- Austin Counts, Inside Tucson Business
Three of Pima County’s commercial real estate leaders see great opportunities in the new year for companies looking to reassess their office or retail space needs while commercial property owners may want to consider selling as out-of-state buyers are lining up.
Melissa Lal, president of Larsen Baker, LLC, said she expects many changes in the local restaurant and retail industries as drive-thru eateries seem to be one of the big winners during the pandemic.
“The big story of 2021 will be drive-thrus… everyone wants a drive-thru these days. You’ll see freestanding buildings pop up in all the big-box parking lots,” Lal said. “Walmart, Lowe’s, Home Depot, you name it, they’re all looking to sell off prime parcels in their parking lots to the active drive-thru businesses like Raising Canes or Starbucks.”
Lal also predicts rent for new construction to increase as a result of logistic impacts and supply chain issues brought on by COVID-19 and increased demand for new homes throughout the nation. She also said to expect favorite mall retail staples like Sephora, Foot Locker and Old Navy to begin expanding into stand-alone buildings as traditional shopping center formats decline. Lal noted that prime-located retail real estate will become more valuable across Pima County as older and not-so-well located retail space will suffer as a result.
“The best corners in Tucson right now are Oracle and Ina, Irvington and I-19, Skyline and Campbell, Swan and Sunrise, Cortaro and I-10, and Broadway and Craycroft,” Lal said. “We can only expect these corners to continue to get stronger in 2021.”
To commercial property owners, Lal recommends considering selling due to historically low-interest rates, potential political changes and an influx of California buyers.
“My advice to any commercial property owner would be that selling now may be advantageous,” Lal said. “Interest rates are crazy low and a new political administration may make changes that could negatively affect property values, like getting rid of the 1031 Exchange.”