By Nellie Day
Metro Phoenix’s population grew to include more than 5 million people in 2023, per the Census, making it the second fastest-growing large U.S. city that year. This increase in residents and employment opportunities naturally brought new, emerging and different retailers to the area, who quickly occupied both existing centers and new developments.
Phoenix-headquartered Vestar’s activity paints a picture of how this retail market has grown with its population. In the last quarter of 2024 alone, Vestar broke ground on Verrado Marketplace, a 500,000-square-foot shopping center in Buckeye; ushered in a new wave of tenant openings at Las Tiendas Village in Chandler and Queen Creek Marketplace in Queen Creek; and brought back a seasonal pop-up inside a 50-foot spherical dome at the District at Desert Ridge Marketplace in Phoenix.
Balancing Tenant Mix, Community Relevance
The key to capitalizing on Metro Phoenix’s growth, the firm says, is focusing on tenant diversification and market positioning. Vestar actively seeks out curated tenant mixes that not only attract foot traffic but align with the demographic and economic profiles of each community.
Las Tiendas Village, for example, recently welcomed Marshalls, beauty supply store Happy Beauty, luxury lash spa Revelashons and child-focused hair salon Sit Still Kids. They join existing national retailers like HomeGoods, Five Below and Sprouts, as well as other community-centric services, including waxing and hair removal salon Sugar Sugar and MUV Martial Arts.
“Las Tiendas continues to evolve into a prime shopping destination,” says Harrison Cole, Vestar’s leasing and development manager. “We’re thrilled to welcome these new additions and offer more retail and dining options to locals and visitors alike. Bringing these businesses together in one location allows us to better serve a community that values quality, convenience and variety.”
The same can be said at Queen Creek Marketplace, which debuted Carter’s and breakfast/lunch/brunch spot First Watch in November. The two tenants occupy a combined 8,600 square feet, bringing Queen Creek’s occupancy to 98 percent. The 900,000-square-foot retail, dining and entertainment destination also includes Target and Trader Joe’s, among others.
Set to open in 2026, Verrado Marketplace anticipates more suburban growth for the Phoenix area. So far, the tenant lineup includes national brands like Shake Shack and ULTA Beauty, alongside community favorites such as Handel’s Ice Cream. Verrado will be situated at the entrance to DMB Associates’ 8,800-acre Verrado master-planned community. This blend ensures the marketplace remains relevant as Buckeye experiences population growth and evolving consumer demands. Anchors at the project are set to include Target, Harkins Theaters’ newest “Backlot” concept, Safeway, Ross, Marshalls and HomeGoods.
“As one of Verrado’s very first residents, I’ve driven past this vacant lot for over 20 years,” stated Buckeye Mayor Eric Orsborn, in a release. “I couldn’t be more excited to finally see this land transformed into the vibrant destination we’ve always envisioned. The date-night restaurants, entertainment and retail that Buckeye residents have been asking for and truly deserve will soon be right in our backyard. This Vestar development will elevate Buckeye as the place to be in the West Valley and help drive growth throughout the entire city.”
The firm is also looking to bring new, unique and evolving experiences to Phoenix submarkets through seasonal pop-ups. The Ember Lounge holiday pop-up experience sold out in 2023 at the District at Desert Ridge Marketplace. This past holiday season, Vestar introduced the all-new “Dome After Dark,” a cocktail bar with live DJ performances that paid homage to the concept’s location inside the dome.
“After last year’s sell-out Ember Lounge experience, it became clear we needed to bring it back bigger and better,” says Jenny Cushing, the firm’s vice president of leasing. “With a longer run time, fresh menus and the debut of the all-new Dome After Dark, we extended Phoenix’s favorite seasonal celebration to spread even more holiday cheer.”
— This article was originally published in the January 2025 issue of Western Real Estate Business.