How Commercial Construction in Phoenix Differs from Retail Builds
Phoenix is booming—and we’ve seen it firsthand. As both commercial and retail construction accelerate across the Valley, we’re building everything from office parks to high-end retail spaces. But these project types aren’t the same. They require different planning, different trades, and different timelines.
At Pegasus Construction, we’ve been delivering both for more than 37 years. This guide outlines exactly how commercial and retail builds differ—and how we adapt our process to meet the unique demands of each.
What Phoenix’s Market Looks Like
With more businesses relocating to Phoenix and the metro population growing, both commercial and retail construction are surging. We’re seeing logistics hubs, offices, and mixed-use projects on one end, and retail chains, restaurants, and boutiques on the other.
We’ve completed over 850 projects across Arizona and the Southwest—many of them in these two categories. Our experience gives us a deep understanding of what works in this region and what clients expect from a reliable general contractor.
What Makes Us Different
We started in 1987 as a general contractor. Over time, we expanded into a full-service firm with in-house plumbing, HVAC, electrical, and site development teams. That means we don’t wait on subcontractors for critical systems—we do it ourselves, and we do it to our standards.
Our model allows for faster timelines, tighter quality control, and direct accountability. Whether we’re managing a commercial build or a retail rollout, clients know they’re working with one dedicated team from start to finish.
Comparing Commercial and Retail Builds
Commercial construction includes offices, hotels, warehouses, and multi-tenant developments. These projects tend to be larger and more complex, often requiring specialized systems like elevators, extensive MEP infrastructure, and structural steel framing.
Retail construction, in contrast, is fast-moving and detail-focused. Timelines are shorter, and every aspect of the build—from millwork to light fixtures—must match brand standards. These projects typically occur within shopping centers, strip malls, or standalone storefronts.
We handle both with tailored teams and a flexible approach.
Planning and Pre-Construction
For commercial jobs, we often start with land development—grading, utilities, drainage, and parking layouts. These early stages shape the flow and future use of the entire property.
In retail construction, especially tenant improvements, we focus on aligning with brand specifications. We coordinate closely with franchisees or national design teams to ensure every detail—from finishes to equipment—is on point.
Our design-build delivery model helps control costs and timelines across both project types.
Permitting and Approvals
We’ve worked with permitting agencies throughout the Phoenix area. Commercial projects usually require zoning, traffic studies, fire department input, and infrastructure reviews. Retail permits are typically more straightforward but still require coordination, especially for interior improvements.
Because we’ve built in nearly every city and town across the Valley, we know how to prepare applications, track timelines, and communicate with reviewers—keeping projects on schedule and out of red tape.
Construction Execution
Our commercial jobs involve structural framing, large-scale mechanical systems, and phased buildouts. These projects might run 12 to 24 months and include everything from concrete pours to rooftop chillers.
Retail projects move faster. We’re often working in 60- to 90-day windows, installing custom finishes, lighting, and equipment while coordinating signage and inspections. We also adapt schedules around store opening dates or national rollout timelines.
Our in-house MEP teams are the backbone of both. Because we self-perform critical trades, we eliminate delays and miscommunication that often come with subcontractor handoffs.
Scheduling and Phasing
Commercial projects follow milestone-based schedules, often linked to financing stages or tenant handovers. These builds require careful planning to ensure different trades are sequenced efficiently.
Retail builds demand speed and agility. We often work nights or weekends, especially when renovating spaces that stay open during construction. Phased schedules and careful coordination are essential.
We plan both types around your needs—not ours.
Budget Considerations
Commercial projects typically include more site work, heavier infrastructure, and advanced systems, all of which increase costs. Retail costs focus more on interiors: finishes, casework, specialty equipment, and storefront branding.
We help control both with early budgeting, transparent cost tracking, and efficient design coordination. Because we self-perform plumbing, electrical, and HVAC, we can reduce contractor markup and manage quality directly.
Safety and Quality Assurance
Safety is non-negotiable for us. Whether we’re on a commercial job site or a public-facing retail build, our crews follow strict protocols including site-specific safety plans, daily job hazard analyses, and full OSHA compliance.
For retail projects, that often includes securing public zones, sound management, and minimizing disruption during open hours.
We’re proud of our zero-incident safety culture—and we work hard every day to protect it.
Why Our Model Works
Because we manage our own trades in-house, we offer speed, precision, and reliability across every phase. Clients don’t have to chase down vendors or juggle timelines. Our teams communicate in real time, every day.
This model works just as well for a retail tenant improvement as it does for a 100,000-square-foot commercial structure.
Choosing the Right Delivery Method
We offer both traditional and design-build delivery. For most clients, especially those with tight budgets or timelines, we recommend design-build. It puts our team in control of both design and construction—which cuts down on change orders and speeds up decisions.
Whether you’re building your first storefront or expanding your commercial footprint, we’ll guide you toward the best path for your goals.
Frequently Asked Questions
What’s the difference between commercial and retail construction in Phoenix?
Commercial builds are larger and infrastructure-heavy. Retail builds are faster, finish-driven, and often inside malls or shopping centers.
How long do these projects take?
Commercial jobs can take 9 to 24 months. Retail work usually runs 6 to 12 weeks, depending on size and scope.
Which is more expensive per square foot?
Commercial tends to cost more due to structure and systems. Retail costs vary based on finishes and speed requirements.
Do retail spaces need complex HVAC or plumbing?
Most don’t—unless it’s a food tenant. Restaurants and kitchens may require specialty systems.
Can you renovate without closing a store?
Yes. We’ve done many renovations in phases, with off-hours work and controlled access.
What safety steps do you take during active retail builds?
We use public barriers, manage noise levels, and coordinate closely with property managers to ensure a safe environment.
Do you use the same teams for both build types?
Our MEP trades are the same across both. We assign project managers based on scale and specialty.
Why choose design-build for these projects?
It shortens timelines, reduces budget surprises, and keeps decision-makers on the same page from day one.
Ready to Build with Us?
Whether you’re opening a retail location or planning a large-scale commercial development, we’re ready to help. At Pegasus Construction, we bring decades of experience, in-house expertise, and a local reputation built on trust.
Let’s talk about your project and how we can make it happen—on time, on budget, and with your vision front and center.
Visit https://azpci.com to schedule a consultation or request a quote.
Pegasus Construction: Your Phoenix Partner
We have been helping Arizona developers bring projects to life for nearly four decades. From the initial grading to the final inspection, we are with you at every step. Whether you’re constructing a subdivision, retail center, or industrial park, we have the team, the tools, and the proven track record to make it happen.
Are you ready to get started? Call us at 602-285-9339 or email us at contact@azpci.com. Our office is at 2140 W Greenway Rd, Phoenix, AZ 85023. Let’s create something great together.
