and the remodeled Jose Locos.

“They’ve both done a lot of work on their buildings and they have been very successful,” Rogers said.

He places more emphasis on operations than he does on location.

“Everybody is going to be a little worried about having their business be profitable,” Rogers said. “We’re going to have to be able to stay in the front of people’s minds, both physically and on social media. We don’t want it to be something people will forget about.”

Doe’s Eat Place, which pushed back its original May opening due to troubling weather, will feature a full bar and two rooms available for meetings and presentations.

Turnover factors
There are a number of factors that can play into the life span of a tenant at a single property, said commercial agent Harrell.

“The space could be functionally obsolete,” he said. “I think in many cases the previous uses may not be the properties’ best use, such as with the property at 2811 S. Campbell.”

Mitchell Jenkins, a sales and leasing associate at R.B. Murray Co., agreed.

“In addition to location, the functionality of a property greatly affects the turnover,” Jenkins said. “Many businesses will not go into a retail space if the space is too narrow. It can be challenging to display product and oftentimes the signage is limited on these types of spaces.”

Harrell said buildings with high turnover rates can prove challenging for real estate agents to sell.

“If a property has had multiple users in the past several years most buyers will question why that’s the case,” Harrell said. “Plaza Tire agreed there was an opportunity to redevelop the property for a retail use rather than a restaurant.”

While high turnover can create a stigma, can the properties be called cursed? Commercial agents are careful with the term.

“I wouldn’t say that they’re cursed,” said Kirk Heyle, an industry veteran with  Heyle Realtors. “I think they’re definitely effected.”

Heyle said properties with environmental factors like Kerr-McGee Chemical, a polluted site at 2800 W. High St., can sit empty for years due to the costly cleanup that’s required before new tenants can move in.

“The Solid State Circuits at Republic looked like it would never be cleaned up,” Heyle added. “Environmental factors are one of the biggest issues that goes into high turnover rates.

For 41 years I’ve been working on properties that have problems. If they’re not environmental, they’re going to be food-type situations.”

The properties at 935 N. Glenstone, 900 E. Battlefield and 2811 S. Campbell may have struggled simply because they were being used for so long as restaurants.

“In my experience, much of the turnover has been in the restaurant sector where there are very high levels of competition,” Harrell said.

It makes sense, especially downtown, he said, where turnover has always seemed prevalent.

Consider Hurts Donut Co., at 320 Park Central West, or Civil Kitchen, at 107 Park Central Square. The eatery names of Rendezvous, Migulito’s, Boca Mocha and Mr. Bigg’s once took up the space before Hurts moved in.

At 107 Park Central Square, Trolley’s, as well as several other food concepts, tried to make it work before Civil took over.

“Make sure they completely understand the location, demographics and demand for their use,” Harrell said of his advice for those hunting for commercial properties.

But Galloway believes it could be a little simpler.

“I’ve always believed that if you have excellent products and excellent service, you will do very well,” he said.


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