Client: Verde Realty Group
Verde Realty Group, an owner of large land holdings including parcels ranging in size from 500 acres to over 20,000 acres of land in El Paso, Texas and Santa Teresa, New Mexico retained GG+A to assess the retail market potential of the land holdings and to identify retail development strategies for sites identified to have potential for retail uses.
GG+A conducted a retail market reconnaissance to identify the scale and type of retail uses potentially supported. GG+A directed the reconnaissance to identifying the relative strength of the retail base in El Paso and the factors underlying retail sales trends. GG+A also directed the reconnaissance to identifying the advantages and disadvantages associated with the primary Verde Realty sites and to defining potential primary market areas for retail uses at these sites. In addition, we directed the reconnaissance to estimating the relationship between the potential demand for retail goods and services from residents, workers, and visitors and the existing and likely future supply of retail space within the relevant market areas. We estimated potential existing and likely future retail demand in terms of available dollars from residents, workers, and visitors in the relevant market areas for the purchase of retail goods and services. We converted estimated retail demand or expenditure potential into estimates of the square footage of retail space the identified demand could support, given research-based assumptions about required average sales per square foot of retail space. We then compared the estimated supportable space within the market areas to the estimated supply of retail space. We did so to reach judgments about the relative intensity of competition for the sales dollars of consumers and the potential for the market areas to be able to support new retail development on Verde Realty sites.
In addition to inspecting the sites and surrounding areas, we spoke with real estate brokers, developers, mall property managers, managers of major stores in the El Paso market, and economists with the Federal Reserve Bank, the University of Texas at El Paso and the Texas A & M Real Estate Research Center.
GG+A synthesized the information and insights gained from the field research, secondary data analysis, and interviews to identify development strategies for the Verde Realty sites. These strategies related to the scale, type, design, and timing of retail uses, and tenanting and marketing of the sites that would maximize penetration into sources of retail demand.