Cleveland Retail

by admin

What area is your expertise?
• Retail services in Northeast Ohio

What trends do you see presently in retail development in your area?

• The current trend across the board is an increase in environmental awareness. Developers selecting sustainable sites, retailers constructing LEED buildings, and city and county governments working together to minimize the negative impacts on the environment while maximizing existing infrastructure.

What type of retail product is doing well in your area?
• Power centers, grocery anchored shopping centers and convenient strip centers.

What retailers are new to your area?
• Menards, Massage Envy, Five Guys Famous Burgers and Fries and a Cabela’s are expected.

Who are the active retail developers in your area?
• First Interstate Properties, Liberty Development Group, Snider-Cannata and Centro Properties.

Please name one or two significant retail developments in your area. What impact will these projects have on the market?
• The redevelopment of Westgate Mall in Fairview Park is the first redevelopment of an enclosed regional mall in Northeast Ohio into a lifestyle and power center. Centro Properties, in partnership with the Richard E. Jacobs Group, redeveloped the property. The center is anchored by Target, Lowe’s Home Improvement Warehouse and Kohl’s. Additional lifestyle retailers include Ulta, Massage Envy and The Melting Pot.

Where is the majority of development taking place? Why is this area doing well?

• Suburban greenfields off major interstates. Development is occurring further away from the City of Cleveland core due to residential sprawl.

What area do you expect to be the next big retail development market? Why?

• Far west suburbs of Lorain County, Southern Medina County and Stark County. Residential growth in these markets as well as a lack of retail product serving the market.

Please describe the retail leasing activity in your area.
• The retail leasing market has been good. I expect the leasing market to slow over the next 12 months.

What major leases have been closed recently?
• Urban Active Fitness signed two leases in the 40,000 to 50,000-square-foot range at lifestyle centers on both the east and west sides of Cleveland.

Please give a measure of retail vacancy rates and a measure of available sublease space.
• The vacancy rates will be at or near double digits (10 percent) in 2008. This is for the entire Cleveland/Akron/Canton MSA of approximately 78 million square feet of retail and 3 million people.

What types of retailers should look into your market in the coming year? What type of retail is needed?

• Full-line grocery stores to compete with Giant Eagle and Super Wal-Mart.

Would you like to make any additional observations about the retail market in your area?

• I anticipate a significant slowdown of growth for retailers.

Submitted by Keith Hamulak, sales professional with the Cleveland office of CB Richard Ellis.

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