Lake Zurich’s first-quarter retail vacancies dropped about 15 percent since last year

Retail vacancy rates in Lake Zurich have dropped by about 15 percent since last year, according to a report released by the village’s planning and development department.

The first-quarter findings indicate 10.75 percent of the retail units in the village remain vacant, down from 12.65 percent at the same time last year.

Building and Zoning Director Dan Peterson said the arrivals of new businesses such as L.A. Fitness, which is slated to open at 825 S. Old Rand Road this fall, helped bring down the vacancy figures.

“It’s a nice reduction,” said Peterson, who presented the report to the village board Monday. “Overall, we’ve held our own through some tough economic times, and these numbers could show that things are starting to pull through.”

Of 257 retail spaces in the village, 37 remain vacant.

The village vacancy rates fall well below the national average of 11.9 percent, but still are high compared to the Chicago area average of 9.5 percent.

“There’s a lot of work to do, but I feel strongly that this is a sign of better things to come,” Peterson said.

Village officials hope the improvements can carry over to the industrial sector, which reached a peak vacancy rate of more than 30 percent in 2010, but tapered off to around 20 percent last year. An official first-quarter industrial report is expected in the weeks to come.

Village Planning Manager Vijay Gadde said decreased rental costs in the industrial zone of northeastern Lake Zurich have attracted nonindustrial tenants.

“These are spaces with high ceilings attracting new tenants, athletic centers and outdoors stores,” Gadde said. “It’s something the village is exploring as a new opportunity.”

Tight zoning regulations generally restrict retail or nonindustrial tenants from leasing in that area. A committee headed by Peterson and including other officials and business leaders has convened to review their options in the months to come.