Region’s retail sector displays strength

While the Christmas shopping season often accounts for a temporary and sometimes substantial increase in sales at many stores, it doesn’t always reflect year-round strength in a given retail market.

Since we’ve mentioned that subject, perhaps it also raises questions about the potency of the retail sector in Lake County. For anyone seeking indicators to assess the health of Lake County’s retail environment, a recent News-Herald story offered some interesting insights.

Overall, it seems that municipal leaders with expertise or a keen interest in economic development believe that retailing in the region is achieving solid results. An array of studies and statistics help to reinforce their opinions.

While vacancies are slightly up from last quarter in Lake County’s retail hub of Mentor, officials note that the occupancy rate is still more than 94 percent.

That is according to the Cleveland 3rd Quarter 2018 Retail Market Report compiled by CoStar Group, a Washington, D.C.-based provider of commercial real estate analytics. The company tracks about 179 million square feet of retail space in eight counties: Ashtabula, Cuyahoga, Geauga, Lake, Lorain, Portage, Medina and Summit.

Mentor Economic Development Director Kevin Malecek said the city “continues to receive inquiries on a daily basis from retailers enthusiastic about entering our market, and continues to be met with positive feedback when we make inquiries to retailers about locating here.”

Looking at the overall region, the third quarter total vacancy rate was 4.5 percent, down 0.3 percent from the second quarter of 2018.

The Lake County market contains an estimated 17.5 million square feet in 1,318 buildings, of which Mentor accounts for about 40 percent. In addition, the Lake County market had a vacancy rate of 4.9 percent, down 0.1 percent from the previous quarter.

About 5.5 percent of the retail space in Mentor is vacant, which is up 1.4 percent. The largest available spaces are 63,287 square feet in the Erie Commons, 56,257 square feet in the Mentor City Shopping Center and 20,000 square feet in the Mentor Plaza.

While these vacancies include the former hhgregg and Babies R Us spaces, it’s encouraging to hear that there is talk of potential new tenants for both. Gordmans continues to be an active vacancy, recently temporarily filled by a seasonal business.

One of Mentor’s neighboring cities, Willoughby has displayed stability in its retail market during the past five years. In fact, Economic Development Director Tom Thielman reports no big-box vacancies.

The largest single vacancy (26,475 square feet) is the former Audi auto dealership at 38845 Mentor Ave. on the Mentor border.

“The building has some limitations because of its age, design and prior use,” Thielman said. “The building ‘as is’ … would take considerable updating to reimage it into modern retail space. We are hopeful, because of the recent redevelopment of the former Nissan dealership into the Process Technology headquarters, that other commercial and manufacturing type entities may be interested in a similar adaptive reuse or transformation of the former Audi site.”

Meanwhile, the city of Eastlake is pleased about Jakprints printing company as it begins moving into the former Walmart in Eastlake.

“With the addition of Jakprints going into the old Walmart, I believe it will help us bring some other businesses to the Vineyards (shopping center),” Eastlake Mayor Dennis Morley said. “They will bring in approximately 300 jobs and there will be a need for restaurants.”

Morley noted that Walmart was empty nearly four years because the retail giant owned the building and wouldn’t sell to another big-box store.

Lack of existing space is another challenge for some communities in their attempts to attract new retailers.

“Nothing will necessarily be a ‘greenfield’ opportunity in Willoughby,” Thielman said. “We are looking at redevelopments which will maximize the highest and best use for opportunities we have, while being very sensitive to the local brand that Willoughby has become.”

For Painesville Township, demographics are an issue.

“Big retailers have predetermined requirements for population, income, age, average daily traffic, etc.,” said township Administrator Michael Manary. “It is a challenge to meet all of those requirements at the same time.”

In our opinion, there are a number of local economic development and elected officials who should be commended for their work in helping to keep the region’s retail sector going strong. Here’s hoping that the commitment, energy and persistence demonstrated by these leaders will continue for many years to come.