Tucson's shipping container shopping center to expand

The shipping container shopping center west of downtown will soon be adding amenities.

Opened in 2018, the Mercado San Agustin Annex began with 13 local businesses operating out of the containers with shared common space, near Interstate 10 and Cushing Street.

Over the years it has added events, such as festivals and farmers’ markets.

A commissary kitchen is under construction for the businesses operating in the annex to have more space for catering events.

The containers range in size from 320 to 1,000 square feet.

Now, the area is adding shaded seating, more stage space, a minibar and a green room for performers.

“It’s preferable to getting dressed in the parking lot,” said Kira Dixon-Weinstein, executive director of the family-owned Mercado District.

The concept of a shopping center made with shipping containers raised some eyebrows when it was first proposed.

“People thought we were crazy,” Rio Nuevo board chairman Fletcher McCusker said of the district’s decision to support the project financially.

But, since 2018, the annex has generated sales taxes of $1.1 million for Rio Nuevo, $1.4 million to the state and $484,000 to the city of Tucson.

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The Rio Nuevo board, at its October meeting, voted to put $400,000 toward the expansion.

“The success is a combination of the beautiful setting and stores that are a reflection of Tucson,” Dixon-Weinstein said. “It’s a place where Tucsonans and tourists alike can go.”

She said there are no chain stores in the district and because of Rio Nuevo’s support, “We have the ability to do something a little more special than just a basic shopping center.”

The annex is part of the Gadsden Co. Mercado District that includes single-family homes, apartment complexes and 37 small businesses in the annex and in the surrounding developments on more than 30 acres.

Up next for the district is the Bautista project, with another apartment complex, offices, a plaza with food and beverage space and a river walk.

Dixon-Weinstein said Bautista will add 15,000 square feet of commercial and retail space.

Work on the MSA Annex expansion is expected to begin in January and will be done in phases to minimize impact on the businesses operating there now.

“We really think of ourselves as a public market district and a reflection of the community that we’re in,” she said. “We hope Tucson continues to support the local retail shops so they can stay.”

Visit mercadodistrict.com to learn more.