CBRE Reports Tucson Retail Big Box Absorption in 2025

Retail big box leasing activity throughout the Tucson area was active in 2025. Fifty-eight spaces greater than 10,000 sq. ft. were available at the end of 2025, resulting in 1,684,130 sq. ft. of vacant big box space throughout the market compared to forty-two spaces of greater than 10,000 sq. ft. and 1,670,000 sq. ft. of large vacant retail space recorded at the end of 2024, according to CBRE's research.

The past pace of closures added to the already vacant boxes that remain waiting for new tenants to fill the spaces, or for those demolished, awaiting new development. In some large spaces in Tucson, there were tenants ready to backfill the spaces, and the year culminated in many new leases signed across categories such as fitness, entertainment, discount and resale retailers, home improvement, auto services and medical.

Some site sales resulted in a new 23,023 sq. ft. Sprouts planned for the southeast valley and a new 186,000 sq. ft. Walmart that will soon be constructed in Marana. These new developments are following the growth in the two most explosive submarkets of the metro area, with more retailers expected to follow suit in the years ahead.

“Although there are many large retail spaces that remain vacant, what has become evident is that ownerships that are right-priced, can contribute to tenant improvements and are highly-responsive to offers, are often those that secure the tenants in the market,” said CBRE’s Nancy McClure, First Vice President in Tucson. “Some retail boxes likely will be demolished to make way for new concepts or a reimagined overall development with mixed uses, as we see the former Foothills Mall being transformed into Uptown on Ina and La Cholla Roads.”

Retail continues to evolve, and consumers have proven themselves to be multi-channel shoppers, with bricks-and-mortar playing an important role alongside online consumption. With very little construction of new box spaces, the Tucson metro absorbed 647,873 sq. ft. of 10,000 sq. ft. or larger box spaces in 2025. This is roughly 300,000 sq. ft. more absorbed than in 2024.