A new commercial shopping center is being proposed in the Morrison Ranch community of Gilbert.
The more than 21-acre center, referred to as Morrison Ranch Commercial Center, is being proposed on land owned by Fred Meyer Stores Inc. — an entity of Cincinnati-based Kroger Co. The land is at the northwest corner of Elliot and Power roads.
Fry’s Food Stores, which is owned by Kroger, is expected to bring a 120,000-square-foot store to the development, said Dan Henderson, Gilbert’s economic development director. At 43,560 square feet per acre, the proposed Morrison Ranch Commercial Center amounts to more than 920,000 square feet of land.
Henderson said it doesn’t appear that any other tenants besides Fry’s have been secured for other retail space or pad sites on the property as of yet.
Fry’s Food Store of Arizona is listed as the owner of the site in documents included in the agenda for the Gilbert Planning Commission meeting held on Wednesday. Discussion on the project, though, was pushed to the next meeting set for Oct. 5.
Fred Meyer Stores Inc. acquired the Gilbert parcel from Morrison Ranch Inc. in August 2016 for nearly $4.6 million, according to documents filed with the Maricopa County Recorder’s Office. The site is located to the south of San Tan Charter High School’s power campus.
Fry’s, which is owned by the nation’s largest grocery chain Kroger Co. (NYSE: KR), is the largest supermarket chain in the Valley and one of the largest employers in the state. The company holds 26.67% of the Valley’s grocery store market share and employs more than 21,000 employees across Arizona, according to the Business Journal.
Fry’s could not be immediately reached for comment.
Earlier this month, Fry’s confirmed it will open its new north Phoenix store on Oct. 5. The new store is part of a retail center being developed by Phoenix-based Red Development. Fry’s is the anchor of the center and it will also include a Super Star Car Wash, McDonald’s, Chick-Fil-A and Someburros.
The new 109,224 square-foot location will be located at 26300 N. Norterra Parkway in Phoenix – near the corner of Jomax Road and Norterra Parkway.
During the second quarter of 2022, the Valley’s retail sector saw its vacancy rate drop to 6.6% — the lowest it’s been since 2007, according to a research report from real estate firm Avison Young. Since 2006, the average vacancy rate in Phoenix has been 8.8%. The Valley’s average rental rate for retail space is $21.21 per square foot, but for newer, class A spaces it is at $26.19 per square foot, the Business Journal reported.
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