TEXAS SNAPSHOT, APRIL 2008

El Paso Retail Market

El Paso, Texas, is seeing a positive dynamic in its retail market, influenced greatly by the infusion of nationally expanding companies such as Wal-Mart, Sports Authority, Circuit City and Costco. These new national chains are supplanting the locally owned retail sector, which is additionally affected by the influence of a newly developed factory outlet center nearby. Local ownership of businesses in this market seems to be drifting toward the food service industry and ancillary business service-oriented commerce.

“The influx into this area by the national big box stores coupled with the new nationally developed outlet mall have put a significant crease into what was historically a locally owned concentration of retail establishments,” says Tanny Berg, owner of El Paso-based Jack Berg Sales Company, Berg Investment Company and Berg Properties. “Another major adjustment is expected in the census of troops based at Fort Bliss due to our national BRAC military program. They and their dependents are expected to provide a very positive influence on this market.” 

New development is taking place all over the community, from the Northeast  submarket (due to the military population increase) to the west side (due to a housing demand increase in the historically desired sector of town) to the east side, which has always been the fastest growing area especially with the expansion of Loop 375 around the community. The Lower Valley submarket also is growing rapidly in the desirable area around the Rio Grande River.

Local developer Mimco Inc., for example, has just opened Ysleta Pointe, a 35,000-square-foot shopping center, in the lower valley. Located at 8899 Alameda, the center features tenants such as Family Dollar and Cricket. Mimco also plans to open a new 80,000-square-foot center at 8825 N. Loop at Zaragoza in June. The project, called Zara Loop, will feature a mix of national and local retailers.

In addition to Mimco, River Oaks Properties and the Maloolys are local developers that are very active in El Paso’s retail market, which currently sits at around 5 percent vacancy. The Staubach Company, Simon Properties and the developers of the outlet mall are national developers that also have come into the marketplace.

In the future, the Northeast and the Far East submarkets of El Paso should continue to see retail growth due to the military expansion and the completion of Loop 375. “El Paso is s strong market with very little fluctuations in economics, providing a better level of stability when compared to other communities,” Berg says. “Often overlooked Juarez and Mexico business just adds to the potential retail attraction.”

— Tanny Berg is owner of El Paso-based Jack Berg Sales Company, Berg Investment Company and Berg Properties.

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