1. Q3 2011 | RETAIL
CINCINNATI, OH
THE KNOWLEDGE REPORT
Retail Market Continues to Move
in the Right Direction
EXECUTIVE SUMMARY
The Greater Cincinnati retail market continued to post positive gains in net absorption, a
trend noted in all three quarters of 2011. The third quarter posted 32,432 square feet of
positive absorption, bringing the year-to-date net absorption total to 586,696 square feet.
The vacancy rate remained at 12.6% which is 180 basis points less than the same period
MARKET INDICATORS last year.
Q3 11 Q4 11*
As occupancy numbers continued to improve, new retail developments came back to life in
VACANCY
many submarkets. Several new retail developments were announced, while existing
NET ABSORPTION
projects continued to move forward. These projects run from downtown Cincinnati to
CONSTRUCTION midtown, with Northern Kentucky and Anderson Township getting their fair share of activity
RENTAL RATE
as well.
*Projected Change to
the following Quarter. The average overall asking rate for retail space remained unchanged from last quarter at
$11.75 per square foot. Owners of retail space have found some comfort in the stability of
the rental market over the past several months.
The Cincinnati Retail Market
OVERALL VACANCY RATE QUARTERLY ABSORPTION
posted 32,432 SF of positive
absorption in the 3rd quarter.
15%
1,500
14%
1,000
(In Thousands)
13%
Square Feet
12%
500
11%
10%
0
3Q 08
1Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
-500
3Q 08
1Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
Net Absorption
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2. THE KNOWLEDGE REPORT | Q3 2011 | RETAIL | CINCINNATI
DEVELOPMENT site that sat vacant for three years. Jeffrey R.
Anderson Real Estate will kick off the first phase of
From 2008 to 2010, construction of large retail
the $125 million development, which will consist
developments halted and retail developers were
of a 123-room Courtyard by Marriott Hotel
sidelined until the economy improved. This lull in
and a 16-screen movie theater that includes a
activity changed in 2011, as new developments
7,000 square foot restaurant and bar with VIP
broke ground, and one project continues to move
balcony seating.
forward along Cincinnati’s central riverfront.
AVG. ASKING RATES (PER SF-FULL SERVICE GROSS)
Oakley Station in Oakley landed the first anchor
Construction at The Banks, a mixed-use
Strip Neighborhood All Property Types tenant at the $120 million mixed-use development
$15 development, remained active for most of the year
planned for the site of the former Milacron factory.
$14 and will continue as another restaurant signed on
Cinemark NexGen, a Plano, Texas company, said it
$13 this quarter. Tin Roof signed a lease for 5,000
will open its first local theater at this site developed
$12 square feet and will join Johnny Rockets, Holy
by Vandercar Holdings. In addition to the 55,000
$11 Grail, Hueys 24/7 Diner, La Crepe Nanour, The
square foot theater, the developer is planning
$10 Wine Loft and Toby Keith’s I Love This Bar & Grill.
350,000 square feet of retail space, 250,000
$9 The developer of the long-anticipated Rookwood
square feet of office space and 300 apartments.
3Q 08
1Q 09
4Q 09
1Q 10
2Q 10
3Q 10
4Q 10
1Q 11
2Q 11
3Q 11
Exchange decided to break ground on the Norwood
UPDATE Recent Transactions
THIRD QUARTER ACTIVITY
PROPERTY TRADE AREA PROPERTY SIZE
Menards Miamisburg Lyons Crossing 200,000
Joann Fabrics Florence Home Depot Center 49,645
Ross Dress for Less Kenton 1950 N. Dixie Highway 30,000
Joseph-Beth Booksellers Kenton Crestview Hills Center 20,000
A Touch of Class Crescent Springs Edgewood Plaza 20,000
Staples Liberty Twp Bridgewater Falls 17,000
David Falk/Boca CBD Former Maisonette 15,000
Planet Fitness Eastgate Eastgate Square 15,000
Treehouse Kids Tri-County Former Arhaus Furniture 14,500
Anytime Fitness Liberty Twp The Commons at Liberty Falls 14,000
Furnish 123 Tri-County Tri-County Commons 12,000
The Gymnastics Center West Cincinnati Marketplace 10,000
Indian Grocery Store Sharonville 11955 Lebanon Road 9,000
Ace Hardware Milford Mariemont Promenade 8,952
Japanese Bistro Central 7800 Montgomery 7,600
Chico’s Mason Deerfield Towne Center 7,500
Rockler Woodworking Tri-County Cassinelli Square 7,200
Rue 21 Colerain Stonecreek Towne Center 6,000
Tire Discounters Newport Newport Pavilion 5,900
Mike Summons Karate Studio Beechmont 7900 Beechmont Avenue 5,439
Tin Roof CBD The Banks 5,000
Flipdaddy’s Northeast 12071 Mason-Montgomery Road 4,928
Woodridge Veterinary Hospital Northeast 3775-3791 Woodridge Blvd. 4,800
Massage Envy West Chester Voice of America 4,379
Five Guys Burgers Western Hills 6211 Glenway Avenue 4,300
Classy & Sassy Ft. Mitchell Expressway Plaza 4,000
Buffalo Wings and Rings Northwest Brentwood Plaza 4,000
Transactions are believed to be accurate but not guaranteed.
