Retail vacancies drop in area

Published: Saturday, 7/26/2014 - Updated: 2 minutes ago

BY JON CHAVEZ BLADE BUSINESS WRITER

Vacancies among retail space in metro Toledo fell to 12.9 percent from 13.2 percent over the first six months of 2014, according to a new midyear report by the Reichle Klein Group, a local commercial real estate firm.

The vacancy rate for industrial sites in the area also declined, falling to 7.5 percent from 7.8 percent between January and June.

Reichle Klein said the drop in retail vacancies was significant because it occurred even as two large anchor spaces Giant Eagle supermarkets became vacant when the chain left the Toledo market.

As a result of Giant Eagles departure, the vacancy rate for retail anchor space increased from 9.8 percent to 11.5 percent.

But overall, vacant retail space declined because of higher demand for smaller inline retail space in retail centers. The mid-year vacancy rate for inline retail space was 14.7 percent, down from 15.8 percent at the end of 2013.

Also, according to Reichle Klein, the vacancy situation was helped by the sale of two former Kmart stores one on Reynolds Road in Toledo to At Home stores, formerly Garden Ridge, and the other on Carronade Drive in Perrysburg to Kroger. Together the two stores have 202,347 square feet.

The average lease rate for retail space in the Toledo area fell to $7.43 a square foot from $7.62 at the end of 2013.

Reichle Klein said the rental rate declined because high-value space is primarily filled, leaving mostly less expensive space on the market.

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Retail vacancies drop in area