TEXAS SNAPSHOT, MAY 2006

Amarillo Retail Market

Amarillo, Texas, is attracting the attention of many of the national and regional retailers, restaurants and developers, according to Pat Davis, president of Amarillo-based Pat Davis Properties. “The primary growth has been in stand-alone retail development with adjoining, smaller neighborhood strip centers located nearby,” Davis says. “Wal-Mart has opened four new Supercenters; Walgreens has opened five corner locations; CVS/pharmacy has opened three locations; The Home Depot has opened two new locations; and United Grocery has opened three new locations.” In addition, Ashley Furniture recently opened a new 70,000-square-foot free-standing location by redeveloping and expanding a vacated discount grocery store building. “This growth has been in an attempt to match up to prior population growth in the southwest and northwest sectors of Amarillo, combined with a rapidly improving economy,” Davis says. 

The southern and western quadrants of the city have enjoyed the majority of the residential, business and retail growth in Amarillo for many years, according to Davis. This area primarily encompasses the portion of the city west of Georgia Street and south of Interstate 40. “A new Wal-Mart Supercenter and Lowe’s Home Improvement Warehouse have been developed near the intersection of 45th and Coulter streets,” Davis says. “A 13,000-square-foot neighborhood strip center was built adjacent to the Wal-Mart housing Cato, Payless ShoeSource, Game Stop and several other local retailers and restaurants such as McDonald’s, Burger King, Chick-fil-A, Taco Bueno and La Fiesta.”

McClay Development Company has developed a power center (now owned by Kimco Realty) at the intersection of Interstate 40 and Soncy (Loop 335) with anchor tenants being The Home Depot, Circuit City, Kohl’s, Old Navy, PetsMart, Avenue, Famous Footwear, Fashion Bug, LA Weight Loss and OfficeMax. “This center has recently been expanded by The Seitz Group, a Dallas-based retail developer, to include Bed Bath & Beyond, Ross Dress For Less, Shoe Carnival, Dress Barn, David’s Bridal, Jo-Ann Fabrics & Crafts, Zookini’s, Subway, Starbucks Coffee, LA Nails, Alltel Wireless and Sports Clips,” Davis says. “Barnes & Noble has a free-standing location nearby, and Target has recently remodeled and expanded their location at I-40 and Soncy near Westgate Mall.”

On I-40, there have been several new retail developments, such as Furniture Row with a new 6,000-square-foot furniture-specific retail center, a new Discount Tire Company, Big 5 Sporting Goods and United Artists 16 Theater. “National restaurant chains have also opened in this area such as Joe’s Crab Shack, Logan’s Restaurant, Johnny Carino’s and Linn’s Buffet as well as local restaurants Country Barn and Kabuki Japanese Steakhouse along with Marriot Courtyard, Hilton Garden Inn, Country Inn and Suites, and Drury Inn,” Davis says.  

The northwest sector, which is the area extending north and west from the intersection of I-40 and Bell Street, has seen the most rapid retail growth in the Amarillo market during the past 18 months, according to Davis. “The majority of retail growth in this area has centered near the intersection of Tascosa Road and Highway 66 where the new Wal-Mart Supercenter has located along with United Grocery, Hastings Super Store, Advance Auto Parts, Walgreens, CitiBank, Amarillo National Bank and Happy State Bank branches,” Davis says. “A new 20,000-square-foot retail center has been developed adjacent to the Wal-Mart with a Dollar Tree, Cato, Cingular Wireless, Payless ShoeSource, Game Stop and Subway. Several restaurants have also located in this area such as Applebee’s, Wendy’s, Subway, Taco Villa and Sonic along with a new Toot N’ Totum Convenience Store and Auto Center.”

The central quadrant is located near I-40 and Georgia Street intersection and extending south to 34th Street, east to Washington Street and west to Western Street. “This area is seeing a resurgence of new retail development with a new The Home Depot, United Market Street Grocery, Walgreens, Hastings Super Store, CVS/pharmacy, Pizza Hut/Wingstreet and Sonic Drive-In, and a new Quick Quack Car Wash,” Davis says. “A 10,000-square-foot neighborhood strip center has also been built in this area with tenants such as StainMaster Carpets and Consignment Gallery adjacent to a new Holiday Inn Express, Moe’s Southwest Grill and Donut Stop.”

