Retail trends typically take longer to develop in Cincinnati than in the rest of the country. For example, the development of lifestyle centers and the invasion of Wal-Mart Super Centers has already happened across most the country, but Cincinnati is just starting to see these developments pop up.

While the market is not rapidly growing in terms of population, retailers have the advantage of slow steady growth as well as a significant white-collar population to guide their development. “We don’t experience the highs and lows seen in other markets,” says David Birdsall, vice president of investments for the Midwest with Cincinnati-based Regency Centers. “Shopping center developments tend to happen one or two centers at a time.”

One of the most significant development trends in the market has been the redevelopment of former manufacturing areas that are now considered in-fill and surrounded by attractive demographics. A good example of this trend is the Center of Cincinati, developed by Vandercar Holdings, which is the former Cincinnati Milacron plant in Oakley redeveloped into a power center with Sam’s, Meijer and Target as anchors.

Cincinnati-based Jeffrey R. Anderson Real Estate is currently building Deerfield Towne Center, a 415,000-square-foot lifestyle center, in the booming Mason area. The center will open in 2004. The company will also begin work on the third phase of its Rookwood development this year.

Along Interstate 75 in West Chester, Continental Companies of Columbus has broken ground on The Streets of West Chester, a lifestyle center with several restaurants that are new to the area and a Rave Theaters. “This market longs for something more upscale than the typical big box development already there and [Continental’s] project should be successful,” Birdsall says. However, there is a concern it will negatively impact Tri-County Mall, Cincinnati’s second most powerful retail center. “Now squeezed between Continental’s project and Forest Fair Mall, which was recently purchased by The Mills Company, Tri-County Mall begs to be reinvented,” Birdsall says.

In Northern Kentucky, the largest recent development is Regency Centers’ Shoppes of Ft. Wright, which will contain the first Wal-Mart Super Center to be built inside the Interstate 275 beltway. This development is ideally situated at the I-275 and KY-17 interchange in Ft. Wright, Kentucky. This development will allow Wal-Mart to get a foothold in the much coveted, densely populated and fast growing Northern Kentucky market.

Not to be outdone by its competitors Kroger has swiftly moved to strengthen its presence in its hometown. The company has expanded its store in Hyde Park, a first ring suburb of Cincinnati, to 100,000 square feet. This will be the first Kroger east of the Rocky Mountains to offer an expanded inventory of general merchandise, very similar to their Fred Meyer cousin. In addition, Kroger is also tearing down the former Parisian department store at Beechmont Mall and plans to build a 100,000-square-foot store on the site. This new store will allow them to solidify their foothold in the Anderson Township area submarket.

“The majority of development taking place has been in the northern area of town, as a result of the hyper growth along both the Interstate 71 and the I-75 corridors,” Birdsall says. The continuous construction of new subdivisions, in conjunction with the aggressive recruiting and tax incentives of cities and townships, has resulted in numerous companies relocating to the area. Cintas, LensCrafters, Cincinnati Electric, and Procter & Gamble are a few companies that have opened large office complexes or headquarters along this corridor. In addition, development along the I-75 corridor, which is a 30-minute drive connecting Cincinnati to Dayton, brings these two cities closer and closer.

Numerous developers, based locally or from out of town, have set up shop in Cincinnati. The companies are vying for a limited number of large development opportunities in the area. Continental Companies and Glimcher Realty Trust are two of the players who have large plans for development. Jeffery R. Anderson Real Estate has a long history of successful projects and has solidified its presence in the market.

A market newcomer, Cincinnati-based Vandercar Holdings, redeveloped the former Cincinnati Milacron factory into the Center of Cincinnati. “This development has been a home run and an excellent case study of what a vision can get you,” Birdsall says.

Regency Centers has also continued to be active and maintain its role as the largest owner of shopping centers in the tri-state market by expanding its presence with developments in Ft. Wright and Indian Springs.

Few large new retailers have come to the Cincinnati market, as the balance of the new retailers is mostly in the restaurant industry, including names such as Champps, Bar Louie and Brio.

The submarket or corridor to keep an eye on for the future continues to be the I-71 and I-75 corridors north of the city. There is ongoing residential and office development in this area with opportunities for additional retail development. Northern Kentucky, with the development of the Cincinnati/Northern Kentucky airport, will continue to be a growth market as more and more farms are converted to retail, commercial and residential developments.


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