Montez

Retailers in the Palm Springs, California, market are expanding out, toward Palm Springs/Cathedral City in the west as well as La Quinta in the east, according to Maggie Montez, vice president at CB Richard Ellis’ Indian Wells office. “Historically, retail tenants coming into the Coachella Valley have located one central store in Palm Desert,” says Montez. “Sales in those locations have grown so strong that those retailers are now expanding to two or three locations within the Valley.”

The expansion of retail throughout the Greater Coachella Valley, and especially in Palm Springs/Cathedral City and La Quinta, has occurred because of the recent completion of the Highway 111 corridor in Palm Desert. The highway and neighboring areas underwent a revitalization to attract commercial development. “People should keep an eye on Highway 111 in La Quinta,” says Montez. “There is phenomenal home growth in this vicinity with few retailers serving the area.”

Some developers are taking advantage of the growth in the area and are building several retail projects. The Centre at La Quinta, an 80-acre center located on Highway 111 between Dun Palms Road and Adam Street, is underway and will be anchored by a 220,000-square-foot Wal-Mart Supercenter. Other tenants at the center include Marshall’s and PetsMart, notes Montez. Two more Wal-Mart Supercenters are also planned; one will break ground at Desert Gateway at Interstate 10 in spring 2004, and the other at the corner of Ramon Road and Crossley Way in Palm Springs, adjacent to a Lowe’s Home Improvement Warehouse.

The growth of the area is also bringing new retailers to the Valley. Kohl’s will open its first department store in the Coachella Valley at One Eleven La Quinta Center at the corner of Highway 111 and Washington.

Henry’s/Wild Oats is also planning to brings its concept to the area, opening a location in La Quinta in 2004. “The Coachella Valley is growing at about 6 percent annually with no stopping in sight,” says Montez. The area has about 350,000 full-time residents, with another 150,000 seasonal residents and 3 million tourists a year, she notes.

The Carver Companies is growing with the area and is one of the most active retail developers in Palm Springs. “The company was one of the original developers of grocery-anchored centers in the Coachella Valley and is now involved in two of the Wal-Mart Supercenter developments,” says Montez. Las Vegas-based Laurich Properties is also an active developer, having just completed an Albertsons-anchored center at Monterey Avenue and Country Club Drive in Rancho Mirage. The company is also planning several more retail developments in the area.

Some recent leases in the area include the relocation of Pier 1 Imports to a 14,000-square-foot space at the Desert Crossing Center, located at Highway 111 and Fred Waring Drive in Palm Desert. Legacy Furniture is moving into a 30,000-square-foot vacant building, located at One Eleven La Quinta Center.

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