Rio Grande Valley retail market continues to expand

(Retail : McAllen-Edinburg-Mission) 8/18/2009

Retail activity in the Rio Grande Valley continues to expand, albeit not at the pace enjoyed over the past 5 years, according to Randy Summers of Davis Equity Realty in Weslaco.
Sales tax revenue for the entire Rio Grande Valley is about the same as last year, but some individual cities are down 8 to 10 percent while others, such as Weslaco, Mercedes and Edinburg, are up 8 to 12 percent.
JCPenney and Lowe’s Home Improvement Warehouse are under construction and will open in Weslaco in October and November, respectively. Panda Express will open in McAllen by year’s end and has plans to open five to seven units in the Rio Grande Valley.
Rooms To Go is under construction in McAllen and will open in the third quarter. CVS/pharmacy has entered the Rio Grande Valley market this year and has five locations under construction or opened. Walgreen’s, which controls the market share in this area with 13 locations, has a little more than a handful on the way.
The most active retailers leasing at this time are budget tenants like Family Dollar, Dollar Tree, Dollar General, as well as some of the soft good stores such as Ross Dress for Less, Marshalls, Bealls, and Melrose.
Walmart recently completed and opened a new store in Penitas; SDI Development is completing the JCPenney and Lowe’s development in Weslaco; and First Hartford Development is beginning the second phase of the Shoppes of Rio Grande in Edinburg.
Simon Properties is almost complete with Palms Crossing in McAllen; the Chelsea Development’s Premium Outlet Stores in Mercedes completed its third phase this year; and Davis Equity Realty is completing leasing on the Walmart SuperCenter-anchored Trenton Town Center in Edinburg and the Lowe’s-anchored Harlingen Plaza in Harlingen.

[Texas Real Estate Business]
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