The News Herald (Willoughby, OH)
Shopping centers faring well in challenging economy
Amid a rapidly changing retail landscape, area shopping plazas appear to be holding their own overall.
So say community leaders who are keeping an eye on the situation.
“The small to mid-size plazas are doing well,” said Painesville Township Administrator Mike Manary. “Occupancy is full or above 90 percent at all of the ones in the township except for one small one that has four units. That one has a new owner, who is working on full occupancy.
“The exception to the rule is Painesville Commons, aka the Painesville Shopping Center. This one has a 45 percent occupancy rate.”
One factor affecting occupancy in some areas is the ongoing chain closures in the face of increased online shopping.
“Over the course of the last 12 months, the vacancy rate has doubled as the result of the national closures of such retailers as Gordmans, Shoe Carnival and hhgregg, among others,” Mentor Economic & Community Development Director Ronald M. Traub said. “These were not indicative of any weakness in the Mentor market.”
The strength of these centers is that they can offer a shopper a “one-stop” opportunity to purchase goods and services, they are wellmaintained and relatively crime-free, Traub said. “The challenge is, however, with the decline in ‘bricks and mortar’ stores, who is out there and interested in coming to the market?” he said. “The neighborhood/ community center owners are continuing to reinvest in their centers and aggressively market to prospective tenants.”
Looks matter
Neighborhood/community centers are defined as being 30,000 to 200,000 square feet and have at least one anchor store, typically a grocer, home improvement or drugstore, Traub said.
Mentor has 13 such buildings totaling an estimated 1.3 million square feet. The vacancy rate at the end of third quarter this year was 10.9 percent, down slightly from the second quarter, he said.
A number of plaza owners are investing in updates to aging centers, including several this year alone in Mentor. Facade improvements were made to Creekside Commons, the Primozz plaza with the addition of anchor tenant Great Lakes Gastroenterology, Century Plaza at 7617 Mentor Ave., including T-Mobile, and the Barb & Patty’s Butcher Palace at 9460 Mentor Ave.
Age is among the biggest obstacles facing such structures, Manary said.
“Many are more than 30 years old,” he said. “The owners have to invest in the outside appearance of their buildings to keep them relevant.”
Earlier this year, Painesville Township trustees passed a Commercial Architectural Design Standard resolution requiring a Western Reserve architectural style when building owners make improvements in the commercial corridor.
“That will make the township more consistent and attractive,” Manary said.
Another challenging aspect of property maintenance relates to keeping shopping centers clean and tidy, said Painesville Economic Development Director Cathy Bieterman.
“With multiple businesses within each plaza, oftentimes debris outside the locations can be overlooked,” she said.
Mixing it up
While tenants vary from plaza to plaza, shopping centers generally host a variety of uses.
“Some of our plazas are almost entirely national chains, while others are a mix of local and regional stores,” Chardon Planning & Zoning Administrator Steve Yaney said.”
In the city of Painesville, shopping centers attract more convenience-oriented businesses and independent franchise owners, Bieterman said.
“Our stand-alone retail stores attract more unique mom-and-pop shops,” she said.
The blend of businesses is a strength of most centers in Painesville Township, Manary said.
“In the small and midsize plazas, the owners have been flexible in working with independent businesses,” he said. “They have been creative in accepting nontraditional small businesses.”
Bieterman said a couple of opportunities have opened up on Main Street for coveted shops like antique stores, clothing boutiques, specialty boutiques, bookstores, a cupcake/chocolatier/popcorn store, ice cream/frozen yogurt, a gift shop and an evening-based restaurant.
Location, location, location
While Painesville’s retail centers are relatively small compared with those in some neighboring communities, the businesses that do best tend to be in highprofile plazas, such as those on Main Street. Those situated near neighborhoods benefit from foot traffic.
Chardon’s location at the crossroads of Geauga and Lake counties appeals to national as well as local retailers, Yaney said.
Painesville Township’s main plazas are on the heavily traveled Route 20, and bordering Mentor is a bonus.
“(Mentor) is the sixthlargest retail location in Ohio,” Manary said.
Public opinion
Some area shoppers responded to a News-Herald poll about their go-to plazas.
The big draws are mainly national chains.
“I love the plazas all up and down (Route 20), all the way down to Eastlake,” said Painesville resident Jackie Szücs. “Love Target, Kohl’s, Homegoods, etc. all down the line (at Creekside Commons). Best plaza to me.”
Responders indicated that convenience and outdoor lifestyle centers are attractions.
“Legacy Village is my favorite,” said Joanne Cortnik of Concord Township. “I also prefer heading to the Target plaza or up to Chardon, so whatever is needed is all in one spot — accomplished in one trip within a mile or so.”