Pat Darcy, Retail Division Head of Tucson Realty & Trust Company is looking forward to 2014 claiming the Tucson Retail Market is steadily improving, similar to its performance last year… with two steps forward and one step back!

There was only one speculative retail center built last year. Steven Mar built a 10,000-square-foot retail building west of the intersection of Ina and Thornydale in Marana, located just in front of Harbor Freight on Ina. People in the retail business thought Mar was a brave man as he started construction last spring without any tenants, but the space was 100% leased before completed by tenants such as R&S Mattress that will take occupancy soon.

“New retail developments near major intersections are very attractive to tenants,” Darcy says.

“The current retail vacancy in Tucson metro area is approximately 8% and there was 800,000-square –feet of net absorption in 2013. Quoted retail lease asking rates are averaging $15.70 per square foot NNN,” Darcy reported.

“In my opinion, there were three reasons for the Tucson market increased retail absorption: first, the small amount of new retail construction in the past two years; second, the redevelopment of central area properties by retails such as Walmart Neighborhood Markets, Walgreens, CVS, Quick Trip and Circle K; and third, the leasing of most of our vacant big boxes to tenants such as Stein Mart, Hobby Lobby, Chuze Fitness, Floor & Décor and Conn’s Home Entertainment,” Darcy explained.

Redevelopment of properties in central Tucson has been a good thing. There was too much outdated retail space in Tucson’s central core and assemblages have taken these older, smaller retail spaces off the market and replaced them with new spaces and stronger retail tenants. A good example is the redevelopment of the old El Mercado Shopping Center at the southwest corner of Broadway and Wilmot. Approximately 40,000-square-feet of obsolete shop space was taken down for a new drug store and pads for new retail development.

Darcy isn’t expecting a lot of new retail development to occur in 2014. Two major centers scheduled to open this year are at Houghton Town Center, anchored by a Super Walmart, and Conn’s Home Entertainment’s 40,000 –square-feet and Guitar Center’s 11,500 –square-feet currently under construction at Marana Marketplace, a Larsen Baker project.

Due to the recession, a major change has occurred in the timing of when anchor tenants such as grocery stores purchase or lease their sites. Before the recession, in order to get the best corners in growth area, supermarket developers would agree to deals by looking at homebuilders’ projections. Now grocery anchors want to see actual rooftops before making a decision. Expect more retail development announced in 2014 and 2015.

Darcy should be reached at (520) 577-7000.

Call It New – Call It Antique leased 42,303 square feet in the Broadway Dobson Center at 2049 W. Broadway Road in Mesa, AZ. The owner of the center is Broadway Dobson Property, LLC. Jared Lively of Rein & Grossoehme Commercial Real Estate represented the owner and Zak Kottler of LevRose represented the tenant.

A lease for 1,808 square feet at 5108 W. Olive Ave., Glendale, AZ to Ivy 2 Dental, P.L.L.C. was completed recently. The Landlord is Olive Square L.P. Jake Ertle of Rein & Grossoehme Commercial Real Estate represented the Landlord and Michael Morton of Plaza Companies represented the Tenant.

A lease for 900 square feet in Cooper Marketplace to Royal Fitted Clothing was recently consummated. The location of the property is 785 W. Warner Rd. in Gilbert, AZ. The owner of the center is Cooper Marketplace, LLC. Jared Lively of Rein & Grossoehme CRE represented the owner and the tenant.

A lease for 1,200 square feet in Cooper Marketplace to Mr. Thai was recently consummated. The location of the property is 785 W. Warner Rd. in Gilbert, AZ. The owner of the center is Cooper Marketplace, LLC. Jared Lively of Rein & Grossoehme Commercial Real Estate represented the owner and the tenant.

A lease for 1,020 square feet in Alta Vista Plaza to Mitra Tax Service was recently consummated. The location of the property is 8041 N. 27th Ave in Phoenix, AZ. The owner of the center is Alta Vista Plaza, LLC. Jared Lively of Rein & Grossoehme Commercial Real Estate represented the owner and the tenant.

A lease for 1,298 square feet in Gaslight Square Retail to Gotta Have It! Jewelry was recently consummated. The location of the property is 3631 E.Indian School Rd. in Phoenix, AZ. The owner of the center is Gaslight Square Retail, LLC. Jared Lively of Rein & Grossoehme Commercial Real Estate represented the owner and the tenant.

Stardust Non-Profit Building Supplies has signed a lease for 27,700 square feet in Glendale, Arizona at the northwest corner of 51st Avenue and Northern Avenue. Martin Leon of De Rito Partners represented Stardust in signing the lease.

