Big-Box Vacancies Mostly Filled

The good news about Albuquerque’s big-box vacancies is that most of them have been filled.
But that may also be the bad news, at least for luring new retailers.
Many major retailers have shifted strategy in the last five years, preferring to take over existing properties than spend on “ground up” development. That’s according to the panelists at Monday’s luncheon for NAIOP, the commercial real-estate development association.
“We’ve seen mostly absorption of existing properties,” said Kino James of Base 5 Retail Partners. “There’s been about 19 big-box vacancies and, of those, probably 15 have been absorbed. We’re getting to a place where there’s not a lot of box spaces left.”
For example, Dick’s Sporting Goods established its first Albuquerque store inside an old Walmart building at Cottonwood Commons. The chain is putting a second location in part of the former Macy’s at Coronado Center.
Gordmans arrived much the same way, with new stores opening later this year next to Dick’s at Cottonwood Commons and Coronado.
Total Wine & More moved into the old West Side Borders bookstore in February, while Conn’s launched its Albuquerque presence with a store inside a onetime Builder’s Square at I-40 and Eubank.
“We’ll see if those (big) tenants still come into this market. While they have demand, they’re still not willing to pay a lot of the economic costs for new construction,” James said.
Dave Cheatham of Accelerated Development said some “ground-up players” have been interested in redeveloping Market Center Crossing, the mostly vacant shopping center at I-40 and Eubank that Accelerated acquired earlier this year with plans to remodel.
“I don’t want to be so crazy to say development’s not coming back because it eventually will come back,” he said. “(But) the market has changed.”
By: Jessica Dyer (Albuquerque Journal)
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