TEXAS SNAPSHOT, JULY 2006

El Paso Retail Market

Growth to the east dominates the El Paso retail market, according to Jim Payne, Director of Real Estate Development for El Paso-based River Oaks Properties. “The recent opening of Loop 375, which is a major thoroughfare for the area, will be a contributing factor in fueling the explosive growth of the market,” Payne says. “Revitalization of older areas has also been a strong movement in anticipation of new troops and their families. Fort Bliss is in the process of adding approximately 20,000 new troops as part of BRAC.”

Several new retail developments are planned or underway in El Paso. For example, the October opening of El Paseo Marketplace, a 50-acre development anchored by the area’s first Super Target in Far East El Paso, will add approximately 450,000 square feet of retail space to the area.

Far East El Paso is where it’s happening: the Zaragosa Corridor, which consists of Montana, Loop 375, Montwood and Zaragosa, is where much of the current retail development is taking place. “The Zaragosa Corridor is seeing the most development in anticipation of a strong housing push,” Payne says. “The addition of approximately 60,000 people to the area by the military appears to be the primary reason for the growth. A strong maquila market in Juarez, El Paso’s sister city, also has been a factor in the growth of the area.”

Besides Super Target opening their first area store this fall, several other retailers plan to enter the market within the next few quarters. “Pei Wei Asian Diner is scheduled to opening their first location in El Paso in the fourth quarter of this year,” Payne says. “Louisiana Famous Fried Chicken opened their first location is the area during the second quarter.”

Extremely low vacancy rates have driven the construction efforts in El Paso. And recent leases, such as local health club EP Fitness signing a lease for 55,328 square feet at 11705 Montwood, are proof of a strong absorption/redevelopment trend.

“The entire El Paso market is poised for growth,” Payne says. “West El Paso continues on a steady pace of growth, downtown looks to start a redevelopment plan and Northeast El Paso prepares for new troops. With its ample land for expansion, the east side of El Paso continues to lead in new growth. El Paso, as a whole, is situated for a growth spurt rarely witnessed by most communities.”

— Jim Payne is director of real estate development for El Paso-based River Oaks Properties.

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