TUCSON, ARIZONA – Dollar stores continue to thrive, even as Americans are enjoying a full-employment economy, suggesting shoppers have internalized bargain-shopping behaviors learned during the Great Recession.

California-based Swerdlow Family Holdings, LLC purchased a 7,880- square-foot Family Dollar Store located at 5713 S. Park Ave. in Tucson.  The property was purchased as an investment sale from Olson Family Dollar, LLC for $1,075,000 ($136 PSF) with 5 years remaining on the lease.

The impact of shoppers flocking to discount retailers is only expected to continue to hit enclosed and outdated shopping malls, of which the U.S. arguably still has far too many today. And Bank of America says additional store closures by mall-based retailers will only continue to benefit the discount stores like Walmart and Target, as the pool for competition over shoppers’ dollars shrinks further.

Typically selling inexpensive items, dollar stores or price-point retailers predominantly sell all of their merchandise at a single price. The dollar store industry has grown rapidly throughout the United States and North America in general in recent years. The stores tend to be located in smaller communities that are too small for Walmart’s. Dollar store sales amounted to approximately 33.8 billion U.S. dollars in 2016. In that year, there were about 30,500 dollar stores across the United States. By 2021 that number is expected to grow to about 38,000, according to Statista.com.

Dollar General, planning to open 975 stores in 2019, makes it the top retail company for expansion  this year — by a long shot.

DCM Development Company of Tucson closed on approximately 1.15 acres in Marana for construction of a Dollar General store. The lot located in Rancho Marana sold for $370,000 ($7.39 PSF) and will be resold with a 15-year net lease for investment once completed.

After Dollar General, discount chains Dollar Tree and Family Dollar, are all in the top five for opening stores in 2019.

Meantime, spending is moving away from department store chains like J.C. Penney and Sears — which have been forced to shut stores in bulk — and apparel-based specialty chains such as  Dressbarn is going out of business. Forever 21 is also considering restructuring.

Dave Hammack, Principal and Retail Specialist with Cushman & Wakefield | PICOR, represented the seller in the Family Dollar Store transaction.  Joe Schuchert with SRS Real Estate Partners, Newport Beach, represented the buyer.

Hammack also represented the buyer in the land deal for Dollar General in Marana. The seller, SREP Marana Retail Associates of Paradise Valley (Randy Bury, manager) was self-represented.

For additional information, Hammack should be reached at 520.546.2712.

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GOODYEAR & EL MIRAGE, Ariz. – Microsoft announced Arizona as the location for the development of three new world-class datacenter campuses to support the growing demand for cloud and internet services in Arizona and across the Western United States. Microsoft intends to develop the datacenter campuses in El Mirage and Goodyear, Arizona to be among the most sustainably designed and operated in the world – powered with 100% renewable energy.

“Arizona has been increasingly embracing the technology industry with a pool of growing talent, an affordable quality of life for employees, and as many 200 as sunny days a year making it an ideal location for investing in datacenters and solar power,” said Brian Janous, General Manager of Energy and Sustainability for Microsoft.

“This is big news for both the West Valley and the entire State of Arizona,” said Arizona Governor Doug Ducey. “When a global leader like Microsoft chooses to invest hundreds of millions of dollars into three cutting-edge data center operations in our communities, we know our work to create the best environment for innovative businesses is paying off.”

Microsoft will partner with First Solar, an Arizona-based global leader in solar energy, on their Sun Streams 2 photovoltaic (PV) solar plant. The 150-megawatt plant utilizes some of the most sophisticated and eco-efficient solar technology available today and will provide enough power to cover the energy load for each new datacenter campus once the solar project is operational.

“As an Arizona-based company and an American solar manufacturer, we’re thrilled to be powering these data centers, which will be important drivers of local investment and economic growth,” said Kathryn Arbeit, Vice President of Project Development for First Solar. “This agreement with Microsoft demonstrates just how large-scale solar can unlock value for local communities that benefit not only from the generation of jobs but also from the tax revenues for the county.”

