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Photo by Bob Pennell The b. cazwells flower shop moved recently from downtown Medford, next to Vogel Park, to east Medford. Despite some vacant storefronts along Main Street, business people say the district is doing well. Downtown's prospects look up Molly Reed owners Kim Hearon and Linda Outfleet moved the store to the spot it left nearly 10 years ago, at the corner of Bartlett Street and Middleford Alley. "This block has gotten to be so cute," Hearon says. Some new vacancies may dot Main Street, but the health of downtown Medford remains good, urban renewal and business people say. And there are signs that revitalization efforts are taking hold, particularly around the Sixth Street parking garage. "Downtown is still very strong," says Scott Henselman, a real estate agent who handles leasing of downtown buildings and is treasurer of the Heart of Medford Association, a downtown advocacy group. Henselman says the commercial vacancy rate is less than 2 percent for the area between Riverside and South Oakdale avenues and Fourth and 10th streets. That's partly because of the expansion of Rogue Community College, which occupies six buildings downtown and soon will move into a seventh, the former Montgomery Ward building at Central Avenue and Eighth Street. The college is using several former retail spaces as classrooms. For retail spaces of 5,000 square feet or less, Henselman says the vacancy rate is 7 to 8 percent. "We are holding our own," he says. There's been a fair amount of change among downtown merchants in recent months. Several businesses -- Molly Reed, NeoGlassic Studios, Musichead and b. cazwells -- have moved either to new spots downtown or to other parts of town. Others -- Park Terrace Cafe and Jueden's Furniture -- have closed. Mike Webber of Medford Urban Renewal Agency says even the newly created vacancies aren't a big concern, because they are tied to individual business issues rather than larger problems. "That's going to happen," says Webber, who works to recruit and retain business for the agency. "If it were tied to conditions or a general downturn, I'd be concerned." Still, filling those vacancies and others is getting increasingly difficult, Henselman says. "We aren't experiencing as rapid growth as I'd like to see," he says, "but that's because of the competition." The renewed focus on leasing at Medford Center and the construction of shopping areas such as Larson Creek Center have increased competition for tenants, Henselman says. And larger centers can offer incentives that smaller investors who own one or two buildings can't. Still, Henselman says the lower prices generally offered downtown and the independence from mall or center rules make downtown an attractive location. That's quickly becoming the case along Middleford Alley, the newly named cobblestone street on the south side of the garage. NeoGlassic Studios, a stained-glass arts business, moved from the corner of Eighth and Grape streets into the final 2,100 square feet of retail space in the garage, reopening there Wednesday. "It's wonderful," says NeoGlassic co-owner Kat Olson. Though she and partner Andy Tillinghast were initially concerned about losing the visibility they had on Grape, they were impressed by efforts to revitalize and promote downtown. "They've laid so much groundwork," Olson says. "Everybody is in a position that is poised for success. It's really going to happen. It's sort of an act of faith for us but we really believe in what's going on." Molly Reed, which has sold gifts and home interior products downtown for 17 years, opened in a new -- and old -- spot Friday. The store moved back into the spot it left nearly 10 years ago at the corner of Bartlett Street and Middleford Alley. Kim Hearon, who owns the business with Linda Outfleet, says they were drawn by the area's emerging charm. "This block has gotten to be so cute," Hearon says. A new business called Suzannes Gift Garden Home plans to open in May at 30 N. Central Ave., the former home of Molly Reed. Owners Kreg and Suzanne Buschman, who are coming from Crescent City, Calif., say they, too, have taken notice of downtown Medford on trips here to visit family. "We've been looking to move out of Crescent City because the economic base is a little narrow," says Kreg Buschman, "and Medford is to be up and coming and growing real well." Today's Edition : News | Sports | Business | Weather | Tempo | Classifieds Mail Tribune Copyright � The Mail Tribune 2000, Medford, Oregon USA