Retail's had a hard time since the recession, but investors are now expecting a more robust market—at least in places with strong local economies, like Phoenix.
Ohio retail giant DDR recently acquired the 277k SF Palm Valley Pavilions West in Goodyear for $61M from Heitman, an adviser to a California pension fund. DDR VP of transactions Dan Sutherland tells us the company anticipates continued strengthening of the retail market in Phoenix, and in particular the West Valley, with rents steadily increasing and vacancy rates declining.
Demographic metrics are a key driver of retail expansion, and Phoenix is trending in a positive direction, Dan says. "Population growth and a robust housing market in the Phoenix area will drive demand for retail space for the foreseeable future."
The property is 100% leased, with such tenants as Ross Dress for Less, Total Wine, Best Buy, Charming Charlie and Ulta. DDR has been an active buyer and seller recently; it now owns seven retail properties in metro Phoenix.
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