Extending north and east from the intersection of I-40 and Ross Street, Amarillo’s northeast quadrant has seen a moderate amount of redevelopment in the past several years, although not as vibrant as the south, west and northwest areas. “The retailers expanding into the quadrant are United Grocery, Blockbuster Video, Walgreens, CVS/ pharmacy, Family Dollar, Pizza Hut/Wingstreet, Quick Quack Car Wash, Taco Bell, McDonald’s and Sonic Drive-In,” Davis says.

The southeast quadrant of the city — the area extending from the intersection of I-40 and Ross Street and extending south and east to Loop 335 — has had little growth in residential or retail development until the last few years, with a resurgence of apartment development and middle-income housing development. “This has created the need for additional retail to be developed,” Davis says. “A local developer, The Williams Group, has developed a 30,000-square-foot neighborhood center, Tradewinds Village, at the intersection of 34th Street and Ross/Osage. The new tenants in this center are Pak-A-Sak convenience store, First United Bank, Chop Chop Restaurant, The Jewelry Box, Fun Time Pizza, Universal Nails and Roadhouse Express Restaurant. This center has available space for lease and adjacent land for expansion if needed.”

Three new retail developments have recently been announced in Amarillo. The Seitz Group is currently redeveloping the former Western Plaza Mall into a power center called Western Plaza Shopping Center. “This is an older mall location at the intersection of I-40 and Western Street,” Davis says. “The entire mall property will be torn down and all new buildings will be constructed with several outparcels for free-standing restaurant locations. The new center advertises the new tenants to be Office Depot, Michaels, T.J. Maxx, Mardel, Petco, Rack Room Shoes, Lane Bryant, Catherine’s, rue21, Books-A-Million, Kirkland’s, Red Robin, Chick-fil-A, La Madeleine and Graham Central Station.”  

The second development, The Forum on Soncy, is being developed by Lubbock, Texas-based Graco Development Company at the intersection of 34th and Soncy (Loop 335) in the west quadrant. “This new center is advertised to be an upscale fashion center with new tenants to be announced,” Davis says.

The Shoppes at Southpointe, by The Trotman Company of Montgomery, Alabama, is another new center being developed. Located on the south edge of the city at the intersection of I-27 and Hollywood Road, this center is a 100,000-square-foot open-air lifestyle center with new tenants to be announced.

“We will be watching with great interest the three new developments that have been announced to see if enough new retailers can be attracted to make these developments viable,” Davis says. “The Western Plaza redevelopment and The Shoppes at Southpointe are vying for some of the same tenants. The new upscale fashion center, The Forum at Soncy, is marketing to a different tenant base and should be successful.”

Most of the newer retail projects in the city have been from regional companies outside of the city such as McClay Companies and The Seitz Group. Graco Development has built several of the new United Grocery store locations and WM&K Development has built several new smaller centers adjacent to the new Wal-Mart locations. “These companies have established relationships with existing retailers and are working with them to move into new growth markets,” Davis says.

Amarillo has seen a strong increase in the presence of national and regional retailers expanding into this market. Some of the big box retailers are The Home Depot, Lowe’s Home Improvement Warehouse, Kohl’s, Circuit City, Best Buy and Wal-Mart. Mid-sized store retailers Old Navy, Office Depot, OfficeMax, Famous Footwear, Dress Barn, Bed Bath & Beyond, David’s Bridal, Jo-Ann Fabrics & Crafts, Dollar Tree and PetsMart have expanded into this market. “Smaller store retailers such as Chico’s, Talbots, Cato and Game Stop have also opened locations,” Davis says. “Amarillo has made its presence known with three new Starbucks Coffee locations.”

While the south and west quadrants of the city and the I-40 corridor are the areas that have received the bulk of all retail growth, the northwest quadrant is the area to be watched in the future, according to Davis. “The southeast quadrant, and specifically the 34th Street and Ross/Osage area, also has great potential for additional residential growth and a need for additional retail development,” Davis says.

Amarillo is a strong retail market and, as a regional hub, attracts people from a radius of more than 100 miles. Within this trade territory there are approximately 1 million people. “With the development of three new, large retail centers, the fear is that an overbuilt situation may occur,” Davis says. “Amarillo has recovered well and has a strong economy for a city its size. Opportunity still exists throughout the area and this is definitely an attractive market to watch.”

— Pat Davis is president of Amarillo, Texas-based Pat Davis Properties.

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