Thanks to its natural beauty, sunny skies, manicured golf courses, high-end shopping, and sports and cultural amenities, Phoenix has become a world-class destination. Each year, millions of people are drawn to the Valley of the Sun, as the Phoenix area is known, taking in its spring training baseball games, museums, and other inviting attractions. Visitors and residents alike enjoy a plethora of offerings such as golf, hiking, shopping, and culinary delights.
While the warm climate brings people to Phoenix, its affordable housing and comparatively low cost of living keep people here. The population has increased 37% since 2000, more than three times the U.S. average. Over the next 10 years, the population is expected to grow by another 1.1 million. Additionally, an average of 61,400 jobs are projected to be added each year from 2015-2017. The area features 220 million square feet of retail space spread over 250 square miles. A dozen malls act as anchors in the market’s retail landscape, which includes power centers, community centers, and neighborhood centers in addition to stand-alone restaurants and other freestanding retail. The most prominent and popular retail areas are located in Camelback Corridor, Old Town Scottsdale, and North Scottsdale.
camelback corridorThe Camelback Corridor is Phoenix's premier retail, hotel and office neighborhood. Anchored by Biltmore Fashion Park and flanked by the Arizona Biltmore Hotel, the area is home to numerous high-end fashion tenants, nationally recognized restaurants, and three class A office projects offering 2.4 million square feet of rentable space. The old Ritz Carlton is being renovated to a new Marriott Autograph Collection hotel, The Camby Hotel, set to open in December 2016.
OLD TOWN SCOTTSDALEOld Town Scottsdale provides visitors and residents opportunities to shop, dine, tour museums, see historic structures, and enjoy the nightlife. Amidst designated historic buildings, shoppers can find specialty retailers including western wear outfitters, booksellers, art galleries, home décor shops, boutiques selling Southwest jewelry, restaurants, and numerous nightlife options. Although not anchored by national retailers, the district draws patrons looking for a unique shopping experience.
NORTH SCOTTSDALEA collection of three major retail centers defines another prominent retail submarket, North Scottsdale. The area is flanked by numerous resort hotels and championship golf courses, and is anchored by Kierland Commons, Scottsdale Quarter, and The Promenade, all three of which feature high-end retail offerings and some of the finest restaurants in Metropolitan Phoenix. Inspired by quaint city districts where charming streetscapes are lined with unique storefronts and cafes with residential above, the "Main Street" feel of the area is unique to the Phoenix market.
MILL AVENUEMill Avenue is a historic street in Tempe. Located in north Tempe adjacent to Arizona State University, the street runs through a popular, pedestrian-friendly shopping and nightlife district. Lined with local retailers, restaurants and bars, the area draws patrons from across the Valley. Mill Avenue plays host to many street fairs and city festivals. It was described in 2010 by a New York Times reporter as "a bohemian commercial strip next to Arizona State University."
WESTGATE ENTERTAINMENT DISTRICTWestgate City Center is a mixed-use development located in the west side of Metropolitan Phoenix. Described as a super-regional destination for shopping and entertainment, Westgate is part of a sports complex that features the arena for Arizona Coyotes (National Hockey League) with the stadium for Arizona Cardinals (National Football League) located to the south. These venues, in addition to a Cabela's sporting goods store, AMC Theater and Dave & Buster’s, create a synergistic boom to the area and draw visitors from around the region. Additionally, Tanger Outlets opened a 388,000-square foot mall at Westgate, bringing more than 70 retailers to the area. The draw of tourists and locals to this factory outlet mall will boost the area considerably. Two notable features at Westgate include the WaterDance Plaza, an events plaza featuring a 60,000-gallon "dancing fountain" display that was inspired by the more elaborate display at the Bellagio casino in Las Vegas, and an agglomeration of electronic signage and media boards said to be the largest "Media & Signage District" west of Times Square, earning the nickname "Times Square of the West."
SCOTTSDALE FASHION SQUAREA key area just north of Old Town Scottsdale is the Scottsdale Fashion Square, the U.S. Southwest's distinctive address for premier shopping, dining, and entertainment. It is the largest shopping destination in the Southwest, offering a collection of more than 225 retailers including the only Neiman Marcus and the first Nordstrom in Phoenix, the newest Macy's, and the largest Dillard's in the country. In 2009, the location added Barney's New York. Scottsdale Fashion Square also offers a host of entertainment and dining opportunities including multiple restaurants and numerous specialty food selections.
