Despite a recession and the struggles of national retail chains, Greater Cincinnati's retail market is in better shape than a year ago.

        The region's overall vacancy rate, a key measure of the retail market, declined to 7.9 percent from 8.7 percent a year ago, according to new figures compiled by Cincinnati brokerage firm NAI Eagle.

Service Merchandise stores will soon be dark and empty. On Thursday, Ruth Krummen of Westwood and Mike DelNegro of Miami Heights left with bargains from the going-out-of-business sale. (Steven M. Herppich photo) | ZOOM |

        Brokers say a slowdown in construction of so-called big-box stores prevented a glut of space from saturating the Cincinnati area. They predict few expansions until the end of the year.

        “By then, we'll get back to something near normal activity,” said David Mengel, senior associate at CB Richard Ellis. “The more successful ones (retailers) are still looking at this market for expansions.”

        Projects that are in the works include Vandercar Holdings' Center of Cincinnati — a redevelopment of the former Milacron site in Oakley. Meijer and Target will anchor the 500,000-square-foot center, along with Sam's Club, which will relocate from a nearby store on Ridge Road.

        Anchor Associates plans a large retail strip center in Dent at Harrison Avenue and Interstate 74. No stores have been announced yet, but an NAI Eagle report lists Lowe's, Meijer and Kohl's as potential tenants.

        “The biggest thing you will see in 2002 is the winner of the battle of West Chester,” said Chris Hodge, a retail expert for Grubb & Ellis West Shell Commercial. “Is it going to be Cousins or Continental?”

        Atlanta-based Cousins Properties and Columbus-based Continental Real Estate plan to build open-air malls in West Chester, but most retail experts agree that only one mall is likely to get built.

        That's because both centers are seeking to attract many of the same retailers; neither developer has announced signed tenants.

        A third open-air mall, ala Rookwood Commons in Norwood, was once planned at West Chester's Voice of America property, at the northeast corner of Cox and Tylersville. But developer Midland Atlantic shifted plans and will instead build a center-anchored grocery store with space for other large retailers.

        As developers continue to build more retail space — a total of 1.5 million square feet was added in 2001 — older locations will suffer.

        Recent fizzle-outs of Service Merchandise and Rite Aid in Greater Cincinnati will leave many neighborhood storefronts dark in coming weeks.

        Brokers say Kmart, which filed for Chapter 11 bankruptcy this week, will vacate some of its older or less profitable Greater Cincinnati stores. Analysts predict up to one-third of the chain's 2,114 stores will close.

        IGA also recently shut down stores in North College Hill, Pleasant Ridge and Kenton County.

        That leaves strip-center owners and community leaders struggling to replace obsolete space in an era when bigger is almost always considered better.

        “In most cases, that segment has been pretty tough to fill,” Mr. Hodge said.

        Mr. Hodge said landlords often resort to splitting older anchor spaces into smaller stores to lure a variety of retailers.

        Some communities have resorted to creative strategies to fill older space snubbed by national retail chains.

        Pleasant Ridge business owners formed a group, Improve Pleasant Ridge, with a goal of filling a vacant IGA store.

        The group's solution: create an urban market modeled after Findlay Market. Plans are to give vendors small spaces where they can sell seafood, wine and beer, desserts and other goods.

        “It's a concept that has worked in other cities,” said Tom Hagerty, president of Pleasant Ridge Community Council.

        College Hill, meanwhile, is grappling with the pending loss of its neighborhood Kroger store. The Cincinnati-based chain will close stores on North Bend Road in College Hill and another store in neighboring Mount Healthy. A larger Kroger store is being built in North College Hill to replace those stores.

        “It's really bad for the neighborhood,” said Jim Williams, president of College Hill Community Council. “We have the oldest community around. The senior citizens in the community will have no place to shop.”

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