Pizza Hut signed a lease for 1,200 square feet to open a new location at 9151 W. Peoria Avenue in Peoria, Arizona. Morey Fischel of De Rito Partners represented the tenant.

Rodney D. Young Insurance Agency is opening a new location in south Phoenix, just east of the northeast corner of 19th Avenue and Southern Avenue. John Trujillo of De Rito Partners represented the landlord in the leasing of a 1,376 square-foot space.

Sola Salons signed a lease for 6,776 square feet to open their first location in Arizona just south of the southwest corner of Cactus Road and Tatum Boulevard in Phoenix. Sola Salons is looking to add locations Valleywide. The tenant was represented by Matt Morrell of De Rito Partners

De Rito Partners’ brokers Brian Bridgman and Justin Rihs represented the landlord in signing a lease to add Evergreen Wellness Center to the Center City Plaza in Mesa, Arizona. The deal is for 600 square feet at the northeast corner of University Drive and Country Club Drive.

Bosa Donuts signed a lease to add another Valley location at the southwest corner of Baseline Road and Mill Avenue in Tempe, Arizona. Steve Bonnell of De Rito Partners represented the tenant in signing the lease for a 2,400 square foot space.

Wendy’s purchased 32,205 square feet of land at the NWC of 35th Avenue and Baseline Road in Laveen, Arizona. Martin Leon and Chris Corso of De Rito Partners represented Wendy’s in the deal to open their first location in southwest Phoenix.

CenturyLink signed a lease to open their second “brick and mortar” location in Arizona, located just north of the northeast corner of Power Road and Hampton Avenue in Mesa. Paul Serafin of De Rito Partners represented the tenant in signing the lease for 1,425 square feet.

Scharline’s Beauty Spot will be opening a location at Buckhorn Plaza, at the northeast corner of Recker Road and Main Street in Mesa, Arizona. De Rito Partners’ brokers John Trujillo and Trevor Clinch represented the landlord in completing the lease for 1,955 square feet.

De Rito Partners’ broker Bill Bones represented the landlord in signing a lease to a barber shop at Huntington Square in Tempe, Arizona. The deal is for a 900 square foot space at the center located at the northeast corner of Southern Avenue and Mill Avenue.

Biltmore Loan and Jewelry signed a lease for a 2,000 square foot space at Chandler Pavilions located at 54th Street and Ray Road in Chandler. Paul Serafin and John Palmieri of De Rito Partners represented the landlord in the deal.

De Rito Partners’ brokers Brian Bridgman and Trevor Clinch represented the seller in completing a deal for a 3-acre PAD at the southeast corner of Lindsay Road and Guadalupe Road in Gilbert.

MW Studio 14 Salon & Spa signed a lease for 1,300 square feet at the La Piazza Center in north Phoenix. Stan Sanchez of De Rito Partners represented the salon and spa in completing the lease at the center located just west of the southwest corner of Tatum Boulevard and Union Hills Drive.

De Rito Partners’ broker Carl Jones, Jr. represented the landlord in completing a deal with Café 99 to open their first location. The lease is for a 3,800 square-foot space at Grand Center Plaza located just north of the northeast corner of 99th Avenue and Peoria Avenue in Peoria.

R&S Mattress signed a lease to add a location at the southwest corner of I-17 and Thunderbird Road in Phoenix. Matt Morrell and Trevor Clinch of De Rito Partners represented the landlord in signing the deal for a 3,764 square foot space.

Pedrito’s Mexican Food signed a lease to open their third location in Mesa, Arizona, at the northwest corner of Power Road and Baseline Road. De Rito Partners’ brokers Gordon Heckaman and Roger Brevoort represented the landlord in the deal for a 1,093 square foot space.

Ritoch-Powell & Associates (RPA), a full-service engineering and surveying firm, signed a long-term lease to occupy approximately 9,000 SF at 5727 N. Seventh St. in Phoenix. The tenant opened its doors on Oct. 25. Davis Enterprises negotiated directly with RPA on the deal.

McDonalds signed a long-term ground lease at Melrose Marketplace, Davis Enterprises’ development on the SWC of Indian School Road and Seventh Avenue. The restaurant expects to open by Christmas. Jon Cowan and Adam Madison of Cushman and Wakefield represented both sides in the deal. Cowan now works for SRS Real Estate Partners.

Family Dollar signed a long-term lease at Melrose Marketplace for approximately 9,000 square feet and recently opened its doors. Melrose Marketplace is an infill redevelopment at the SWC of 7th Avenue and Indian School with anchor and pad. Bill Moore of Fieldstone represented Family Dollar in the lease negotiations.

Phoenix Lease Deals are published weekly, please submit your sales and leases to REDailyNews@outlook.com.