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Big box departures from malls have created the obsolete space and they are located on main streets with nearby transit.

When national retailers consider entering the Tucson market, they are on the lookout for nearby rooftops.

Now, developers are adding multifamily housing in what were formerly known as shopping centers — they are now referred to as multi-use centers because of added services beyond shopping, such as medical, dental, entertainment and residential.

And the new owners of the shuttered Sears at 5950 E. Broadway are eyeing the possibility of a multifamily development on the massive parking lot at Park Place, with more than 1,000 parking spaces.

Park Place Partnership LLC bought the former Sears building last year and plans to build climate-controlled self storage in the basement of the main building, Nancy McClure, first vice president with CBRE Tucson, said in her annual Big Box report on retail spaces over 10,000 square feet.

The ground-level space will be for retail, restaurants and entertainment uses.

“They’re very sophisticated and very excited about this location,� she said in an interview with the Star. “They’re looking at some multifamily development there ... that’s what’s happening in big cities.�

McClure said Broadway has always appealed to national retailers and having adjacent residents would add to that appeal.

“I’m hopeful that the city and the public agree it is good to add some bodies to the back of that area because we have to think bigger,� she said. “Where we can do infill and create density in the middle of town is going to be exciting ... part of it is political will.�

Local developer Bourn Cos. has already embraced that concept.

Two of its multi-use centers are getting apartment complexes.

Construction is underway on an apartment complex at The Bridges, at 36th Street and Park Avenue, which has both office buildings and retailers such as Walmart and Costco.

Another apartment complex is going up at The Landing, on Irvington Road and Interstate 19, next to restaurants, shops, medical clinics and a grocery store.

“We are a big proponent and place a heavy emphasis on having residential living within our larger mixed-use developments,� said Alan Tanner, partner with Bourn. “Having amenities, like groceries, restaurants, entertainment, health and wellness and work environments, all within walking distance from where you live is very desirable.�

He said it is a trend being seen around the country and one which “we expect to continue into the foreseeable future.�

Tucson Mayor Regina Romero said she supports the notion of exploring residential units on the former Sears parking lot.

“I love it,� she said. “I would love to see that idea expanded to places such as El Con Mall and Tucson Mall where there is so much parking that is not being used.�

Romero said “corridors of density� at such places, which are along transit routes, would go a long way to alleviate the housing shortage.

Allowing density translates into less costs and the city can incentivize creating affordable units within those developments with zoning.

But, Romero recognizes the struggle of getting such projects up and running because of pushback from neighborhoods.

“Yes, Tucsonans love the idea of transit and walkability and to save the beautiful desert around us from development,� she said. “But not when it’s built next to their neighborhoods.�

A second chance for big box spaces

Whether residential is part of the equation, Tucson’s empty department stores and big box spaces are expected to garner interest from national retailers.

“I believe we will see several new retailers enter the Tucson market as well as a number of existing retailers add to their Southern Arizona store count in the next year to 18 months,� Tanner said. “The availability of existing well-positioned vacant real estate, like the current Bed Bath & Beyond locations, will accelerate the expansion due to the high cost of new construction in ground up locations.�

Bed Bath & Beyond has announced three store closures in Tucson, at 5225 S. Calle Santa Cruz; 9590 E. 22nd St. and its Buy Buy Baby brand at 7475 N. La Cholla Blvd.

Last year, metropolitan Tucson had about 348,043 square feet of new leases signed in spaces of 10,000 square feet or greater, McClure’s report shows.

“The biggest sector winners in 2022 were beauty supplies, fast food, and sit-down restaurants, likely an indicator that people gained confidence in leaving their homes to dine with others and wanting to look good doing so,� she said. “For the entertainment-type businesses, gyms, bowling alleys, indoor trampoline parks, and others, they rebounded with vigor in 2022.�

There are currently 30 vacant big box spaces of 10,000 square feet or more in the Tucson area, totaling 144 million square feet.

Among the top big box transactions last year were 44,130 square feet for self storage in the basement of Sears at Park Place; 40,000 square feet in Tucson Spectrum by Burlington and Parts Authority at Fort Lowell and Oracle roads absorbed 21,750 square feet.