Cincinnati Retail Market Report

Beleaguered multi-tenant space drives up vacancy. In March, Cincinnati logged the highest shopping center vacancy rate among major U.S. markets, contributing to nationally-high overall retail vacancy. Headwinds in the sector are, however, largely concentrated in one submarket. At 40 percent in March, the Western Cincinnati Area recorded the highest multi-tenant vacancy rate in the nation. The area — home to roughly one-third of the metro’s multi-tenant space — has faced headwinds as big-name retailers exit in favor of more populated eastern suburban cities, such as Kenwood. Moving forward, challenges in the Western Cincinnati Area will likely persist; yet, developer interest in converting vacant malls to mixed-use space may cause some stock to be removed over the near-term.