|KEY AREAS / STREETS/SHOPPING CENTERS||CONSUMER PROFILE||MAJOR RETAILERS PRESENT||NEW ENTRANTS||TYPICAL RENT FOR UNIT OF 2,000 SQFT||RANGE OF UNIT SIZES|
|Biltmore Fashion Park||Tourists, high-end retail, nearby office employees||Saks Fifth Avenue, Macy's, Apple Store, Ralph Lauren, lululemon||Arhaus Furniture||$40||2,500 sf and up|
|Old Town Scottsdale||Tourists, artists, trendsetters||Local stores, mostly owner occupied||$20.00-25.00 psf||1,000 sf and up|
|Scottsdale Fashion Square||Mass market, locals, families, tourists||Barney's New York, Neiman Marcus, Nordstrom, Macy's, Armani Exchange, Ann Taylor, Gucci, H&M, J Crew||Georgiou, Diane von Furstenberg, ivivva||Withheld||750 sf and up|
|North Scottsdale||Mass market, locals, trendsetters, tourists||Apple Store, Anthropologie, H&M, Nike, Urban Outfitters, Restoration Hardware||Arhaus Furniture, American Girl||$45-$65||1,000 sf and up|
|Mill Avenue||Tourists, students, locals||Local stores, mostly owner occupied, Restaurants, AMC Theater, Urban Outfitters, Gordon Biersch||Dierks Bentley’s Whiskey Row, Snooze, Postinos (restaurants)||$23.00-$40.00+ psf||1,000 sf and up|
|Westgate City Center||Sports enthusiasts, tourists, locals||Tanger Outlets, AMC Theater, Quiksilver, Yardhouse, Crave, As You Wish||Dave & Busters, Fractured Prune||Withheld||1,000 sf and up|
|Downtown CBD||Tourists, CBD workers, theater-goers, convention attendees||Urban Outfitters, Lucky Strike, Stand Up Live||Orange Theory, Grabbagreen, Fractured Prune||$18.00-$35.00+ psf||600 sf and up|
Data as of February 2016
Influenced by the extensive Hispanic culture and proximity to Mexico, Phoenix is renowned for authentic Mexican food in local restaurants across the metropolitan area. Additionally, because Phoenix is a melting pot of transplants from other regions of the U.S., Phoenix also has some of the finest cuisine offerings the country has to offer.
Fox Restaurant Concepts, founded in Tucson in 1998, has exploded onto the Phoenix dining scene with a dozen different restaurants that appeal to restaurant-goers of all ages and tastes. Usually located near popular shopping destinations, Fox has launched such wildly popular concepts as The Henry, Culinary Dropout, NoRTH, Olive & Ivy, and True Food over the past few years.
Drawing from the downtown labor force, conventions and sports events, Cityscape, a relatively new downtown mixed-use development recently launched a variety of restaurants including Blue Hound Kitchen featuring contemporary American food in an urban setting. Additionally, Fox Restaurant Concepts opened The Arrogant Butcher at Cityscape, a menu fused with seafood, steaks and burgers.
Twice each year, area restaurants participate in Restaurant Week, a statewide affair that gives foodies the chance to explore culinary delights from hidden taco shops and steakhouses to high-end, award-winning white tablecloth eateries. Arizona Restaurant Week celebrates the best the state has to offer, with well over 100 Phoenix area restaurants participating.
Town and Country, located at 20th Street and Camelback, recently completed a renovation that added Nordstrom Rack, The Container Store, Orvis, and Forever 21. In conjunction with its opening, several restaurants opened, providing new offerings to support the Biltmore area including Snooze, Tokyo Joe’s and Hopdoddy.
Given the influence of football, baseball, basketball and hockey, as well as tier-two sports, college, NASCAR, PGA golf and MLB Spring Training, it is no surprise that sports bars are prevalent around Phoenix. Locally owned offerings such as Zipps Sports Grill, Blue 32 Sports Grill, Santisi Brothers and Majerle’s Sports Grill maintain a strong following. National concepts that have recently been introduced across Phoenix include Tilted Kilt and Yard House.
Lastly, local favorites such as Los Dos Molinos (Mexican), Pizzeria Bianco (Italian/Pizza), and Chelsea’s Kitchen (Contemporary) have all earned a following on the national scene and are favorites of tourists and locals alike.
|KEY AREAS||CONSUMER PROFILE||FOOD & BEVERAGE OPERATORS INCLUDING||RENT FOR 3,500 SQFT UNIT|
|North Scottsdale||Fashion/retail district with nearby resorts attract tourists and locals||Capital Grille, Bourbon Steak, Hopdoddy, Dominicks, Flemings, PF Changs||$35.00-$60.00+ psf|
|Camelback Corridor||Office/fashion/retail/hotel district attracts tourists and locals||Capital Grille, True Food, Vincent's, Chelsea's Kitchen, Ruth's Chris, Donovan's Steak and Chop House, Del Frisco's, The Gladly||$25.00-$55.00+ psf|
|Old Town Scottsdale||Arts/fashion district attracts tourists and locals||Cowboy Ciao, Culinary Dropout, Don & Charlies, SumoMaya, PF Changs, Yard House||$25.00-$40.00 psf|
|Downtown Phoenix||CBD attracts convention-goers and sports enthusiasts||Arrogant Butcher, Blue Hound Kitchen, Bitter & Twisted||$18.00-$35.00 psf|
|Tempe||Power Center retail with nearby local retail district||The Keg Steakhouse, Kabuki, Culinary Dropout, The Mission at Minder Bnder, PF Changs||$25.00-$40.00+ psf|
Data as of February 2016