P. 2 | COLLIERS INTERNATIONAL

3. THE KNOWLEDGE REPORT | Q3 2011 | RETAIL | CINCINNATI
TOTAL DIRECT SUBLEASE TOTAL VACANCY PRIOR QUARTER NET YTD NET AVERAGE
INVENTORY VACANT SF VACANT SF VACANT SF RATE VACANCY RATE ABSORPTION ABSORPTION ASKING RATE
BOONE COUNTY
Community 208,255 5,590 0 5,590 2.7% 2.0% -1,393 -1,393 $21.00
Convenience / Strip 586,633 121,274 0 121,274 20.7% 20.6% -360 16,288 $12.44
Freestanding 1,088,897 98,515 0 98,515 9.0% 9.0% 0 17,083 $7.44
Neighborhood 1,318,302 80,275 0 80,275 6.1% 6.4% 4,205 25,743 $11.53
Power 514,612 49,645 0 49,645 9.6% 9.6% 0 0 $11.00
Regional 726,575 209,027 0 209,027 28.8% 28.8% 0 7,997 $14.50
TOTAL 4,443,274 564,326 0 564,326 12.7% 12.8% 2,452 65,718 $11.56
CAMPBELL COUNTY
Community 297,095 118,378 0 118,378 39.8% 39.8% 0 0 $14.27
Convenience / Strip 138,525 5,340 0 5,340 3.9% 3.9% 0 0 $23.63
Freestanding 612,202 99,288 0 99,288 16.2% 16.2% 0 22,712 $5.50
Neighborhood 491,000 27,072 0 27,072 5.5% 5.2% -1,430 23,610 $15.37
Power 288,000 0 0 0 0.0% 0.0% 0 3,550
Regional 696,952 11,210 0 11,210 1.6% 1.6% 0 90,691 $12.00
Street Front 75,000 20,463 0 20,463 27.3% 27.3% 0 7,948 $16.00
TOTAL 2,598,774 281,751 0 281,751 10.8% 10.8% -1,430 148,511 $11.68
CBD/MIDTOWN
Community 1,192,233 27,718 0 27,718 2.3% 1.6% -8,976 141,026 $14.38
Convenience / Strip 313,428 52,833 0 52,833 16.9% 17.0% 448 2,686 $16.72
Freestanding 633,389 135,698 0 135,698 21.4% 21.4% 0 -9,198 $6.70
Neighborhood 516,680 32,878 0 32,878 6.4% 3.7% -13,543 15,126 $15.88
Regional 917,155 22,434 0 22,434 2.4% 0.0% -22,434 12,566 $29.50
Street Front 246,382 47,283 0 47,283 19.2% 19.2% 0 23,379 $9.75
TOTAL 3,819,267 318,844 0 318,844 8.3% 7.2% -44,505 185,585 $11.19
EAST
Community 455,182 3,500 0 3,500 0.8% 0.8% 0 0 $13.00
Convenience / Strip 1,239,582 279,312 5,178 284,490 23.0% 22.7% -2,603 33,861 $11.60
Freestanding 2,433,661 53,620 0 53,620 2.2% 2.2% 0 33,400 $6.96
Neighborhood 1,570,426 232,172 0 232,172 14.8% 14.9% 1,105 23,050 $9.44
Regional 833,195 234,550 0 234,550 28.2% 28.4% 1,890 58,266 $12.11
TOTAL 6,532,046 803,154 5,178 808,332 12.4% 12.4% 392 148,577 $10.53
KENTON COUNTY
Community 314,930 5,900 0 5,900 1.9% 1.9% 0 0 $18.00
Convenience / Strip 285,549 25,395 0 25,395 8.9% 12.2% 9,330 24,930 $14.38
Freestanding 407,547 0 0 0 0.0% 0.0% 0 0
Neighborhood 1,189,199 193,660 0 193,660 16.3% 16.9% 7,200 -43,303 $12.78
Regional 500,000 1,000 0 1,000 0.2% 0.2% 0 3,367 $26.50
TOTAL 2,697,225 225,955 0 225,955 8.4% 9.0% 16,530 -15,006 $13.16
NORTH CENTRAL
Community 861,299 105,597 0 105,597 12.3% 19.4% 61,675 67,726 $15.09
Convenience / Strip 1,814,827 324,547 0 324,547 17.9% 18.2% 6,355 -7,100 $11.66
Freestanding 2,747,970 134,907 0 134,907 4.9% 4.7% -4,593 26,130 $9.77
