Development and opportunity hinge on central villages

BY SKYLER OBISPO
Journal Staff

The villages of Tamuning, Tumon, and Harmon have long served as Guam’s primary commercial center, anchoring the island’s tourism industry, industrial activity, and a concentration of public and private medical practices all governed under one mayorship. 

Tamuning is home to 18,489 residents, as well as several of Guam’s most recognizable commercial destinations, including Guam Premier Outlets, the Village of Donki, and one of the last remaining Kmart stores in the United States.

Suzanne Z. Perez, shopping center manager for Guam Premier Outlets, told the Journal that like many businesses in Guam, GPO and its tenants were impacted by the COVID-19 pandemic and the downturn in tourism. Several closures occurred in the past year, but she said the center has since seen a rebound. “In more recent years, foot traffic and business have picked up overall,” Perez said. “Some of our tenants have fully recovered since COVID, while others are almost there.”

Guam Premier Outlets opened in October 1997 as Gibson’s Department Store and was the region’s first outlet mall, according to Journal files. Its location in Tamuning places it minutes from Tumon’s hotel row and centrally positioned between Andersen Air Force Base, Marine Corps Base Camp Blaz, and Naval Base Guam.

Perez said while GPO benefits from its proximity to Tumon and tourist spending, the shopping center relies heavily on the local market as one of the island’s value-shopping destinations. GPO is home to several national outlet tenants, including Famous Footwear, Calvin Klein, Tommy Hilfiger, Michael Kors, and a flagship Ross store.

One of the main challenges GPO and its tenants currently face is attracting additional national retailers amid continued softness in tourism numbers. 

“We still have open communication with these potential tenants, but they are reluctant to open a Guam store with our current tourism numbers,” she said. Despite this, Perez said they remain hopeful to open new stores this year. 

Labor shortages are another issue, she said, noting that tenants are finding it increasingly difficult to hire employees — a challenge affecting many businesses across the island.

In September the Journal reported that Premier Commercial Development LLC, a subsidiary of EC Development, was finalizing the purchase of Guam Premier Outlets, with the transaction expected to close by 2026. Perez said that despite the change in ownership, GPO will continue efforts to attract national brands while supporting local entrepreneurs seeking to open and grow their businesses. 

New businesses continue to emerge within Tamuning. Matchakase, a matcha-centered café, opened its doors in Oka on Dec. 27.

Co-owner Grace Bari told the Journal the decision to open in Tamuning came through happenstance but ultimately aligned with the mindfulness-focused and tranquil atmosphere she and co-owner Rochelle Alviz wanted to create.

The café shares a building with DearTree Art Studio along Fahrenholt Avenue, a quiet commercial strip nestled within a residential neighborhood. Bari and Alviz said the café sees steady traffic from Korean tourists walking from the Rihga Royal Laguna Guam Resort, as well as nearby residents.

“I feel location-wise, we were very lucky,” Bari said.

Matchakase is also located near several yoga and Pilates studios, which Bari said complements the café’s offerings. Alviz added that while the café sits near other establishments offering similar products, the area experiences less foot traffic and a quieter pace — an intentional choice.
“Like in Japan, some of the best shops aren’t on busy streets,” Alviz said. “They’re hidden gems on side roads or upper floors of buildings. That’s the experience we want to offer.”

Looking ahead to 2026, Dominique Rose Felix-Leon Guerrero, vice president and associate broker-in-charge at Century 21 Realty Management Co. Inc., said economic conditions are improving for Tamuning following a difficult year for sellers.

She said more property owners across the island are liquidating assets, homes are remaining on the market longer, and some sellers are accepting below-market prices. Despite federal interest rates remaining higher than six years ago, Felix-Leon Guerrero said she is optimistic buyer activity will increase in 2026.

The Tamuning area and along with its neighboring villages remain the most expensive market on the island, she said, though development in villages such as Mangilao is beginning to mirror growth in the village, driven in part by the ongoing military buildup.

Tamuning, she said, offers more lucrative opportunities suited for longer-term investment.

Felix-Leon Guerrero pointed to recent developments such as GTA’s data center construction along Route 30, and noted that in 2020, Google had considered Guam as a potential location for its Asia headquarters.

Opportunity best defines the future of the village, she said, despite lingering vacancies such as the former Forever 21 and IHOP space near GPO.

One concept she hopes could materialize is the redevelopment of the former Bank of Hawaii building along Marine Corps Drive into a holistic health hub. However, she emphasized that development in Tamuning — and on Guam more broadly — depends on “the right team, the right time, or the right person.” mbj