Phoenix’s Retail Market Has Bright Future
Outdoor patios and gathering spaces and daily needs retail will thrive following the pandemic.
The pandemic hasn’t hindered growth in Phoenix’s retail market. Although the city had temporary business closures during the pandemic, demand has continued to support retail activity, and design and architecture firm Nadel Architecture and Planning is working on new projects that will deliver in a post-pandemic world. Outdoor dining and gathering spaces and daily needs retailers will be the focus at these projects.
“A healthy and growing market, Phoenix is positioned to echo the retail trends seen in other markets throughout the country,” Greg Lyon, chairman and principal of
Nadel, tells GlobeSt.com. “Daily-needs retail has been a strong area of the retail sector that has been consistently thriving throughout the pandemic and will continue to be even after COVID-19. Grocery stores, pharmacies, and many other retailers in this category have found ways to operate safely and efficiently all these months—implementing contactless curbside pick-up and delivery to meet the needs of consumers. These services are likely to continue post-pandemic as consumers become accustomed to this convenience.”
Nadel has advocated for what it calls outdoor living rooms, which are community gathering spaces at retail centers. Although COVID has made people concerned to gather together in the short-term, Lyon says that these spaces will return in popularity. “Outdoor retail and restaurant patios, which flourished out of necessity in many markets throughout the country, may also continue in warm-weather regions like Phoenix as people have come to enjoy dining alfresco and spending more time outside as a result of COVID-19 mandates and protocols. For example, Nadel has pioneered the term “outdoor living rooms” to describe the gathering spaces we have implemented.”
Nadel is working on the Renaissance Marketplace, a new 500,000 square-foot retail center in Rialto, California, which is an example of these outdoor spaces. “We believe these spaces will become even more popular once the pandemic is behind us.”
Nadel recently opened an office in Phoenix to meet the demand for retail development, and is working with developers to bring properties to the market that take advantage of the warm weather.