Service Retail Takes Off in Phoenix

Dan Lupien

Service-driven retail is taking off in Phoenix. While the big box market is struggling, service- and entertainment-driven retail concepts are experiencing roaring success. The Block at Pima Center, a new retail development in Scottsdale, is a perfect example of the leasing activity. The first phase of the project was fully leased before delivery earlier this month, and the second phase is already 50% leased.

“Coming from the big box world at Kimco Realty and now on my own, it is clear there is a shift happening in the retail market,” Dan Lupien of developer Palmer Development, tells GlobeSt.com. “Retail big box development will continue to be a challenge. Big Box stores are downsizing or getting eliminated altogether because the buying habits of consumers are evolving. For many millennials, the thought of driving to a big box power center to go shopping seems like a ridiculous notion—but they will dine out at restaurants almost every meal. Service retail, entertainment and restaurant developments will continue to thrive so long as the developer can create a sense of place in the project.”