Drive around Rapid City, and you'll notice a common sign at strip malls: For lease.

Stung by the sagging economy and a spending slowdown, strip malls across the nation are taking it on the chin. Vacancies are up as new shopping centers open and businesses in existing strip malls close or move.

But Rapid City real estate agents and strip mall managers hesitate to call the city's market a true slowdown, even though there are plenty of freshly built strips scattered throughout the city with space available.

"It's not a grim, grave, bad situation, but it's certainly not vibrant," said Loren Miles, a broker associate with Prudential Kahler Realtors. "We certainly don't have a shortage in retail, that's for sure."

Miles has received plenty of calls from interested retailers for a spot at the Cambell Street Plaza, but nobody wants to bite quite yet. He thinks business owners are waiting to see how the new Cabela's store and the Rushmore Crossing shopping center will affect shopping.

"There are a lot of people that just seem to be in the planning state, the discovery state. That's the bulk of them," he said. "I think there will be big growth, but who knows where it's going to go. I think we're in a big state of change."

Darci McManigal, property manager of Black Hills Properties, has noticed the numerous signs for open strip mall spots, and it worries her.

"To me it seems like they're overbuilding," she said.

McManigal has 110 tenants spread out among 20 or 25 locations around town, and she has been quick to close the deal with any businesses interested in her vacancies, given the economy.

"We really try to accommodate whoever is looking for space," McManigal said. "We've given some incentives we normally wouldn't have."

The brokers for the city's newer strip malls remain optimistic.

Sandra Runde, a commercial real estate broker with Prudential Kahler Realtors, already has one tenant signed for the 18,000-square-foot Cuatro Vistas building nearing completion on Haines Avenue in north Rapid City. She is in talks with a number of other tenants, as well.

Runde says she is also upbeat about the Stoney Creek Plaza East and South buildings in southwest Rapid City, a development owned by dentist Bill Donhiser and Dr. Bruce Evans, both from Rapid City.

Currently, there are two businesses open in the South strip mall, but Runde believes the buildings are perfectly positioned to take advantage of their location on the intersection of Sheridan Lake Road and Catron Boulevard. The area is seeing residential growth and increased traffic.

"I believe Donhiser's is an up-and-coming location," she said. "I think he has a lot of vision. I think they will get leased quickly."

Jim Dickerson, property manager for Donhiser, said he is working to find just the right mix of tenants.

Donhiser and Evans don't want just anybody in the buildings, and they're willing to wait for tenants who serve the relatively upscale neighborhood.

"They want it to be a nicer complex," Dickerson said. "They don't want it to be just another strip mall."

At the new Tuscany Square on Omaha Street downtown, there are some open spots, but they're filling up, including the opening of Seven Sisters Fabrics.

"I believe the new strip malls are going pretty well," Runde said. "Of course, you have exceptions to the rule."

One is The Shops at Rapid City strip mall on Disk Drive adjacent to Kohl's and PetSmart, north of Interstate 90 and east of Haines Avenue.

Since the 20,800-square-foot strip mall was built last year, it has stood empty. Despite the lack of a lead tenant, there has been interest, said Mike Derby of Bender Commercial Property.

"Kohl's and PetSmart have exceeded expectations for that location," he said. "So traffic's good, and we do have some interstate visibility."

Illinois-based Rubloff Development Group owns the building and wants retail in the strip mall instead of offices. That doesn't mean the firm wouldn't be open to suggestions.

"If someone has a creative use for that space, do not hesitate to give me a call, and I'd be glad to forward that on to the owners," Derby said.

See related story: To avoid 'junky' vibe, some strip malls turn down video poker, tanning, title-loan businesses

Contact Jeremy Fugleberg at 394-8421 or jeremy.fugleberg@rapidcityjournal.com.