Pruitt’s Furniture sale points to shrinking big-box space SanTan Sun News

Pruitt’s Furniture sale points to shrinking big-box space

August 23rd, 2018 | by SanTan Sun News
Pruitt’s Furniture sale points to shrinking big-box space
Business
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SANTAN SUN NEWS STAFF

The sale of the old Pruitt’s Furniture store in Chandler represents another indication that the Valley’s glut of big-box retail building is easing.

Ray Cashen of Cashen Realty Advisors said that the Great Recession of 2008 “left a massive overhang of big-box retail buildings exceeding 6 million square feet.

“This situation was made worse as a result of competition from online retailers like Amazon, eBay, Wayfair and Overstock,” he said, adding that the glut has been cut to about 4 million square feet as health clubs, schools, mini storage, offices and healthcare operations fill the vacancies.

Smaller-footprint stores of retailers like Target have back-filled vacancies left by Sports Authority and Toy R Us, he added.

Cashen represented Five Sons Furniture AZ in selling the 6.87-acre Pruitt’s Furniture store at 1200 N. Alma School to Store Capital Corp. of Scottsdale. The 62,286-square-foot building went for $3.45 million.

VASA Fitness intends to invest an additional $3 million in tenant Improvements to turn the building into a state-of-the-art health club.

“VASA Fitness’ Phoenix expansion plans include five locations in the Valley and the Chandler site is part of the metropolitan Phoenix footprint,” Cashen said. VASA has over 200,000 members and owns fitness clubs in Utah and Colorado.

Cashen said that as the economy strengthens, “additional absorption within the vacant big box sector is anticipated” and that as much as another 2 million square feet will be converted to new uses by the end of the year.

“While there are many traditional retail centers that have survived, commercial retail shopping center development has reinvented itself out of necessity,” he said. “The end result is more choices and convenience for the consumer. And that ultimately is a welcome development.”

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