Cushman & Wakefield | Picor reports that the Tucson retail market continued an even pace in the second quarter of 2015, ending mid-year at 6.7% vacancy. Average asking rents were $14.27 per square feet (PSF), essentially unchanged since 2011.
Thanks to achieving the one-million population milestone, interest from retailers was not lacking. In addition to Broadway at Kolb, Natural Grocers will open two additional Tucson locations by year end at Broadway & Country Club and Orange Grove & Oracle. The stores will average 12,000-square-feet. Natural Grocers complements the market entry of Haggen, that purchased three former Safeway and Albertson’s stores.
(Haggen has since announced the closure of two of the Tucson stores in a slate of 27 stores closing in AZ, CA, WA, OR see Real Estate Daily News August 17, 2015 for details )
Tucson food and beverage users were active, from Commoner & Co. and Kneaders Bakery opening, to downtown activity such as the debut of Hub Ice Cream Factory and the much anticipated Johnny Gibson’s Downtown Market. Obon Sushi+Bar+ Ramen at downtown Tucson’s east end is due to open in late summer. Other active food users included McAlister’s Deli, Popeye’s Chicken, El Pollo Loco, Tropical Smoothie, Spinfire Pizza, MOD Pizza, Cafe Rio, and continued expansion from operators such as Kneaders, Smashburger, Starbucks and Chipotle. Conversion of traditional retail space to service-based uses progressed, with Humana leasing clinical space in grocery-anchored neighborhood shopping centers at Broadway & Camino Seco and Grant & Alvernon, and planned locations in two more submarkets next year in a 6,000-sf retail format. Store closures have been fairly minimal, with shuttered Radio Shacks largely converting to Sprint and Game Stop stores. The mattress category continued expansion, with Mattress Pro taking locations at Broadway & Pantano and Grant & Swan.
To see the full C&W Picor Retail Report click here: Food, Beverage & Grocery Activity Lead the Way for Tucson Retail Mid-Year