Downtown Toledo Retail Market Insights / by Matt Rubin

Over the past 15 years downtown Toledo has seen increasing numbers of people attending sports events and cultural attractions, renovations carried out and new buildings going up. Business leaders from Toledo’s public and private sectors have made a commitment to creating a vibrant downtown and have created a master plan to direct the growth. Their strategy includes plans for turning the riverfront into an attractive destination, ensuring the area is pedestrian and bicycle-friendly and creating residential space, offices and retail space. In a market analysis that evaluated demographic trends, real estate supply and factors impacting future demand, analysts found numerous opportunities to add a variety of retail to downtown.

Analysts found that the Toledo residents within a five-minute drive of downtown have a purchasing power of about $120 million, however when you expand that radius to a 15-minute drive, that figure rises to $3.9 billion.

People head to downtown Toledo for a number of reasons, and by extension have different demands. Generally, residents want retail goods like groceries and hardware as well as entertainment and services. Workers are looking for places to eat lunch and dinner.

Sports fans who are downtown to cheer on the Mud Hens or Walleyes seek out bars and restaurants. Convention attendees and those in town for cultural events like a new exhibit at the Toledo Museum of Art or a Toledo Symphony concert need dining space and can support general merchandise and apparel retail shops, while tourists headed to popular attractions like the Toledo Zoo or Imagination Station.  

Overall, the current demand for restaurants and retail goods and services in downtown Toledo from residents, workers and visitors is about 620,000 square feet of space, and it is estimated that an increase in housing and development can grow this demand by as much 225,000 square feet. According to the Downtown Toledo Master Plan, there is about 1.3 million square feet of space downtown that is currently used for retail or is appropriate for retail, but only a fraction of retail space downtown is being used for food or retail goods, leaving ample opportunities for those wishing to sell these high-demand products. Moreover, average rents in the area lie in the $8 - $14 per square foot range, which is very competitive for the Toledo area.

A market analysis of downtown Toledo shows that the prospects are good for retail establishments in the area. Thinking this could be the perfect location for your new microbrewery or clothing shop? Please contact Crane Development to learn more.