What Tucson Wants: How the Retail Market Is Answering the Call

What Tucson Wants: How the Retail Market Is Answering the Call

“If you build it, they will come” was once said by Kevin Costner, and it has become a long-standing saying in commercial real estate. But what exactly do Tucson residents want? Over the past several years, the City of Tucson gathered massive amounts of public feedback through Plan Tucson 2025. Required by Arizona law, this state-mandated general plan is updated every ten years to ensure it reflects the community’s priorities. Shaped by nearly three years of outreach, the plan outlines the policies that will guide economic development, investment, and land-use decisions through 2035, and in November 2025 voters ratified it through Proposition 417 with more than 62% in support. Thousands of Tucsonans weighed in on exactly how the city should evolve so Tucson can continue to be a great place to live, work, and play. Looking at those community priorities alongside our recent retail market reports shows where consumer demand is heading, and how the commercial real estate sector is stepping up to meet it.

One major area of feedback fell under the category of “Economic Vitality.” Much of it centered on jobs, wages, and keeping Tucson a business-friendly place. Residents praised the city’s startup-friendly environment, its festivals, food, and murals, while raising concerns about limited job opportunities and overregulation that can stand in the way of new business. Woven through their suggestions was a clear call for local business to provide more entertainment and places to gather. This aligns with a national trend in retail. Over the last several decades, and accelerated post-pandemic, retail has moved toward an “experiential economy”.

Experiential retail goes beyond goods or dining; it is about creating interactive, memorable experiences. Cushman & Wakefield reports that U.S. consumers now dedicate a near-record one-quarter of their budgets to experience-based spending. Even when household budgets are tight, people prioritize shared, memorable moments, and the stores that deliver them are the ones that thrive. Landlords have noticed, and they are filling space with tenants that act as social anchors. You can see it locally with Padel Alley, an eight-court padel and pickleball club that opened on Speedway, and with Roadies, the new entertainment venue that took over the former Bed Bath & Beyond at Grant and Swan.

Another major theme from the city’s outreach centered on vacant big box stores and strip centers. Residents paired that frustration with a clear desire to see empty buildings converted into spaces that serve the community. The good news is that the market is already moving that way, largely out of necessity. The high cost of new construction means very little speculative retail is being built in Tucson right now. Instead, there has been a strategic shift toward adaptive reuse, with repositioning existing space continuing to outpace ground-up development. Older big-box and junior-box footprints are being reimagined for non-traditional retailers, fitness operators, and indoor recreation concepts, exactly the kind of infill residents said they wanted to see in their neighborhoods. For example, The Picklr brought a pickleball facility into a former Best Buy at Oro Valley Marketplace, and Lava Island filled the former Conn’s at Marana Marketplace with a 40,000-square-foot indoor playground for families. Fitness operators are doing the same, with Planet Fitness recently signing a 58,205 SF lease on Broadway.

While residents want local experiences, affordability remains a priority. The Plan Tucson 2025 feedback also surfaced real concern about wages trailing the cost of living, and that economic reality is driving another trend the retail market is seeing. The thrift, resale, and deep discount sector has seen a significant increase, driven by consumer demand for affordability and sustainability. Recent leases show retailers actively serving value-conscious shoppers, from Savers moving into a former Conn’s on Broadway to Daiso, the Japanese discount chain, opening its second Tucson store in a former Dress Barn on East 22nd Street.

Comparing the city’s survey data with current leasing activity makes Tucson residents’ wishes clear. Experiences, reuse of older buildings, and discount stores are in demand. Traditional drive-thrus and new pads will keep surfacing, but the bigger story is how existing retail inventory is being repurposed to meet today’s residents’ needs. The market is listening, and the result is a more resilient retail landscape for Tucson.

 

SOURCES

“Tucson Voters Approve Proposition 417, Adopting Plan Tucson 2025.” City of Tucson, 11 June 2025, content.govdelivery.com/accounts/AZTUCSON/bulletins/3fa27a3.

“The Daily Agenda: Shaping the City’s Future.” Tucson Agenda, 27 Sept. 2023, tucsonagenda.substack.com/p/the-daily-agenda-shaping-the-citys.

“Cushman & Wakefield | PICOR Tucson Retail MarketBeat, Q1 2026.” Cushman & Wakefield | PICOR, May 2026, www.picor.com.

Rockey, Rebecca, and James Bohnaker. “The Rise of the Experiential Economy.” Cushman & Wakefield, 7 Apr. 2025, www.cushmanwakefield.com/en/united-states/insights/the-rise-of-the-experiential-economy.

“$1.25M Purchase Brings Padel Alley to Tucson.” Cushman & Wakefield | PICOR, 11 Sept. 2024, blog.picor.com/investing-in-recreation-1-25m-purchase-brings-padel-alley-to-tucson/.

“Beyond Bed and Baths: Entertainment Center Roadies Opens in Former Bed Bath & Beyond Space.” KGUN 9 Tucson News, 16 Apr. 2025, www.kgun9.com/news/community-inspired-journalism/midtown-news/.

“Tucson’s Q1 Retail Market Report: New Developments, Thrift Sector, and Redevelopments Drive Steady Growth.” Cushman & Wakefield | PICOR, 21 May 2025, blog.picor.com/tucsons-q1-retail-market-report-new-developments-thrift-sector-and-redevelopments-drive-steady-growth/.

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