Metro Toledo retail is showing promise

Published: Tuesday, 1/20/2015 - Updated: 1 minute ago

BY JON CHAVEZ BLADE BUSINESS WRITER

The metro Toledo retail market saw considerable improvement in the second half of 2014, according to a year-end report by local commercial real estate firm the Reichle Klein Group.

The areas retail space vacancy rate dropped to 12.5 percent at years end from 12.9 percent at midyear 2014, the company said. The average lease rate rose to $7.60 per square foot in the second half from $7.43 at midyear.

The market had 25,293 fewer square feet of unused retail space when the year ended than it did July 1.

Finally, there was 301,260 square feet of new retail space under construction at years end, compared with 217,018 at midyear, Reichle Klein said.

I was kind of surprised how well retail has done the last two or three years, said Harlan Reichle, the companys CEO, said. I would say its clearly the best year that weve had since the crash.

Mr. Reichle said it is too soon to say if the retail market is fully recovered. I dont know if Id go so far as to say its all the way back or back to the levels before the crash. That was a pretty precocious pace we were on prior to 2007. But its the best it has been since the crash.

The report, which was prepared by Mr. Reichle, said the Kroger Co. played a huge role in 2014 in lifting the market by constructing its new Kroger Marketplace store in Holland. The 123,637-square-foot store, which is in the Orchard Center shopping strip, opens Thursday.

Reichle Klein said Kroger also boosted the market byacquiring the former Kmart space in Perrysburg to expand its store there into a marketplace store, and by placing under contract the Sisters of Notre Dame property at Secor Road and Monroe Street where a new Kroger may be built.

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Metro Toledo retail is showing promise