Recent trends in Lexington's retail market include the addition of big box retailers, that are establishing initial locations or adding second stores, according to Jim Kemper, senior associate with NAI Isaac Commercial Properties. "Lexington continues to be a very difficult market in which to have land re-zoned for retail purposes," he adds.

With this continuing lack of available retail zoned land in Lexington, retailers looking to enter or expand in the market have learned to move quickly when a suitable location becomes available. New retailers to the market include Banana Republic, Babies "R" Us, Gattitown, Regal Cinemas, Barnes & Noble and Staples.

Major land parcels that have been developed throughout the city include a 30-acre site developed by Meijer, with a store of approximately 200,000 square feet on Reynolds Road. On New Circle Road at Northpark Marketplace, Wal-Mart has developed 192,000 square feet of space and Staples signed a 24,000-square-foot lease.

The growth of the East Lexington market, at the intersection of Man O' War Blvd. and Interstate 75, with big box users, small shop retailers and restaurants, is expected to continue. Due to availability of land zoned for retail and the rapidly expanding residential areas nearby, it also has been the most significant area of growth and is rapidly becoming one of the busiest corridors in the market.

Derived from a survey of 52 multi-tenant shopping centers and mall developments in Lexington comprising a total gross leaseable area of ± 8.9 million square feet, the present retail vacancy rate is estimated to be 3.8 percent.

"In the near future, keep an eye on Man O' War Boulevard east of Richmond Road and Harrodsburg Road," Kemper says. "These are both strong residential growth areas of Lexington and there is some land zoned for retail/restaurant use."

Jim Kemper serves as senior associate with NAI Isaac Commercial Properties.


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