Vestar Delivers 400 KSF Retail Center in Phoenix

November 19, 2025

Retail Development News Phoenix More West

The property is fully leased.

Aerial shot of the Costco store that anchors Queen Creek Crossing, a 400,000-square-foot retail center in Queen Creek, Ariz. — A 154,580-square-foot Costco store anchors the newly delivered Queen Creek Crossing. *Image courtesy of Vestar*

Vestar has completed Queen Creek Crossing, a 400,000-square-foot retail center in Phoenix’s Queen Creek suburb. Initially designed to comprise 300,000 square feet, the project broke ground in the summer of 2022 and came online in two phases.

Queen Creek Crossing is currently fully leased. The property’s main anchor tenant, a 154,580-square-foot Costco store, opened its doors in 2023. A 55,000-square-foot Hobby Lobby and a 45,000-square-foot Ashley Furniture joined the roster later on.

Tenant also include BJ’s Restaurant and Brewhouse, Ono Hawaiian BBQ, Smoothie King, Sleep Number, Fleet Feet, Well Groomed Pets, Desert Financial Credit Union, Natural Pediatrix, Gallery Nails and Snip-Its. The Habit Burger Grill and U.S. Bank will open retail spaces at the property in December 2025 and late 2026, respectively.

Located on a 31-acre site at the intersection of South Ellsworth Road and East Fulton Parkway, the retail center serves more than 150,000 residents within a 5-mile radius. Mesa Gateway Airport is about 5 miles away and downtown Phoenix is some 37 miles northwest.

Vestar’s retail portfolio in the same suburb also includes Queen Creek Marketplace and Vineyard Towne Center. The first one is a 90,170-square-foot property within 1 mile of Queen Creek Crossing, while the second one is a 260,000-square-foot shopping center anchored by a 145,000-square-foot Target store.

Phoenix retail market’s mixed bag

Greater Phoenix saw nearly 412,000 square feet of retail space delivered in the third quarter of this year, bringing the nine-month total to more than 1.8 million square feet, according to a Kidder Mathews report. The figure marked a 13.4 percent growth over the year. Meanwhile, the market’s construction pipeline amounted to almost 1.85 million square feet, down by 40.8 percent on a year-over-year basis.

Retail vacancies rose to 4.6 percent, up 20 basis points year-over-year, in line with the current U.S. retail market trends. However, the average asking rent also went up 5.4 percent from the third quarter of 2024, reaching $1.67 per square foot.

Vestar