Northeast Ohio Regional Retail Analysis
Executive Summary
Greater Cleveland Retail Market Characteristics
Due to a combination of factors unique to the Greater Cleveland area including its size, geographic location, and age, the Northeast Ohio retail market is characterized by the following:
Oversaturation
Several sub-areas of the regional market area contain an excess of retail floor space in relation
to the population served. The 79 million square feet of space devoted to convenience and shopping
goods and services in the region exceeds the demand by more than six million square feet.
Although this surplus is not exclusively comprised of "prime space", it nevertheless reflects an
oversaturated market. In addition, continual overbuilding results in lower rents and encourages
marginal uses in established districts.
Experience with Retail Trends Begun Elsewhere
The retail marketplace is in constant flux. Over time, the successes and failures of the various
practices are able to be observed by the retail industry as well as local government. While many
of these trends are eventually manifested in the Greater Cleveland marketplace, industry members
may have worked out some of the initial "kinks". Local government officials have had the
opportunity to anticipate the new trends and their impacts.
For example, the "big box" (i.e., Wal-Mart, Target, Super K) retail trend began elsewhere and ran through a life cycle in some of the early store locations, some of which are now defunct. While none of the big box locations in Greater Cleveland have yet been vacated, local government officials are now aware that closure is likely and can plan proactively.
 |
|
|
Effectiveness of Freeway Network
The freeway network serving Northeast Ohio is relatively efficient compared to other metropolitan
areas. This is due in part to the fact that the Greater Cleveland region's population has been
stable and the freeway system was originally designed for a much larger population level. This
allows for tolerable travel times across the study area. Consumers can visit a variety of
shopping locations without spending inordinate amounts of time in their vehicles.
Map 5 illustrates travel time contours for the eight largest shopping centers in the NOACA five county region. The shopping centers include: Midway Mall, Great Northern Mall, Westgate Mall, Southpark Center, Parmatown Mall, Randall Park Mall, Beachwood Place, and Great Lakes Mall. Shaded areas indicate the accessibility of the eight shopping centers within thirty minutes, depending upon the traveler’s point of origin. For example, all of the city of Avon Lake is shaded blue, meaning that a consumer beginning from any portion of Avon Lake could reach three of the eight shopping centers in thirty minutes travel time (Midway Mall, Great Northern Mall, and Westgate Mall). As the map indicates, the majority of the five-county region, covering the vast majority of the population, is accessible within 30 minutes driving time. This illustrates the efficiency of the freeway network of the region.
Increase in Number of Households
Although the region’s population is declining, the number of households continues to increase.
For example, while Cuyahoga County lost almost 20% of its population between 1970 and 1998, it
showed a 2% gain in households. As a result, there has been a continuing demand for both
convenience and shopping goods in the region.
 |
|
|
Pedestrian-Friendly Amenities
In terms of the form of the retail environment, consumers often indicate that they prefer
pedestrian-friendly environments. This means they like to be able to park close to stores and
walk from one store to another. The retail in many communities in Greater Cleveland exhibits this
type of layout. The central city has storefront retail clusters and urban malls which consumers
can visit and experience on foot. Suburban downtowns, particularly those in older suburbs, have
established retail shopping districts. These districts comprise traditional retail layouts in
which retail uses are located close to the street, one next to the other, and are served by
shared and/or on-street parking. Finally, there are exurban villages, both established and new,
that have designs and layouts traditional in nature. These forms of retail add to community
character due to their attractive and unique aesthetic qualities.
Low Household Income Levels
Much of the population of Northeast Ohio is employed in the service sector, which does not
generally generate high household incomes. In comparing Greater Cleveland to other
comparably-sized cities, Cleveland ranks the lowest in household income. For example, while
Cleveland's median household income in 1989 (in 1998 dollars) was $23,427, Atlanta's was
$29,281 and Baltimore's was $31,608. Upscale retail opportunities are therefore largely confined
to high income areas within the region. Consequently, much of the remaining retail is focused
on value discounting, which does not generate as high a level of sales as upscale retail nor
does this type of retailing include aesthetically-desirable construction.
Decreasing Population Base
Many of the communities in Greater Cleveland are losing population. Therefore, as retail
development continues to occur, the population base is less able to support every retailer.
Vacancies in retail space result and may remain so for indefinite periods of time. These
vacancies occur in both older areas in the small retail spaces as well as in areas where
recently constructed retail has gone out of business due to market cannibalization. In
addition, since the percentage of Greater Cleveland area residents over 60 years of age
continues to climb (21% in Cuyahoga County), it is likely that fewer purchases of shopping
goods will result, as more money is spent on travel, medicines, and leisure activities.
Urban Core Opportunities
Much of the urban portions of Northeast Ohio is developed. Retailers seeking sites for new
locations prefer developing "greenfield" land rather than in the urban core and surrounding
communities where redevelopment of land might be necessary. Consumers living in already
developed areas are not afforded as much opportunity for retail variety. The population density
of the central city and inner ring suburbs provides numerous opportunities for national retailers
with respect to new store locations.
 |
|
|
Outdated Zoning Practices
There is still a large amount of vacant retail zoned land in the region. While this availability
of land has given retailers much choice in the location of new retail locations, it has also
resulted in sprawling retail development. Much of the land zoned for retail is located along
extensive stretches of arterials, resulting in traffic congestion, visual clutter, and
environments unfriendly to pedestrians. Many of the problems endemic to strip development
along Cuyahoga County arterials could be recreated in the outlying counties since retail
zoning patterns are being replicated in those areas. In addition, the preference for
single-purpose retail zoning precludes the use of mixed use development in many areas.
| << Previous | Executive Summary | Next >> |
