Retail Growth on McCulloch Boulevard: What it Means for Investors

McCulloch Boulevard has long been central to the evolution of Lake Havasu retail. However, recent revitalization and expansion have brought historic retail institutions neighboring new and dynamic offerings. Retail development is also stretching farther down the road as time passes. But what does this growth mean for investors? Read on for a few insights.

Retail Real Estate on McCulloch Boulevard

Tourism Remains a Factor

You can’t talk about Lake Havasu City retail without mentioning the influence of the tourism industry. The city sees more visitors each year, which has a noticeable impact. McCulloch Boulevard and the surrounding area have various businesses that support tourism. For example, you have places selling swimwear and recreational equipment. You’ll also find lots of dining. Businesses catering to tourists can do particularly well as you get closer to the bridge. However, you’ll also find many places that cater to people who own second homes in Lake Havasu.

Growth Beyond Tourism

While tourism will always be a key driver, much of the recent growth results from the city’s expanding year-round population. Known for its pleasant lifestyle, Lake Havasu is becoming a full-time home for retirees, remote workers, and families. Population growth pushes demand for grocery stores, healthcare businesses, convenience stores, and dining options. It also creates growth opportunities for various home and professional service businesses. Recent housing developments on or near McCulloch Boulevard also increase foot traffic, creating more opportunities. For example, the city approved a new development on McCulloch Boulevard earlier this year.

Demand for Retail Space

The convergence of these trends leads to increasing demand for retail space throughout the city. However, McCulloch Boulevard is a retail hotspot in a great location. Property values are rising as more businesses seek to capitalize on this strategic location. That could present significant opportunities to CRE investors. Prime locations closer to the lake will always have high demand. However, investors should keep an eye on new opportunities near housing developments. Beyond conventional retail, mixed-use may also have significant potential. However, investors looking to buy and businesses seeking leases should expect stiffer competition.

Increasing Rental Rates

Lake Havasu’s high demand for retail space is doing more than pushing property values up; it’s also increasing rental rates. Property owners can charge more as businesses compete to lease high-value space on McCulloch Boulevard. This dynamic may challenge some businesses, but it should increase returns for investors. However, it could complicate projecting rent increases for long-term leases. That could cause issues when negotiating and structuring commercial lease agreements.

Are you interested in Lake Havasu retail real estate? Click here to contact Shuffler Commercial Real Estate. We are your local experts in the commercial real estate market. We have you covered from buying and selling to leasing services and strategic advice.

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