In this podcast segment with community builders Ron Fain and Brad Fain, factors related to where retailers and national chains decide to locate in communities like Prescott Valley, Arizona, are discussed.
The first is population density, often referred to as “rooftops.” Most retailers look for a base of roughly 20,000 to 25,000 residents before entering the market. Without that level of demand, a store is unlikely to succeed.
Next is traffic volume and accessibility. High-traffic corridors such as Highway 69 and Glassford Hill Road are especially attractive because they provide visibility and consistent daily flow. Retailers want to be positioned along major commuter routes where customers are already traveling.
Another major factor is proximity to employment centers. Stores are typically located between residential areas and job hubs to capture traffic during daily routines, especially during commute times.
While local governments can offer incentives to influence development patterns, those efforts have limited impact unless a site already meets a retailer’s internal criteria. Even discounted or free land may not be enough if the location lacks strong traffic, nearby population, or long-term growth potential.
Retailers also rely heavily on their own data and analysis when selecting sites. In many cases, they evaluate multiple comparable locations and choose the one that best aligns with their business model and future projections.
Prescott Valley’s status as a tertiary market also plays a role. Unlike major metro areas such as Phoenix, where rapid growth can quickly support new development, smaller markets grow more gradually. Large housing developments may take decades to fully build out, which requires retailers to take a more cautious, long-term approach.
As a result, most retailers prioritize locations where demand already exists and where future growth is clearly planned. While new development will continue in Prescott Valley, it will occur at a slower and more measured pace than in larger urban areas.