Neighborhood 2,318,323 386,710 68,744 455,454 19.6% 21.3% 38,445 -5,759 $11.04
Power 1,227,298 192,560 0 192,560 15.7% 15.7% 0 -10,000 $5.92
Regional 1,833,449 230,658 25,000 255,658 13.9% 14.7% 13,806 24,159 $19.81
TOTAL 10,803,166 1,374,979 93,744 1,468,723 13.6% 14.7% 115,688 95,156 $12.57
NORTHEAST
Community 644,894 145,007 0 145,007 22.5% 23.6% 7,326 9,579 $14.00
Convenience / Strip 1,953,728 311,357 0 311,357 15.9% 15.8% -3,441 -86,551 $14.34
Freestanding 1,926,922 75,138 0 75,138 3.9% 1.8% -41,400 -75,138 $13.51
Neighborhood 2,474,653 406,729 0 406,729 16.4% 15.8% -16,351 -87,323 $11.09
Power 674,550 0 0 0 0.0% 0.0% 0 0
Regional 1,088,356 65,202 0 65,202 6.0% 5.3% -7,132 34,551 $28.53
Street Front 67,327 11,317 0 11,317 16.8% 14.1% -1,847 1,086 $13.00
TOTAL 8,830,430 1,014,750 0 1,014,750 11.5% 10.8% -62,845 -203,796 $13.78
NORTHWEST
Community 641,537 152,387 0 152,387 23.8% 23.8% 0 42,771 $6.86
Convenience / Strip 673,196 172,398 0 172,398 25.6% 26.6% 6,694 -17,460 $13.10
Freestanding 2,452,237 395,114 0 395,114 16.1% 16.1% 0 -3,445 $7.04
Neighborhood 2,088,316 373,405 0 373,405 17.9% 17.9% 1,000 941 $7.80
Regional 918,901 8,071 0 8,071 0.9% 2.3% 13,424 29,424 $27.50
TOTAL 6,774,187 1,101,375 0 1,101,375 16.3% 16.6% 21,118 52,231 $8.74
WEST
Community 970,270 133,809 0 133,809 13.8% 13.8% 0 -1,233 $12.00
Convenience / Strip 571,351 129,885 0 129,885 22.7% 21.2% -8,848 -14,144 $13.05
Freestanding 966,046 88,898 0 88,898 9.2% 4.6% -44,898 -2,365 $12.35
Neighborhood 1,413,419 279,777 0 279,777 19.8% 22.5% 38,778 124,023 $11.74
Regional 776,510 11,515 0 11,515 1.5% 1.5% 0 3,439 $20.00
TOTAL 4,697,596 643,884 0 643,884 13.7% 13.4% -14,968 109,720 $12.22
MARKET TOTALS
Community 5,585,695 697,886 0 697,886 12.5% 13.5% 58,632 258,476 $11.98
Convenience / Strip 7,576,819 1,422,341 5,178 1,427,519 18.8% 18.9% 7,575 -47,490 $12.87
Free Standing 13,268,871 1,081,178 0 1,081,178 8.1% 7.5% -90,891 9,179 $8.30
Neighborhood 13,380,318 2,012,678 68,744 2,081,422 15.6% 16.0% 59,409 76,108 $10.68
Power 2,704,460 242,205 0 242,205 9.0% 9.0% 0 -6,450 $7.52
Regional 8,291,093 793,667 25,000 818,667 9.9% 9.9% -446 264,460 $18.99
Street Front 388,709 79,063 0 79,063 20.3% 19.9% -1,847 32,413 $13.29
TOTAL 51,195,965 6,329,018 98,922 6,427,940 12.6% 12.6% 32,432 586,696 $11.75
COLLIERS INTERNATIONAL | P. 3

4. THE KNOWLEDGE REPORT | Q3 2011 | RETAIL | CINCINNATI
Smaller projects are on the horizon too, as expansion of the “fast casual” restaurant. A fast
Brandicorp announced plans for a $2.5 million casual restaurant is a restaurant that does not 512 offices in
retail strip center next to the Fort Wright Wal-Mart. offer full table service, but promises a higher