Microsoft’s datacenter designs are already more energy and water efficient than traditional enterprise datacenters. In Arizona, the company is pursuing LEED Gold certification which will help conserve additional resources including energy and water, generate less waste, and support human health. Microsoft is committed to zero waste certified operations for these new datacenters which means a minimum of 90% of waste will be diverted away from landfills through reduction, reuse, and recycling efforts.

Microsoft is actively investing hundreds of millions of dollars to develop these world-class datacenter campuses in Arizona. We expect they will create more than 100 permanent jobs across a variety of functions, including mechanical engineers, electrical engineers, and datacenter technicians, when the facilities are fully operational, and more than 1,000 construction jobs over the initial building phases. Once the datacenters are operating, they’re expected to have an annual economic impact of approximately $20 million across communities in Arizona.

“We are thrilled that Microsoft has selected Arizona for these facilities, which will create more than 1,100 direct and indirect jobs in construction and datacenter operations and have a significant economic impact,” said Sandra Watson, President & CEO of the Arizona Commerce Authority. “We thank Microsoft for investing in Arizona. We would also like to thank Governor Ducey, Mayor Lord and Mayor Hermosillo for their leadership, and our partners at APS for helping bring this project to life.”

“Microsoft is a world leader in technology and we are fortunate they’ve chosen not only one, but two locations in Goodyear to expand their global venture,” said Goodyear Mayor Georgia Lord. “This is a rare opportunity, and I am excited to see these projects come to fruition. This partnership is a true benefit for us all, not only bringing high-wage jobs to our talented workforce but also prompting other tech companies to follow suit.”

“The City of El Mirage is excited to welcome the Microsoft Corporation to CenterPoint Logistics Park,” said El Mirage Mayor Alexis Hermosillo. “Microsoft is building a 254,000 SF world-class, sustainable datacenter campus on 150 acres in southern El Mirage. The Microsoft datacenter campuses benefit the City and region by investing millions in our economy, creating more than a thousand construction jobs and hundreds of permanent, high paying tech jobs that will improve the quality-of-life and opportunity for residents and the state. El Mirage has a bright future! Thank you Microsoft for selecting the City of El Mirage for this amazing opportunity and many thanks to our partners at the Governor’s Office, John F. Long Properties, Arizona Commerce Authority, NOVO Development, APS, CBRE and Greater Phoenix Economic Council.”

Through its Datacenter Community Development initiative, Microsoft is actively engaged in El Mirage, Goodyear, and across Arizona. In the past year, Microsoft invested more than $800,000 on projects that deliver social, economic, and environmental benefits to the state.

Microsoft thanks the citizens of Arizona, its partners, and government officials, especially Gov. Doug Ducey, Mayor Georgia Lord of Goodyear, and Mayor Alexis Hermosillo of El Mirage, the Arizona Commerce Authority, Arizona Public Service and First Solar for helping make its vision of sustainable datacenters and increased renewable energy in Arizona possible.

TUCSON, Ariz. – Marcus & Millichap (NYSE: MMI) has announced the sale of Family Dollar, a 8,400-square foot net-leased property located in Tucson, Arizona. According to Ryan Sarbinoff, regional manager of the firm’s Phoenix office. The asset sold for $1,665,000 ($198 PSF).

Zack House, Chris Lind, Jamie Medress and Mark Ruble, investment specialists in Marcus & Millichap’s Phoenix office, had the exclusive listing to market the property on behalf of the seller, a limited liability company. The brand-new 2019 construction and new 10-year lease with corporate guaranty made this Family Dollar asset extremely desirable to potential buyers,” House stated. “The property ultimately sold within one week of the store opening to a 1031 exchange buyer out of California.”

Family Dollar is located at the northwest corner of West Irvington Road and South 9th Avenue in Tucson, Arizona. Tucson Spectrum, a 1,100,000-square-foot shopping center, is just 1.1 miles west of the property and contributes to the 27,400 vehicles per day that pass along West Irvington Road, giving great visibility to the property. Situated less than one mile off the Interstate-19, the location affords quick access to downtown Tucson and The University of Arizona.