Big-Boxes Still Kicking: 200K SF Coming to the Valley

Article originally posted on Phoenix Business Journal on July 9, 2017

While some big-box retailers are struggling, at least three have announced plans to expand into Phoenix.

Oklahoma-based Hobby Lobby is opening a 57,500-square-foot store at the Scottsdale 101 shopping center on the northwest corner of Mayo Boulevard and Scottsdale Road.

Texas-based At Home (NYSE: HOME) is opening a 108,000-square-foot location at San Tan Pavilions, a new shopping center on the southwest corner of Williams Field Road and San Tan Village Parkway in Gilbert. The 8.54-acre property was sold by San Tan AZ LLC, an entity controlled by Intercapital Development Inc. based in Las Vegas. The purchase price of the property was $4.1 million.

The new shopping center will have roughly 300,000 square feet of new retailersand restaurants for the area.

Velocity Retail Group represented both retailers, which are expected to open in first-quarter 2018. Dave Cheatham represented Hobby Lobby and Darren Pittsrepresented At Home.

New Jersey-based Burlington also is opening a 41,752-square-foot location this fall in Ahwatukee at 4633 E. Ray Road. The new store is expected to have around 50 to 100 jobs.

“We are thrilled to open a new Burlington in the Phoenix community, bringing even more jobs to the neighborhood and providing local residents with a valued shopping experience,” said Tom Kingsbury, president, CEO and chairman of Burlington Stores.

Though there are more than 9.3 million square feet of anchor space facing potential bankruptcy, according to a recent CBRE (NYSE: CBG) report, big-box is still healthy in the Phoenix market.

“Everyone thinks it’s dying and it really isn’t,” said Jami Savage-Gray, retail specialist with CBRE’s Phoenix office. “It’s really just the way real estate in general works. Just because a center is dying down doesn’t mean the industry is dying down.”