2020 Tucson Retail Market Forecast by Pat Darcy, Retail Division Head of Tucson Realty & Trust Co. Presented at CCIM conference 2020.
At the recent CCIM conference in Tucson, AZ, our retail division head, Pat Darcy, was asked to give his 2020 Tucson Retail Market Forecast. His prediction for 2020 vacancy rate is 5.4%. He also gave a recap of some of the biggest retail deals in 2020 and commented on recent trends in the retail market.
Biggest Sale Deal of 2019: Wal-Mart Super Center at Oro Valley Marketplace was purchased by Town West Realty, Inc. in partnership with HSL Properties for $15,827.00
Biggest Lease Deals of 2019: Burlington Coat Factory (NEC of Limberlost and N. Oracle), Chuze Fitness (Oxford Plaza on 22nd St), Chuze Fitness (SEC of Grant and Craycroft, Vasa Fitness (Grant and Alvernon) and
Larsen Baker has the top two retail properties under construction: Michael’s at Marana Marketplace and the SEC of Grant Rd and Tucson Blvd.
Trends in the market include long-time anchor tenants, such as Sears and KMart closing. With an increase in online shopping, retailers are finding that they need to be both online and have a brick and mortar presence to be successful. This is known as “omni-channel” marketing. Grocery stores are putting new construction on hold and many businesses are pre-leasing spaces before building. Another trend is non-traditional retailers such as health clubs and restaurants becoming anchor tenants.
Downtown, restaurants are continuing to expand such as Cafe Poca Cosa, Maynard’s and The Hub, while smaller establishments are doing well. May retail and office projects are on horizon such as 75 East Broadway, the former Ronstadt Bus Center and a Bookman’s moving into the former Chicago Music Store. Big Box retailers like “At Home” are also beginning to move into our marketplace.
Southern Arizona cities such as Marana, Vail and Sahaurita are also seeing notable growth in retail with centers like Marana Marketplace and Crossings at Sahaurita and companies such as Lucid Motors.
