Reichle Klein Group’s 2025 Year-End Retail Market Overview

The Reichle Klein Group year-end 2025 survey of the Toledo, Ohio retail space market found a market that has moved past the initial shock from large-scale retailer distress and is now showing clear signs of stabilization. While the aftereffects of national chain failures continue to influence market metrics, the pace of deterioration slowed materially over the course of 2025, and several important indicators improved modestly by year end.

Net absorption for the year ended slightly positive following significant losses in 2024 and early 2025. Vacancy increased earlier in the year but leveled off by the fourth quarter, suggesting that the market is beginning to absorb the excess space created by the closure of chains such as Rite Aid, Big Lots and Party City. Asking lease rates continued to edge higher, reflecting ongoing demand for functional in-line space and new-build product, even as older anchor space remains under pressure.

A key development during 2025 was measurable progress in the reuse of vacant Rite Aid properties. Of the 23 Rite Aid stores that closed across the Toledo market in late 2023 and early 2024, 11 have now secured replacement uses. These include multiple locations leased to Goodwill and Dollar Tree, individual stores taken by Ace Hardware and Dollar General, and two sites transitioning to non-retail uses. Additionally, two former Rite Aid locations are under contract to Sheetz for redevelopment into new convenience store sites, while Costco acquired the former Rite Aid at Westgate for demolition and parking expansion. This gradual but steady absorption has reduced uncertainty surrounding these properties and limited further downside risk.

Leasing activity remains strongest among food, coffee, discount, and value-oriented users, which continue to drive demand for well-located in-line space. Progress around the proposed redevelopment of the former Sears site at Westgate has been particularly notable. Lease-up momentum tied to the broader Westgate area has improved, and the retail center taking shape there is expected to help reestablish the preeminence of the Westgate area within the West Toledo/Sylvania submarket.

Looking forward, market fundamentals appear steadier than at any point since the Rite Aid closures first emerged. While challenges remain, the direction of change is reassuring.