A new Costco Business Center could be coming to an old Tempe computer superstore.
Earlier this year, Costco Wholesale Corp. (Nasdaq: COST) submitted plans to the city asking to modify the exterior of the former Fry's Electronics at 2300 W. Baseline Road, said Josh Rutherford, economic development program manager for the city of Tempe. But no further discussions have taken place on those changes, he said, and no formal request has been made for permitting.
Still, Costco potentially moving into the space was on the list of projects Tempe economic development staff included in a presentation to area executives on Oct. 13. Staff also gave updates on such projects as Venue Projects' Hayden Flour Mill, Hines' 250 Rio project, George Oliver's Arbor renovation, Danelle Plaza and South Pier.
In the presentation, staff said the proposed business center would be 148,000 square feet and a 15-acre site. The store could open in late 2023, though, that slide of the presentation was accompanied by a question mark.
"We’re excited to have a large empty box in that area be filled and excited to have Costco and their business store be located there," Rutherford said. "[The presentation] was an update of what's going on in the city. We briefly highlighted several projects throughout the city that are upcoming, what's happening now and in the future."
When contacted by the Business Journal, Costco declined to comment on the possible store.
"Unfortunately, it is our company policy to not comment regarding future Costco warehouses until we are ready to share details about the new location," the company wrote back.
As of Sept. 30 — the latest shown building permits by the city of Tempe — Costco has not filed a building permit for 2300 W. Baseline Road. Maricopa County records show that the property is still owned by Gila LP, an entity linked to Fry's Electronics that purchased the 180,000-square-foot store on 17 acres with a cash down payment of just less than $4 million in 1997. The building was built in 1994, county records show.
Fry’s Electronics closed the location along with its remaining 30 stores in nine states in February 2021 after 36 years in business, blaming the Covid-19 pandemic and changes in the retail market.