Just watched a 5-year-old strip mall in Phoenix go from 90% leased to 40% in 18 months

I manage a few properties out in the West Valley and there's one plaza on Bell Road that was full back in early 2022. Now there's four big vacancies and the anchor grocery store pulled out last March. Online orders and the new development 3 miles north just sucked the life out of it. Anyone else seeing this kind of drop in their older centers?

2 comments

2 Comments

dakota_fox2d ago

Aren't those anchor losses usually about lease negotiations failing instead of the market itself?

drew7912d ago

My old spot in the plaza off 17th street got hit with a double whammy - the anchor store left when their lease ran out and the landlord wanted 40% more per square foot. They couldn't agree on terms so the whole place lost traffic for about six months before a grocery chain moved in. I learned the hard way that sometimes it's both things at once, not just one or the other.