The retail market in Greater Rochester has been active for the first three quarters of 2012, and we anticipate steady demand into 2013. The most active retailers in the market have been national restaurant chains, dollar stores, retail bank branches, medical (urgent care) and gas stations. Overall market vacancy is currently 7.47 percent with the southeast market at 4.77 percent, and the northwest market at 5.06 percent, showing the tightest vacancy levels.
The southeast market includes both the 1.3 million-square-foot Eastview Mall corridor in Victor and the Monroe Avenue corridor in Pittsford. The Monroe Avenue corridor is centered at Pittsford Plaza and Wegmans’ flagship grocery store. The southeast market boasts the highest household income demographics in the region, which has attracted retailers like Trader Joe’s, which is opening in Pittsford Plaza in October; The North Face, currently under construction across from Eastview Mall; and Von Maur, which is currently under construction and replacing The Bon Ton at Eastview Mall. Benderson Development is completing construction of the small shop space at Victor Crossing, a power center anchored by a Walmart Supercenter and Kohl’s on Route 96 just south of Eastview Mall. New tenants include HomeGoods, PetSmart, Dollar Tree, and Famous Footwear. We project high levels of demand and continued low vacancy in this market for the remainder of 2012.
The northwest market consists of the Town of Greece and includes The Mall at Greece Ridge Center. Currently 1.4 million square feet, the region’s largest mall is located on West Ridge Road (Route 104). Wilmorite, the mall’s owner, is proposing a major redevelopment of the Bon Ton wing at the mall, similar to the redevelopment completed at Eastview Mall. The proposed plan includes several new restaurants and a 20,000-square-foot outdoor streetscape and courtyard. Other recent activity in the market includes the redevelopment of a former car dealership into Hess Gas Station, Chipotle Mexican Grill, and Longhorn Steakhouse on West Ridge Road at Interstate 390; the construction of a new retail building for Men’s Wearhouse across from the mall; and the redevelopment of Northgate Plaza by the Widewaters Group.
The south central market is the largest of the region’s retail markets and includes the towns of Henrietta and Brighton and the 1.1 million-square-foot Marketplace Mall. Current vacancy in the south central market is 9.6 percent. This market is centrally located to the region and easily accessible to the large daytime population of office, industrial, and medical businesses as well as several area colleges. New retailers in this market include Mighty Taco, DQ Grill and Chill (both of which have opened their first Rochester locations in 2012) and LA Fitness (currently under construction on Marketplace Drive). A 126-room Hampton Inn is currently under construction on Clay Road, just south of Jefferson Road. CarMax has purchased a former car dealership on West Henrietta Road (Route 15) for its first Upstate New York location.
Grocery stores have been very active in the Rochester region. Wegmans is currently redeveloping its location on East Avenue in the city of Rochester. The project will expand an existing, older store. Tops Markets continues to evaluate all of its locations. The company has announced that the lease at Elmridge Plaza (Greece) will not be renewed. The Henrietta location, currently in Henrietta Plaza on Jefferson Road, will be relocated less than one-quarter mile to the east to Frontier Commons. Tops Markets is also adding fueling stations to several existing stores around the region.
The Rochester retail market is a resilient market characterized by stable occupancy. We expect to continue seeing retailers expand into the market and benefit from the stable economy and dense population and demographics.
— Christopher Giunta is director of the Retail Council with Pyramid Brokerage Company.