Large, vacant spaces citywide subdivided into smaller stores
Gabriela Rico Arizona Daily Star
In the game of blackjack, you should always split your 8s.
In a down economy, splitting vacant retail space once occupied by big-box stores can also be a strategy.
Such is the case in Tucson, where real estate agents and retailers are negotiating for spaces once occupied by big national chains.
Near the intersection of Oracle and Wetmore roads, the former Circuit City building is being split to accommodate two retailers. Neither could fill the entire space left when the electronics retailer left.
Cost Plus World Market and Jo-Ann Fabric and Crafts will occupy the space once renovations are complete, said Nancy McClure, first vice president at CBRE, specializing in retail properties.
Negotiations were recently completed also for the former Circuit City on Broadway and Craycroft Road, but the interested tenant isn't ready to make an announcement, she said. Similarly, a deal on the space vacated by Border's Books at Oracle and Limberlost roads is being negotiated.
"At the beginning of the recession we saw a lot of major retailers go under and had a glut of big spaces on the market," McClure said.
In her midyear report, she said the absorption of those spaces is going well, and creativity is helping the process.
Similar to other markets, Tucson is seeing churches, fitness facilities and other large spaces such as the former Bally's on Grant Road marketing themselves to call centers in case retailers aren't interested, McClure said.
"We're seeing some nice, strong healthy activity and interest in our markets," she said.
And then there are the sticklers, such as the former Old American Furnishings building on Oracle Road, just north of Wetmore Road.
"It's been on the market for quite a while," McClure said. "It's an 'A' location but difficult to re-tenant with its multi-level parking garage and four stories of retail space."
Compared to bigger markets with a bigger supply of big-box space, Tucson is doing well, she said.
"We are recovering really nicely," McClure said. "I think that's just good news. We did not get overbuilt."
"We are recovering really nicely. I think that's just good news. We did not get overbuilt."
Nancy McClure
first vice president, CBRE