Parking lots like the one for At Home, formerly the site of a Target at 5255 E. Broadway, could be used to create drive-thru business options.

 Rebecca Sasnett, Arizona Daily Star

As the number of giant department stores in the Tucson area fades, the question remains on how to repurpose the vacated spaces.

The closure of JCPenney at El Con Mall and the Sears at Tucson Mall contributed to 1.6 million square feet of vacant big-box space at the end of 2021, according to the CBRE annual Big Box Report.

There are currently 30 spaces larger than 10,000 square feet on the market.

Big entertainment venues such as movie theaters, bowling alleys and indoor trampoline parks reopened in 2021, but lingering hesitancy by consumers over the pandemic prevented full operation for many.

“Further, many in this category are repaying landlords for deferred rent that was given during governmental shutdowns,” said Nancy McClure, first vice president in the Tucson office of CBRE, who authored the report.

“Nationally, many shopping center owners are looking to demolish all or parts of their centers to redevelop to mixed use with multifamily, medical, distribution centers and offices,” she said. “This redevelopment is often challenged by zoning constraints and political will to do the work that will be needed to take dark retail into a viable future.”

The windowless basement at the old Sears at Park Place is a challenge to lease, but one unconventional client has shown interest, said McClure, who was unable to provide details because the deal has not closed.

And, massive parking lots adjacent to some big-box stores are now obsolete, McClure said, citing the former Target store on Broadway that is now an At Home furniture store.

“Once you take that space from a Target to an At Home, parking requirements are half,” she said. “This gives property owners the option to create some new pads right up along the main road.

“Anything with a drive-thru is attractive to a tenant.”

Some older shopping centers have been sold to new investors who view the property differently and want to invest money in them, McClure said.

One trend happening nationally is online brands leasing short-term brick-and-mortar stores to drive interest in their merchandise.

“It gets customers familiar with their brand,” McClure said. “They can touch and feel the merchandise, and that drives online sales.”

Whether it’s more pop-up stores or drive-thru options on empty parking lots, Tucson’s retail scene is expected to change quite a bit in the coming years.

“The hope is we’ll continue to see a lot of interest in Tucson,” McClure said. “The property owners that adapt to the evolving retail landscape, with the guidance of real estate advisors and data, are poised to thrive.”

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Contact reporter Gabriela Rico at grico@tucson.com