Business Leaders: Retail Vacancies Won't Stay That Way

The recent departure of businesses in Crystal Lake, including and , isn’t caused by the city’s market area, according to Crystal Lake business leaders.

“It’s one of those unfortunate issues, but it isn’t caused by the community or market area. If Borders goes bankrupt and closes up, it’s not because Crystal Lake is a poor community to do business in,” said Haig Haleblian, chairman of the Crystal Lake Economic Development Committee.

“It’s the normal evolution of business.  It’s not good when businesses close or leave, but Borders filed bankruptcy on a national level, crushed under a load of debt. Things have not been good for a lot of people for several years and it finally catches up with you,” said Gary Reece, Crystal Lake Chamber of Commerce president.

Crystal Lake Borders is one of 200 of the bookstore chain’s sites that will close in April. Office Depot is not renewing its lease and will vacate its current site to move to a remodeled site, east on Northwest Highway/Rte. 14.  That will leave three major vacancies at Crystal Point Retail Center, 6000 Northwest Highway. Down the road on Rte. 14, Hooters closed its doors suddenly last week.

Joel Cunningham, media relations associate for Inland Real Estate Group, leasers of Crystal Point, said the company could not make a statement on leasing activity at this time. He did confirm square footage of the sites: Office Depot, 33,585 square feet; Borders, 25,105 square feet; and Colonial Café, 3,793 square feet.

Hooters company representatives did not return requests for information.

According to area business leaders, the Crystal Point sites will not stay vacant for long.

“We are always concerned about the status of our business community. It is not something we take lightly,” said James Richter II, Crystal Lake assistant director of economic development. “We feel very good about the quality of tenants that will be taking their places.”

Richter said new tenants for Office Depot and Borders will be announced in the near future.

“According to the folks at Inland, they already have interested parties. When you are anchored by Best Buy it draws a lot of attention. That area is a very desirable spot,” said Haleblian.

Haleblian said the city is very proactive in attracting new businesses and maintaining existing businesses.

The two major business incentives are a matching grant program that grants up to $10,000 for build-out expenses and a fee reduction incentive for the Rte. 14/Rte. 31/Rte.176 development corridor, said Richter.

Richter said there are many good stories to tell about the business climate in Crystal Lake. These include the opening of Jameson’s Charhouse in the old Bennigans in late 2009 and Bye Bye Baby in the old Linens & Things in late 2010. Pep Boys also located on Rte. 14 late last year. Colonial Cafe moving to a larger site is also good news, he said.

Two new grant recipients are occupying space at Regal Showplace retail center, 5006 Northwest Highway. Yumz Gourmet Frozen Yogurt opened recently and Jersey Mike’s Subs will open in the spring.

“I’m very confident our Route 14 corridor will continue to be very strong now and in the near future,” Richter said.

Haleblian said he has seen signs of an improving economy at his business, Exceed Flooring and Surfaces.

“The traffic increased nicely. People are out shopping and buying. What we see as far as slowdown in the economy is past us. Quite frankly, I think this is going to be a great year just by what I see on a daily basis,” Haleblian said.

Reece said he’s encouraged by the number of people dining out at local restaurants.

“Restaurants are busy. I think people are feeling a little more secure,” Reece said.