The developer also has plans for a site in Anderson quality food and atmosphere than a fast food 61 countries on
Township, which could possibly include a First restaurant. All over Cincinnati, fast casual
restaurants are popping up and expanding across
6 continents
Financial Bank and a Buffalo Wild Wings at the
corner of Beechmont Avenue and Asbury Road. the market. Notable names in the Cincinnati United States: 125
market are Five Guys Burgers, Firehouse Subs, Canada: 38
Latin America: 18
HOTTEST SUBMARKET Chipotle, Hot Head Burritos and SmashBurger. Asia Pacific: 214
These restaurants have been highly active in EMEA: 117
One of the hottest submarkets for the third quarter
Cincinnati and also throughout the Midwest. • $1.5 billion in annual revenue
of 2011 was the North Central Submarket. This
submarket posted 115,688 square feet of positive • 979 billion square feet under
FORECAST management
absorption for the quarter. In addition, rental rates
in the North Central Submarket rose to $12.57 per The Greater Cincinnati Retail Market continues to • Over 12,000 professionals
square foot, as owners took advantage of the show positive signs of growth and we expect to
positive activity they are witnessing. Tri-County see the same trend for the balance of 2011. RETAIL TEAM:
led the way as Tri-County Commons, Tri-County Vacancy rates will continue to fall slightly, possibly Ken Arbino
Marketplace and Tri-County Towne Center were 25 to 50 basis points in the fourth quarter. Rental +1 513 562 2238
major contributors to positive absorption. The rates should remain unchanged, but may uptick Justin T. Rex, MCRE
overall vacancy rate for this submarket stands slightly as owners try to take advantage of the +1 513 562 2218
at 16.3%. positive activity we have seen. Construction will Morton A. Schwartz
move forward and some smaller projects are +1 513 562 2277
expected to be announced by the end of
EXPANSION OF FAST CASUAL Mike Ziegler, CLS
the year. +1 513 562 2224
RESTAURANTS
One of the biggest trends this quarter was the Jeff Johnston, CPA
+1 513 562 2231
RETAIL SUBMARKETS Chris Prosser, CCIM
+1 513 562 2232
Steve Timmel, CCIM
+1 513 562 2221
CEO/PRESIDENT:
NORTH NORTHEAST Shenan P. Murphy, CCIM
+1 513 721 4200
CENTRAL
DIRECTOR OF RESEARCH:
Brian T. Graham, CCIM
NORTHWEST +1 513 562 2214
GRAPHIC DESIGNER:
Ricky Dennis
+1 513 562 2213
EAST
CBD
WEST MIDTOWN Colliers International | Greater Cincinnati
425 Walnut Street, Suite 1200
Cincinnati, OH 45202
Colliers International
statistics are audited
annually and may result in
revisions to previously
reported quarterly and
BOONE KENTON CAMPBELL final year-end figures
Accelerating success.
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