James DeCremer, a principal with Avison Young in Phoenix, said the northwest part of the Valley, a high-growth area, has "great" demographics, incomes and schools but is largely underbuilt in retail.
"Over the last 10 years, there has not been a lot of retail development, and so I think we're trying to play catch-up now," DeCremer told the Business Journal.
In the second quarter, Avison Young data shows that total available space in the retail sector has decreased for the seventh quarter in a row. The vacancy rate overall was 6.6%, while the vacancy rate for class A retail space was 3.5% in the Valley.
Historically, retail growth occurred along Bell Road and Grand Avenue, but as these corridors get closer to being built out, DeCremer said, retail development will continue following where the growth is.
"Now that Bell Road for the most part is fully built out, you're seeing that Cactus [Road], Waddell [Road], [Loop] 303 area, those are the next intersections and trade areas that are hitting their stride right now," he added.
Some of the newest retail projects that have been planned or proposed in the northwest Valley include:
- Bella Fiesta Commerce Center: About 23,000 square feet of retail across four buildings proposed for 10 acres at the northwest corner of Bell and Dysart roads in Surprise developed by DeRito Partners. The new project will comprise a convenience store, retail building, a drive-thru restaurant and car wash at an infill property. The planning commission held a hearing for the project on Sept. 15
- Truman Ranch Marketplace: Truman Ranch 46 SWC LLC is proposing to build 36,473 square feet of retail across multiple buildings, 107,489 square feet of self-storage space, and 601 multifamily units developed by Dominium at the southwest corner of Cotton Lane and Waddell Road in Surprise. The city approved a preliminary development plan for the project in August.
- Sterling Grove Shopping Center: Common Bond Development Group is currently developing a Safeway-anchored retail center at the northwest corner of Peoria Avenue and Cotton Lane in Surprise west of the Loop 303. The shopping center will comprise a total of 105,790 square feet of grocery, retail and stand-alone space that's expected to deliver in early 2023.
- Asante Marketplace: Barclay group is developing another grocery-anchored neighborhood center in the Asante master-planned community at the northwest corner of Pat Tillman Boulevard and 163rd Avenue. The 20-acre site will comprise a 167,205-square-foot neighborhood retail center anchored by Fry's in Surprise.
- Vistancia Point: In Peoria, Barclay Group plans to build another Fry's-anchored retail center at the southeast corner of El Mirage Road and Lone Mountain Parkway. A brochure for the property shows that Fry's, which purchased 13 acres on the site this year, will occupy a 123,722-square-foot space. About six additional retail buildings totaling approximately 33,300 square feet also are proposed.
- Lake Pleasant Promenade: A mixed-use project with a Home2 Suites hotel with 103 rooms and 62,254 square feet with four stories, a Springhill Suites Hotel with 97 rooms and four stories across 60,225 square feet and two drive-thru restaurants are being proposed for the northwest corner of Jomax Road and Lake Pleasant Parkway in Peoria, according to Upper West Side PHX.
- The Shops at Lake Pleasant: Vestar is currently developing a 90,000-square-foot shopping center in Peoria near the Lake Pleasant Towne Center close to Happy Valley Road and Lake Pleasant Parkway. The company expects the project to open by fall of 2023. Potential tenants, according to Vestar's website, could include In-N-Out, Raising Canes, HonorHealth and Over Easy.
- The Trailhead: A Safeway-anchored mixed-use project was approved by Peoria for the northeast corner of Happy Valley Road and 83rd Avenue this year. The site is slated to include 136,000 square feet of retail and restaurant space, a 15,000-square-foot worship space, amenities and a 336-unit multifamily complex.
- 83 Marketplace: High-end restaurants and stores have signed leases for the 83 Marketplace retail center across the road from The Trailhead in Peoria. The first phase of the project includes 20,000 square feet, which was completed last year and fully leased.
Recently, Peoria also approved a development agreement with Common Bond Development Group to add three "top-tier" restaurants to a small property adjacent to the Peoria Sports Complex near 83rd Avenue and Paradise Lane. Postino WineCafe was one of the first restaurants to sign on the project.
Village at Prasada
Aside from the smaller retail centers, the Village at Prasada will be one of the largest outdoor shopping, entertainment and dining centers to be developed in the Valley in recent years.
Recently, new restaurants were announced for the project, which is nearly fully leased out to national and local companies including Hobby Lobby, Ulta, Sprouts Farmers Market, PetSmart and others.
"Prasada, that's a huge project, it's an important project because there has not been a lot of big multi-anchored power centers constructed over the past 10 years. There's been some neighborhood grocery retail that's popped up, there's a lot of pad development ... but none of this substantial power center stuff that Prasada is," Decremer said.
Avison Young's most recent retail report for the Phoenix metro said because of pre-leasing demand at Village at Prasada, now other similar-sized regional shopping center marketplaces are planned for Verrado in Buckeye, east Mesa and Laveen in the next several years.
SimonCRE, the developer of the center and other projects in the northwest Valley, including Surprise's planned city center and downtown area, said its line-up of restaurants will include Lou Malnati's Pizzeria, Cold Beers & Cheeseburgers, Barrio Queen, Firebirds Wood Fired Grill, Cooper's Hawk Winery & Restaurant and O.H.S.O. brewery.
FatCats Entertainment also recently unveiled more details about its new center at the Prasada shopping center, which will include movie theaters, bowling, mini golf and an arcade and events center. North of Prasada, American Furniture Warehouse is also planning to build a new store and warehouse.